PIOVAN S.P.A. Q1 2024
FINANCIAL RESULTS PRESENTATION
15th May 2024
Q1 2024 KEY HIGHLIGHTS
PIOVAN GROUP AT A GLANCE - KEY FACTS AND FIGURES
• | Engineering, development and | Q1 2024 LTM Key Financials (incl. 2 months of NuVu) | |||||
What | installation of customized automation | ||||||
Revenues | Adj. EBITDA | EBIT | Net Income | Cash Conv.4 | |||
we do | for production w/ virgin and recycled | ||||||
polymers, food powders and creams | |||||||
• Global leader in technical polymers and | |
Applications | recycled plastic |
• Growing presence in food and industrial | |
applications (e.g. powder ingredients) | |
• Global and diversified customer base | |
Our | across several end-markets |
customers | • >7,100 customers1 |
• 14 manufacturing sites in 4 continents | |
Global | • 43 services & sales companies |
footprint | worldwide as of 31 March 2024 |
- 70+ countries covered
-
C. 3.6% of Revenues invested in R&D
Innovation and Engineering3
DNA | • 294 dedicated employees3 |
€565.4m | €79.4m | €65.0m | €54.5m |
(14.0% Margin) | (11.5% Margin) | (9.6% Margin) | |
+16.9% | +15.1% | +13.5% | +17.2% |
CAGR vs. FY 2017 | CAGR vs. FY 2017 | CAGR vs. FY 2017 | CAGR vs. FY 2017 |
Q1 2024 Revenues Breakdown2 | ||
by Geography | by Segment | |
South | Italy | |
America | Services | |
3% | 8% | 16% |
Food & Industrial | ||
North | EMEA | Applications 8% |
America | 23% |
54%
Asia
92%12% International
~94.5%
ca 0.8%
Recurring Capex /
Revenues
Technical
Polymers 75%
Source: Company information
1In 2023 above 1.000€ T/O. 2 Excluding other sales & other income. 3As of FY 2023. 4Defined as Adj. EBITDA - Recurring Capex / Adj. EBITDA.
3
Q1 2024 KEY HIGHLIGHTS
Exhibitions in China and US showcasing the new brand policy with good customer participation levels
Launched strategic initiative to shape global division on Heat transfer/Chiller solutions under the Thermal Care brand
In Feb-2024, reached 51% stake in Nu-Vu Conair paving the way for future growth opportunities in the strategic Indian market
In Apr-2024, paid 100% of IPEG earn-out equal to $21.8m thanks to the significant overperformance vs. contractual targets
J. G. Erkert appointed as the new N. America CEO in lieu of K. Winstead, who will be retiring in June after 36 years in the group
Approved first set of ambitious ESG targets designed to guide the Group towards a more sustainable and responsible future
Condenso nominated finalist in the 'Recycling Machinery Innovation of the Year' category of the Plastics Recycling Awards Europe 24
4
CONDENSO - PLASTICS RECYCLING AWARDS EUROPE 2024
Condenso has been selected as one of the finalists in the
Recycling Machinery
Innovation category of the
prestigious Plastics Recycling Awards Europe 2024, that aims to promote the commitment to sustainability particularly in the plastic materials recycling sector.
