PRESS RELEASE
FRANCHI UMBERTO MARMI S.P.A.:
THE BOARD OF DIRECTORS APPROVES THE INTERIM CONSOLIDATED FINANCIAL
STATEMENTS AS OF AND FOR THE SIX MONTHS ENDED JUNE 30, 2024
REVENUES UP COMPARED TO THE FIRST SIX MONTHS OF THE PREVIOUS YEAR (+16%) AND
IMPROVEMENT OF THE MAIN PROFITABILITY INDICATORS
- Total revenues and other income: Euro 43.7 million compared to Euro 37.8 million for the six months ended June 30, 2023 (+16), an increase equal to Euro 5.9 million mainly due to a sales increase in EMEA, North America, Australia, South America and Africa.
- EBITDA: Euro 15.3 million compared to Euro 13.2 million for the six months ended June 30, 2023 (+16.2%);
- The Operating result was equal to Euro 10.9 million compared to Euro 9.9 million for the same period of the previous year (+10.1%);
- The Profit for the period was equal to Euro 7.6 million compared to Euro 8.1 million for the same period of the previous year (-5.1%);
- Net Financial Indebtedness amounted to Euro 31.1 million as of June 30, 2024 (compared to 29.4 million as of December 31, 2023);
Alberto Franchi Chairman and Chief Executive Officer of the Company commented: "The business results achieved in the first half of 2024 are particularly interesting and confirm the validity of the strategy we are pursuing, both organically and through acquisitions. These acquisitions allowed us to make a significant expansion in new activities (such as, for example, block recovery) and in new products.
The result achieved in North America is particularly interesting and is proof of the significant growth potential in this market, which has increased thanks to the acquisition of Marmoles Man.
The Asian market, despite a slight decrease, has seen the consolidation of our leadership position in high-end products and remains central to our commercial strategy.
It is important to underline that the growth due to, inter alia, acquisitions has not affected the excellent margins that characterize us, which have actually increased slightly. A good level of company's profitability is therefore confirmed, reaching the range of 35-40% that we had announced as the medium-long term objective.
Looking ahead to the coming months, it will be essential to enhance the good work done through participation in trade fairs, including the Xiamen event in China, and to take advantage of the
opportunities offered by current participation at the Marmomac event, currently underway in Verona.
***
Carrara, 26 September 2024 - The Board of Directors of Franchi Umberto Marmi S.p.A., a leading international company in the processing and marketing of Carrara marble, listed on the Euronext Growth Milan market (Ticker: FUM) (the "Company"), approved the interim consolidated financial statements as of and for the six months ended June 30, 2024 prepared in accordance with the international accounting standard applicable to interim financial reporting IAS 34 adopted by the European Union. Please note that the figures and indicators of the income statement as of June 30, 2024 as well as the cash flow statement are compared with the corresponding values referring only to the Parent Company as of June 30, 2023 since the half-yearly financial report is being drawn up for the first time on a consolidated basis following the acquisitions of the controlled companies which occurred in the second half of the previous financial year.
REVENUES
In the first half of 2024, FUM achieved Total revenues and other income equal to Euro 43.7 million compared to Euro 37.8 million for the six months ended June 30, 2023 (+16).
In particular, for the six months ended June 30, 2024 revenues made in Italy reached Euro 16.7 million, decreasing by 3.6% compared to the same period of 2023, but still representing 38.9% of total revenues for the period.
Revenues in EMEA in the first half of 2024 amounted to Euro 24.9 million, an increase compared to 23.7 million in the same period of 2023.
Revenues in Asia amounted to Euro 9.0 milion, a slight decrease compared to Euro 9.7 milion in the same period of 2023. The result achieved is really important considering that the area has now become the second geographical destination for the products sold by the Company (representing approximately 21% of total revenues for the period).
In the first half of 2024, significant results were also achieved in markets such as North America (revenues equal to Euro 7.1 million), Australia (revenues equal to Euro 1.4 million ), South America and Africa (revenues equal to approx. Euro 0.2 million respectively), which were able to offset the decrease in the Asian market described above.
OPERATING RESULT AND NON-IFRS MEASURES
For the six months ended June 30, 2024 the EBITDA was equal to Euro 15.3 million compared to Euro 13.2 million for the six months ended June 30, 2023 (+16.2%). The growth is essentially linked to an increase in revenues.
The EBITDA Margin for the six months ended June 30, 2024 was 35.0% compared to 34.8% for the six months ended June 30, 2023, with substantial stability in the margins.
The Operating result was equal to Euro 10.9 million compared to Euro 9.9 million for same period of the previous year (+10.1%)
The Profit for the period was equal to Euro 7.6 million (-5.1%) compared to Euro 8.1 million for the same period of the previous year, mainly affected by the increase in financial charges incurred in the half-year following the growth in rates recorded on the market starting from the second half of 2023.
Net Financial Indebtedness as of June 30, 2024 was equal to Euro 31.1 million compared to Euro 29.4 million as of December 31, 2023.
