H1 2024
Financial Results
Cavriago, 6th September 2024
H1 2024 confirms economic improvement of Green Transportation, while limited production level of Clean Tech Solutions influences negatively Group's result
Green
Transportation
(Automotive)
Clean Tech
Solutions
(Infrastructure)
Capital
Increase
- H1 2024 revenue stands at 102,5 M€, in line with previous year (-1,7% vs. H1 2023) but with a more favourable mix driven by an increase of volumes on AM1 and OEM-MHD2 and decrease of OEM-PC3
- Product marginality continue to improve in all segments, thanks to pricelist adjustments and efficiencies in the operations
- Strong management focus on Net Working Capital drives a significant reduction of Inventory; however, reduction of rescheduled trade payable and discontinuation of credit factoring cause a deterioration of NFP
- Backlog beginning of the year below the expectations and slow order intake in the first months of 2024 lead to a reduction of revenue vs. previous year (-22,9%vs. H1 2023);
- Volume's drop affect mainly traditional CNG business, while increasing orders of Oil&Gas and Hydrogen imply higher complexity in job execution and longer throughput time, leading to slower revenue recognition
- Despite stable incidence of raw material, low volumes lead to higher incidence of non-compressiblecosts (e.g. direct labor, engineering) causing a deterioration of product profitability
- Tight management of Net Working Capital mitigates financial impact on NFP, increased only by 0,9 M€
- H1 2024 financial structure does not reflectimpact of the financial optimization project, concluded with the agreements signed 1st august 2024 among company's majority Shareholders, Invitalia5 and financing banks, that will grant to the Company a capital increase of 40-45 M€ and the remodulation of debt instalments
- Major shareholder contribution to the capital increase will alreadybe at company's disposalin Q3 2024
(1) | Aftermarket (2) Medium and Heavy Duty (3) Passenger Car (4) Net Financial Position | 3 |
(5) | Invitalia - "Agenzia nazionale per lo sviluppo", acting as manager of the "Fondo salvaguardia imprese" promoted by MIMIT - Ministry of Enterprises and Made in Italy |
First half economic results show an almost null EBIDTA adj, leading to a Group's loss of 18,5 M€, in line with the previous year
Green | Clean Tech | LRG | ||||||||||
Transportation | Solutions | |||||||||||
M€; % | H1 2024 | H1 2024 | H1 2024 | H1 2023 | delta | delta % | ||||||
Revenues | 102,5 | 36,7 | 139,1 | 151,8 | -12,7 | -8,3% | ||||||
Adj. EBITDA | 0,7 | -0,7 | 0,1 | 3,9 | -3,9 | |||||||
% on rev. | 0,7% | -1,8% | 0,0% | 2,6% | ||||||||
EBITDA | -2,1 | -1,6 | -3,7 | -0,3 | ||||||||
-3,4 | ||||||||||||
% on rev. | -2,0% | -4,4% | -2,7% | -0,2% | ||||||||
EBIT | -8,5 | -3,0 | -11,5 | -8,8 | ||||||||
-2,7 | ||||||||||||
% on rev. | -8,3% | -8,1% | -8,3% | -5,8% | ||||||||
EBT | -18,0 | -15,6 | ||||||||||
-2,4 | ||||||||||||
% on rev. | -12,9% | -10,3% | ||||||||||
Net Result | -18,5 | -20,9 | ||||||||||
2,5 | ||||||||||||
Highlights
- Reduction of turnover vs. H1 2023 is mainly driven by Clean Tech Solutions, due to the low amount of backlog and order intake in the period
- Despite the improving performances of Green Transportation, Adjusted EBITDA remains almost null for both divisions, leading to a negative result after depreciation and financial charges
4
Green Transportation: despite a slight reduction of revenue, a more favorable product mix drives an increase of Adj. EBITDA
Green
Transportation
(Automotive)
M€ ; % | H1 2024 | H1 2023 | delta | delta % | ||||
Revenues | 102,5 | 104,3 | -1,8 | -1,7% | ||||
Adj. EBITDA | 0,7 | 0,2 | 0,6 | |||||
% on rev. | 0,7% | 0,2% | ||||||
EBIT | -8,5 | -10,4 | 1,9 | |||||
% on rev. | -8,3% | -9,9% | ||||||
M€ | H1 2024 | FY 2023 | ||||||
NWC | 48,9 | 38,1 | ||||||
NFP (1) | 106,5 | 82,0 | ||||||
Highlights
- Decrease of revenue with the main PC client (which has lower margin compared to other segments) is partly offset by increase of AM and OEM-MHD
- More favorable segment mix leads to an improvement of product marginality, and, despite higher fixed cost vs. H1 2023, to Adjusted EBITDA above previous year performances (+0,6 M€)
- Higher absorption of NWC is the main factor influencing NFP increase:
- Reduction of debt with suppliers
- Lower incidence of factor on credit collection
- Inventory reduction
(1) Net of IFRS 16, derivatives fair value effect and debt for share capital acquisition | 5 |
Clean Tech Solutions: lower Value of Production cause the significant deterioration of division's profitability in H1 2024
Clean Tech
Solutions
M€ ; % | H1 2024 | H1 2023 | delta | delta % | ||||
Revenues | 36,7 | 47,5 | -10,9 | -22,9% | ||||
Adj. EBITDA | -0,7 | 3,8 | -4,4 | |||||
% on rev. | -1,8% | 7,9% | ||||||
EBIT | -3,0 | 1,5 | -4,5 | |||||
% on rev. | -8,1% | 3,2% | ||||||
H1 2024 | FY 2023 | |||||||