5
Source: Company information
REBOUND IN FOOD, GROWTH IN SERVICES AND NUVU CONSOLIDATION CONTRIBUTE TO MAINTAINING A FLAT PERFORMANCE IN Q124 VERSUS A PARTICULARLY STRONG Q1 2023
Revenues by Application (€m)1 | Revenues by Geography (€m)1 |
Q1 24 vs. Q1 23 (3.6)% | YoY Perf. | Q1 24 vs. Q1 23 (3.6)% | YoY Perf. | ||||
141,1 | 136,0 | 141,1 | 136,0 | ||||
S. America | 4,7 | ||||||
Services | 21,4 | 3,9 | (16.0)% | ||||
21,9 | +2.4% | (3,4%) | |||||
(15,4%) | (2,9%) | ||||||
Food & | |||||||
(16,4%) | |||||||
Ind. Appl. | 8,4 | +33.4% | |||||
(6,1%) | 11,3 | ||||||
72,4 | |||||||
(8,5%) | N. America | 72,7 | |||||
(52,1%) | +0.5% | ||||||
(54,5%) | |||||||
Technical | 109,1 | 100,3 | (8.0)% | Asia | 15,8 (11,4%) | 15,6 (11,7%) | (0.8)% |
Polymers | (78,5%) | ||||||
(75,1%) | |||||||
EMEA | 46,1 | 41,2 | (10.6)% | ||||
(33,2%) | (30,9%) | ||||||
Q1 2023 | Q1 2024 | Q1 2023 | Q1 2024 |
Indicates other revenue and income (c. €2.2m in Q1 2023 and €2.5m in Q1 2024)
SOURCE: COMPANY INFORMATION
1 REVENUES % BREAKDOWN EXCLUDES OTHER REVENUE AND INCOME.
Comments
ORGANIC REVENUES:Excluding the contribution of NuVu Revenues would have been €132.1m, (6.4)% YoY
FX ANALYSIS:Revenues (excl. other rev. and income) at constant FX would have been €1.4m higher for a decline of 2.9% YoY
BY APPLICATION
- Technical Polymers shows an 8.0% decline generalized across all end markets due to a relative weak market impacted by the continued high interest rate environment which is penalizing particularly packaging and consumer goods sectors. Recycling market also shows a decline due to the uncertainty in regulations (now surpassed by recent EU decisions) which has limited customers' investments in the sector during the 2H 2023
- Food & Industrial Applications showing a rebound vs. Q1 2023 thanks to a solid order collection in 2H 2023 and Q1 2024, which is expected to be invoiced in 2H 2024
- Services up by 2.4% confirming the success of the Group's plans in growing the sector
BY GEOGRAPHY
- N. America presents stable performance particularly supported by the evolution of the Group in Mexico and to the stability of automotive sector in the area
- EMEA performance limited by timing of the development of certain orders and by a temporary decline in recycling business as illustrated above
- Asia benefits from the contribution of NuVu which adds approx. €4.0m in the region. Organically the region has been impacted by the relocation of the Chinese plant to a temporary location
- S. America performance reflects general contraction in demand
6
Q1 2024 PERFORMANCE CONFIRMS CONTINUED GROWTH IN SERVICES AND REBOUND IN FOOD. GOOD RESULTS IN AUTOMOTIVE SUSTAINS PERFORMANCE IN TECH. POLYMERS
Technical Polymers
Packaging | Consumer & | Construction & | Automotive & | |||
Technical | Compounds | Industrial | ||||
As a percentage of Q1 2024 Revenues (in brackets - Q1 2023 figures)
Food &
Industrial
Applications
Services
24.0% (25.2%)
Preforms - PET | Rigid |
24.6% (25.6%)
Fibers
17.6% (18.8%)
Recycling & Compound
9.0% (9.0%)
8.4% (6.1%)
16.4% (15.4%)
Medical
Thermoforming
Film
Pipes & Cables
Tech Parts
SOURCE: COMPANY INFORMATION
7
IMPROVEMENT IN PROFITABILITY DESPITE NEGATIVE OPERATING LEVERAGE EFFECT DEMONSTRATES DISCIPLINE IN PRICING AND BENEFITS OF INTEGRATION
Contribution Margin | Adj. EBITDA | EBIT | Adj. Net Income | |||
€m and Margin | €m and Margin | €m and Margin | €m and Margin |
41.7% | 45.0% | 11.2% | 12.0% | 8.7% | 9.3% | 5.9% | 7.0% |
58,8 | 61,1 | 9.4% | 10.0% | ||||
16,3 | |||||||
15,8 | |||||||
13,3 | 13,6 | ||||||
8,3 | 9,5 | ||||||
12,312,6
Q1 2023 | Q1 2024 |
Q1 2023 | Q1 2024 |
Q1 2023 | Q1 2024 |
: excluding PPA effects |
Q1 2023 | Q1 2024 |
- Excluding the contribution of NuVu
Contribution Margin €59.8m (45.2% on total revenues
- Excluding the contribution of NuVu Adj.
