(Alliance News) - Carel Industries Spa reported Thursday that consolidated revenues amounted to EUR146.4 million compared to EUR161.0 million as of March 31, 2023, down 9.0 percent.

Excluding the change in scope of consolidation related to Kiona and Eurotec of EUR7.3 million and the marginal negative exchange rate effect, the decline would have been 13 percent.

This decrease is attributable first of all to a contingent and nonrecurring element related to the significant contribution to revenues, in the first part of 2023, of the disposal of the backlog accumulated in previous quarters. In that period, in fact, the phenomenon of the shortage of electronic material had eased considerably, thus allowing the Group to increase the volumes produced and delivered. Added to this was an actual contraction in demand that affected some sectors, particularly in Europe.

Consolidated Ebitda as of March 31 was EUR26.7 million, down 20 percent from EUR33.4 million recorded in the same period of 2023. Profitability was 18.2 percent from 20.8 percent as of March 31, 2023. This performance reflects the negative revenue trend partly mitigated by some initiatives to contain discretionary expenses.

"Of note is the expected increase in investment in research and development, which exceeds 5 percent of revenues, with the aim of maintaining and strengthening the competitive position of leadership in innovation that has always marked the group's strategy," the company said.

Consolidated net income is EUR16.5, million and down 11 percent from EUR18.5 million as of March 31, 2023 and only partially reflects operating results due to particularly positive results from foreign exchange performance and the capital gain related to the acquisition of the remaining 49 percent of CFM's social capital. The tax rate is just above 22%, broadly in line with the same period last year.

The Consolidated Net Financial Position is negative by EUR78.0 million, including the accounting effect related to the application of IFRS16 amounting to EUR32.5 million. The increase from the figure recorded as of December 31, 2023, which was EUR35.7 million, is due to the acquisition of the remaining 49 percent of CFM's share capital. Excluding this element, the NFP is essentially unchanged compared to the end of 2023: cash generation more than covered, in fact, investments of about EUR5.4 million and the increase in working capital mainly due to seasonal effects.

"As for the remainder of the year, expectations are for gradual growth in performance, particularly in EMEA, in the second half of 2024, linked to a number of phenomena, including the recovery of the investment cycle in the refrigeration sector, the disposal of accumulated inventories in the heat pump supply chain, and the improvement in the European macroeconomic scenario. The basis of comparison with 2023 will also normalize in the second half of the year. For the second quarter, the scenario is not expected to change significantly, so the group expects consolidated revenues close to those of the first quarter of this year."

Carel Industries' stock is up 0.7 percent at EUR19.22 per share.

By Giuseppe Fabio Ciccomascolo, Alliance News senior reporter

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