NWC | 11,7 | 14,6 | ||||||
NFP (1) | 17,5 | 16,6 | ||||||
Highlights
-
Low Value of Production of equipment influence H1
2024 results, due to: - Backlog at the end of 2023 slightly lower than expectations (~2,5M€)
- Lower contribution from traditional (CNG) orders in both North America and Europe
- Slower revenue recognition, due to higher complexity and execution timing for projects in growing Oil&Gas and Hydrogen segments
- Lower than expected volumes cause a deterioration of marginality, due to increased incidence of non- compressible costs (e.g., direct labor, engineering);
- Impact of negative economic performances on cash is partly mitigated through tight control of net working capital, with positive results in terms of inventory reduction and credit collection
(1) Net of IFRS 16, derivatives fair value effect and debt for share capital acquisition | 6 |
NFP increase is mainly influenced by Net Working Capital increase in Green Transportation - improvement expected with financial optimization project
M€
NFP net of IFRS
16 and
derivatives and
debt for share
capital
acquisition of
MAP
Financial leases
(IFRS 16),
derivatives and
debt for share
capital
acquisition
NFP (1)
FY 2023 | H1 2024 | ||
47,1 | Cash liquidity (+) | ||
19,4 | Current Financial Assets (+) | ||
-145,7 | -143,3 | Long-Short term | |
Financial Debt (-) | |||
-98,6 | -123,9 | |||||||
-0,5 | ||||||||
-0,5 | Debt for share | |||||||
-10,8 | capital acquisItions (-) | |||||||
-12,9 | Financial Lease (-) | |||||||
Derivatives (+/-) | ||||||||
-0,1 | ||||||||
-0,5 | -11,4 | |||||||
-13,8 | ||||||||
22,9 | ||||||||
-135,3 | ||||||||
-112,4 | ||||||||
Highlights
- NFP (including reduction due to variation of financial leases) increases by 22,9 M€, mainly driven by increase of Net Working capital in Green Transportation (reduction of debt with suppliers and discontinuation of factoring for credit collection)
- Long and Short-term debt remains stable, with limited repayment planned in the short term, thanks to agreement signed with lenders following company's financial optimization project
- H1 2024 financial structure do not reflectyet the impact of financial optimization project, including a Capital Increase by the end of the year of 40-45M€, of which the portion invested by the majority shareholder will be already available in Q3
(1) Short and long terms debt are inclusive of amortized cost effect | 7 |
Landi Renzo S.p.A.
Headquarter
Via Nobel 2 - 42025 Corte Tegge
Cavriago (RE), Italy
www.landirenzogroup.com
www.landirenzo.com
WWW
Landi Renzo - Company profile
BOARD OF DIRECTORS
TOP MANAGERS
INVESTOR RELATIONS
Stefano Landi - Chairman
Sergio Iasi - Deputy Chairman
Annalisa Stupenengo - CEO
Andrea Landi - Director
Silvia Landi - Director
Massimo Lucchini - Director
Anna Maria Artoni - Independent Director
Sara Fornasiero - Independent Director
Pamela Morassi - Independent Director
Stefano Landi
Annalisa Stupenengo
Paolo Cilloni
Damiano Micelli
Federico Landi
Giorgio Nero
Chairman
CEO
CFO & IR
Group CTO
SVP AM Business
Head of Strategy and Business Development
Investor Relations Contacts:
Paolo Cilloni
Tel: +39 0522 9433
E-mail: ir@landi.it www.landirenzogroup.com
Fabio La Cava | Chief Transformation & People Officer |
SHARE INFORMATION
Euronext STAR Milan segment of Borsa Italiana
N. of shares outstanding: 225.000.000
Price as of 06/09/2024: €0,23
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CONSOLIDATED P&L
(Thousands of Euro) | ||||
CONSOLIDATED INCOME STATEMENT | 30/06/2024 | 30/06/2023 | ||
(Restated) | ||||
Revenues from sales and services | 139,142 | 151,805 | ||
Other revenues and income | 458 | 1,024 | ||
Cost of raw materials, consumables and goods and change in inventories | -84,737 | -94,405 | ||
Costs for services and use of third-party assets | -29,956 | -28,386 | ||
Personnel costs | -26,649 | -25,124 | ||
Allocations, w rite dow ns and other operating expenses | -1,962 | -5,226 | ||
Gross Operating Profit | -3,704 | -312 | ||
Amortization, depreciation and impairment | -7,770 | -8,511 | ||
Net Operating Profit | -11,474 | -8,823 | ||
Financial income | 531 | 447 | ||
Financial expenses | -6,048 | -5,399 | ||
Exchange gains (losses) | -257 | -1,624 | ||
Income (expenses) from hyperinflation | -812 | -212 | ||
Income (expenses) from equity investments | -548 | -27 | ||
Income (expenses) from joint venture measured using the equity method | 626 | 20 | ||
Profit (Loss) before tax | -17,982 | -15,618 | ||
Taxes | -479 | -5,316 | ||
Net profit (loss) for the Group and minority interests, including: | -18,461 | -20,934 | ||
Net profit (loss) attributable to non controlling interests | -1,733 | 21 | ||
Net profit (loss) attributable to the Group | -16,728 | -20,955 | ||
Basic earnings (loss) per share | -0.0743 | -0.0931 | ||
Diluted earnings (loss) per share | -0.0743 | -0.0931 | ||
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