EBITDA would have been €15.7m (11.9%
EBITDA Margin) - Non-recurringcosts refer to acquisitions costs and expenses related to reorganizations and integration processes
8
- PPA effect in both Q1 2023 and Q1 2024 equal to approx. €1.0m
- Recurring PPA effect expected to be in the region of USD 4.2m per annum
-
Net Income adjusted to reflect i) one-off costs, ii) the impact of Toba deconsolidation in 2023 (€1.4m) and iii) the positive impact of
NuVu consolidation effect in 2024 (approx. €6.0m net of fx effect)
SOURCE: COMPANY INFORMATION
Adj. EBITDA BRIDGE FROM Q1 2023 TO Q1 2024
Adj. EBITDA | Adj. EBITDA | ||
margin | 11.2% | 12.0% | margin |
15,8
Overall Contribution Margin Impact: +€2.3m
4,4
(2,1)
16,3
(1,6)(0,2)
Adj. EBITDA Q1 2023 | Δ Revenues | Δ Contribution Margin (Net of | Δ Personnel | Δ Other Costs | Adj. EBITDA Q1 2024 |
(@ constant margin) | Revenues Effect) |
SOURCE: COMPANY INFORMATION
9
NET DEBT WALK FROM DEC-23 TO MAR-24
Working Capital Seasonality (€m)
NWC | As a % of Revenue | |||||||||||||||||||||
61,6 | 55,7 | |||||||||||||||||||||
51,2 | 53,6 | 51,6 | ||||||||||||||||||||
41,1 | 36,0 | 41,2 | ||||||||||||||||||||
27,8 | 10,6 % | |||||||||||||||||||||
9,5 % | 9,7 % | |||||||||||||||||||||
9,1 % | ||||||||||||||||||||||
8,5 % | ||||||||||||||||||||||
5,8 % | 7,2 % | |||||||||||||||||||||
6,7 % | 6,6 % | |||||||||||||||||||||
€5m cash flow from operations
Mar-22 | Jun-22 | Sep-22 | Dec-22 | Mar-23 | Jun-23 | Sep-23 | Dec-23 | Mar-24 |
57,8
0,9
(16,0)
Overall change in WC: €(10,4)m
5,0 6,3
(0,9)
- Includes €2.7m impact from first NuVu consolidation
2,6 | 4,1 | 0,0 | 1,0 | |||
53,0 | 0,0 | 54,4 | ||||
(2,7) | ||||||
(3,5) | ||||||
• | Limited net interest | |||||
expenses thanks to low |
financing costs and
• Includes approx. €20m impact from
active cashIPEG earn-out paid in April 2024 management
Net Debt/ | EBITDA | Recurring | Change in | Change in | Other | Net Debt / | Non- | Taxes | Net Financial | Other Non | Dividends Rights of Use | NuVu | Net Debt/ |
(Cash) BoP | Capex | Work in | Trade | Changes in | (Cash) before | Recurring | Charges | Operating | Impact | Acquisition | (Cash) EoP | ||
Progress and Receivables / | WC | non op. items | Capex | Elements | Impact | ||||||||
Stocks | Payables | ||||||||||||
€(40.5)m | €(37.0)m | ||||||||||||
Ex. IFRS16 | Ex. IFRS16 |
SOURCE: COMPANY INFORMATION | 10 |
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Piovan S.p.A. published this content on 15 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 May 2024 11:28:13 UTC.