Outlook
The persistence of turbulent conditions in the international scenario, first and foremost the Russian- Ukrainian and Israeli-Palestinian conflicts, generate a climate of uncertainty that undoubtedly does not facilitate business development, although at the moment there are no direct impacts of the various crisis situations at an international level.
Following the acquisition of Marmoles Man S.r.l. and thanks to the synergies created with it both in terms of product and geographically, the Group has begun to operate with an integrated commercial strategy that has already been giving important results since the first months.
Thanks to the acquisition of control over the Group's activities in Australia, a further growth is expected in this area considered to be strategically important and with excellent growth margins.
* * *
This press release is available on the Company's website https://www.fum.it/en/investors/price-sensitive-press-release/and at the authorised storage mechanism EMARKET STORAGE
(www.emarketstorage.com).
* * *
The half-yearly financial report as at 30 June 2024 will be made available to the public at the Company's registered office, as well as on the website https://www.fum.it/en/investors/financial- documents/.
***
Franchi Umberto Marmi, established in 1971, is a leader in the processing and marketing of blocks and slabs of Carrara marble, a natural stone that perfectly embodies Italian craftsmanship and luxury, with special characteristics that make it unique in Italy and in the rest of the world.
Contacts | ||
Franchi Umberto Marmi S.p.A. | IMI - Intesa Sanpaolo | Image Building: |
Euronext Growth Advisor | Media Relations | |
Via del Bravo n. 14 | Largo Mattioli 3 | Rafaella Casula |
54033 Carrara (MS) | 20121 Milano | Tel: +39 348 306 7877 |
Tel: +39 0585 70057 | Tel. +39 02 89011300 | |
investor@fum.it | franchi-egm@intesasanpaolo.com | franchi@imagebuilding.it |
Corporate website: www.fum.it |
INTERIM CONSOLIDATED INCOME STATEMENT AS OF JUNE 30, 2024
(Amounts in Euro) | June 30, 2024 | June 30, 2023 |
Consolidated | Separate* | |
Revenues | 42,828,580 | 37,642,538 |
Other Income | 872,225 | 152,546 |
Total revenues and other income | 43,700,805 | 37,795,084 |
Purchase of raw materials, consumables, goods and changes in inventory | (18.944.457) | (16,010,022) |
Costs for services | (7,210,243) | (6,007,563) |
Personnel costs | (2.020.447) | (1,676,170) |
Other operating costs | (151.842) | (97,543) |
Amortization | (4.376.243) | (3,254,703) |
Impairment of trade receivables | (602.867) | (392,379) |
Allocations to provisions for risks and charges | - | (342,238) |
Loss from investments accounted for using the equity method* | 570,336 | (91.500) |
Impairment of investments | (50.000) | (13,067) |
Operating result | 10,915,042 | 9,909,898 |
Financial income | 515,959 | 1,675,149 |
Financial expenses | (812.704) | (247,621) |
Foreign exchange (losses)/gains | 57,149 | (36,201) |
Profit before taxes | 10,675,446 | 11,301,225 |
Income taxes | (3.038.173) | (3.250.783) |
Profit for the year | 7,637,273 | 8,050,442 |
Attributable to: | ||
Shareholders of the Parent Company | 7,185,820 | |
Non-controlling interests | 451,453 | |
Basic and diluted earnings per share | 0.22 | 0.25 |
*The values as of June 30, 2023 have been restated to take into account the net assets identified following the completion of the purchase price allocation process of the company FUM Australia Pty Ltd, acquired on February 28, 2023 and valued using the equity method, whose values had therefore not been included in the condensed half-year financial statements at June 30, 2023, in accordance with IFRS 3.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS OF JUNE 30, 2024
(Amounts in Euro) | June 30, 2024 | December 31, 2023 |
Intangible assets | 46,206,736 | 49,174,876 |
Property, plant and equipment | 44,420,153 | 44,775,076 |
Right-of-use assets | 1,426,187 | 1,498,011 |
Investments accounted for using the equity method | 5,345,866 | 4,776,507 |
Other non-current assets | 1,434,971 | 1,607,584 |
Deferred tax assets | 3,138,385 | 2,721,491 |
Total non-current assets | 101,972,298 | 104,553,545 |
Inventory | 33,190,321 | 31,200,367 |
Trade receivables | 42,731,335 | 33,375,713 |
Current financial assets | 2,520,382 | 2,308,888 |
Tax receivables | 119,843 | 5,013,115 |
Other current assets | 3,478,468 | 980,600 |
Cash and cash equivalents | 11,328,473 | 28,639,295 |
Total current assets | 93,368,822 | 101,517,978 |
Total assets | 195,341,121 | 206,071,523 |
Share capital | 6,923,626 | 6,923,626 |
Share Premium reserve | 68,740,552 | 68,740,552 |
Legal reserve | 1,384,725 | 1,384,725 |
Other reserves | 41,522,522 | 39,601,291 |
Equity attributable to the Shareholders of the Parent Company | 118,571,424 | 116,650,194 |
Equity attributable to the non-controlling interests | 4,713,413 | 4,227,362 |
Total Equity | 123,284,837 | 120,877,556 |
Non-current portion of borrowings | 26,759,088 | 30,125,681 |
Non-current lease liabilities | 1,464,314 | 1,477,207 |
Other non-current financial liabilities | 2,232,593 | 9,770,976 |
Defined benefit plan | 1,612,182 | 1,666,163 |
Deferred tax liabilities | 948,728 | 1,043,021 |
Other non-current liabilities | 1,788,600 | - |
Total non-current liabilities | 34,805,505 | 44,083,048 |
Current portion of borrowings | 9,229,617 | 9,384,192 |
Current leases liabilities | 66,705 | 78,569 |
Other current financial liabilities | 3,438,778 | 7,810,942 |
Trade Payables | 20,219,122 | 19,430,416 |
Tax and social security payables | 1,048,203 | 521,509 |
Other current liabilities | 3,248,354 | 3,885,291 |
Total current liabilities | 37,250,779 | 41,110,919 |
Total liabilities | 72,056,283 | 85,193,967 |
Total liabilities and equity | 195,341,121 | 206,071,523 |
CONSOLIDATED STATEMENT OF CASH FLOW AS OF JUNE 30, 2024
(Amounts in Euro) | ||
A. Cash flow from operating activities | June 30, 2024 | June 30, 2023 |
Profit for the year | 7,637,273 | 8,050,442 |
Income taxes | 3,038,173 | 3,250,784 |
Financial expenses/(income) | 296,745 | (1.427.528) |
Foreign exchange (losses)/gains | (57.149) | 0 |
Loss from investments accounted for using the equity method | (570.336) | 91,500 |
(Gains)/Losses on the disposal of assets | 102 | 0 |
Allocations to provisions for risks and employee benefits | 104,657 | 440,068 |
Depreciation and amortization of property, plant and equipment and intangible assets | 4,376,243 | 3,254,703 |
Impairment of trade receivables and inventories | 758,611 | 166,282 |
Impairment of investments | 50,000 | 13,067 |
Other adjustments for non-monetary items | 47,152 | 56,341 |
Operating cash flow before changes in Net Working Capital | 15,681,470 | 13,895,659 |
Changes in Net Working Capital | ||
Decrease/(increase) in inventories | (2.145.698) | 3.140.249 |
Decrease/(increase) in trade receivables | (9.784.626) | (6.034.036) |
(Decrease)/increase in trade payables | 760,536 | (4.127.582) |
Decrease/(increase) in other current assets | 1,744,013 | 261.501 |
(Decrease)/increase in other current and non-current liabilities | 548,931 | 203,965 |
Other changes in net working capital (tax receivables, tax and social security payables) | (1.824.660) | (448.901) |
Cash flow after changes in Net Working Capital | 4,979,965 | 6,890,855 |
Other monetary adjustments | ||
Interest cashed in/(paid) | (448.268) | 11,525 |
Income taxes (paid) | 0 | (4.530.668) |
Employee benefit (paid) | (156.869) | (133.767) |
Net cash flow from operating activities (A) | 4,374,827 | 2,237,946 |
B. Cash flow from investment activities | ||
Payments in property, plant and equipment | (1.113.022) | (1.193.871) |
Investments in subsidiaries | (80.000) | 0 |
Proceeds from disposal price of investments held for distribution | 100 | 0 |
Investments in other non-current assets | (0) | (1.482.280) |
Proceeds from disposal price of current and non-current financial assets | 0 | 42,891 |
Proceeds from disposal price of investment in Joint Venture | 0 | 271,162 |
Acquisition of investment in subsidiaries | 0 | (1,840,000) |
Net cash flow (used in) investment activities (B) | (1,192,923) | (4,202,098) |
C. Cash flows from financing activities | ||
Bank borrowings | 500,000 | 8,285 |
Repayments of borrowings | (3,772,207) | (2,688,962) |
Accrual/(repayments) of other financial liabilities | 476,860 | - |
Repayment of the deferred price for the acquisition of Ingegner Giulio Faggioni | (12,460,000) | 0 |
Repayments of lease liabilities | (39,493) | (15,113) |
Dividends paid | (5,205,542) | (9,482,457) |
Net cash flow (used in) financing activities (C) | (20,500,382) | (12,178,247) |
Net (decrease)/increase in cash and cash equivalents (A + -B + -C) | (17,318,477) | (14,142,400) |
Cash and cash equivalents as of January 1 | 28,639,295 | 29,402,253 |
Effects of exchange rates | 7,655 | - |
Cash and cash equivalents as of June 30 | 11,328,473 | 15,259,853 |
*The values as of June 30, 2023 have been restated to take into account the net assets identified following the completion of the purchase price allocation process of the company FUM Australia Pty Ltd, acquired on February 28, 2023 and valued using the equity method, whose values had therefore not been included in the condensed half-year financial statements at June 30, 2023, in accordance with IFRS 3.