REWAY GROUP S.P.A. ValueTrack | Update Report | 19 October 2023
Reway Group SPA
Sector: Infrastructures maintenance and reparation
Transformational deal xx
Reway Group (RWG) is a leading Italian company active in viaduct, tunnel and bridges rehabilitation, installation of safety and sound-absorbing barriers, seismic upgrading, and various other activities related to extraordinary maintenance of highways / roads.
Acquisition of 70% stake of Se.Gi.
RWG has signed the acquisition of a 70% stake of Se.Gi. SpA, Italian-based player active in the design, construction, and maintenance of large civil and industrial projects, with a focus on railway infrastructures. We appreciate the rationale behind this acquisition, that offers several key benefits:
- Sets RWG's entry into the "high margins" Railway infrastructures maintenance and reparation market;
- Significantly broadens the group's portfolio of certifications (SOA and RFI-SQ), which are the real entry barriers in the railways sector;
- It gives a boost to operating profitability (EBITDA Margin up by ca. 200bps as Se.Gi boasts ca. 30% margin) and bottom line (Adj. EPS up by ca. 27% average in 2024E-25E), while maintaining Group's Net Debt / EBITDA ratio relatively under control (2024E at 1.0x as 100% equity value of Se.Gi stands at €90mn, ca. 6.0x EV/EBITDA plus NWC adjustments).
"Old perimeter". Backlog at all time high level
At the end of September RWG released its full set of 1H23 figures. Order intake and net backlog end of period stood at €192.3mn and € 505mn respectively, significantly overperforming our previous full-year estimates of €189mn and €425mn respectively. As far as P&L and BS are concerned, they were affected by seasonality, with more works being postponed to 2H.
Adding Se.Gi to estimates
In FY24E we estimate Se.Gi. to add to RWG figures ca. €54mn revenues, ca. €15mn EBITDA and €69mn Net Debt. Our new 2023EPF-25E estimates are: 1) Revenues up at 23.0% CAGR22A-25E, to ca. €218.3mn in 2025E; 2) EBITDA and EBIT margins post Se.Gi. contribution at 21.3% and 19.5% respectively in 2025E; 3) Net Debt reducing to €14.9mn in 2025E.
Fair value at €5.77 per share (from €4.75)
Taking into account the value accretion from Se.Gi deal, we update our fair value at € 5.77 per share (from €4.75), as average of DCF (€6.18 p.s.) and Peers' analysis (€5.36 p.s.). At €5.77 fair value, Reway Group would trade at 6.9x EV/EBITDA, 7.7x EV/EBITA, 11.6x Adj. P/E 2024E multiples.
VALUETRACK
Analysts Marco Greco +39 02 80886654 marco.greco@value-track.com Luca Bernini
luca.bernini@value-track.com
Fair Value (€) | 5.77 | ||
Market Price (€) | 3.84 | ||
Market Cap. (€m) | 147.8 | ||
KEY FINANCIALS (€m) | 2022PF | 2023E | 2024E |
VALUE OF PRODUCTION | 110.5 | 133.4 | 199.6 |
EBITDA | 19.6 | 24.3 | 42.4 |
EBITA | 17.9 | 20.6 | 37.8 |
ADJ. NET PROFIT | 11.6 | 14.1 | 19.2 |
OPFCF a.t. | 8.0 | 5.0 | 40.4 |
NET INV. CAP. | 42.6 | 146.8 | 127.6 |
EQUITY | 38.7 | 69.0 | 85.7 |
NET FIN. POS. | -3.9 | -77.8 | -41.9 |
Source: Reway Group S.p.A. (historical figures), | |||
Value Track (2023E-24E estimates), | |||
KEY RATIOS | 2022PF | 2023E | 2024E |
EBITDA MARGIN (%) | 17.7 | 18.2 | 21.2 |
EBITA MARGIN (%) | 16.2 | 15.4 | 18.9 |
NET DEBT / EBITDA (x) | 0.2 | 2.1(*) | 1.0 |
NET DEBT / EQUITY (x) | 0.1 | 1.0 | 0.5 |
EV/SALES (x) | 1.3 | 1.5(*) | 1.1 |
EV/EBITDA (x) | 7.7 | 6.8(*) | 5.1 |
EV/EBITA (x). | 8.5 | 7.9(*) | 5.7 |
P/E ADJ. (x) | 12.7 | 7.5(*) | 7.7 |
Source: Reway Group S.p.A. (historical figures),
Value Track (2023E-24E estimates) (*)12 months Se.Gi.
STOCK DATA
FAIR VALUE (€) | 5.77 |
MARKET PRICE (€) | 3.84 |
SHS. OUT. (m) | 38.5 |
MARKET CAP. (€m) | 147.8 |
FREE FLOAT (%) | 16.8 |
AVG. -20D VOL. ('000) | 12,605 |
RIC / BBG | RWY.MI / RWY IM |
52 WK RANGE | 3.10-4.55 |
Source: Stock Market Data |
ValueTrack | www.value-track.com| NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES, CANADA, JAPAN OR AUSTRALIA
Reway Group SpA | Update Report | 19 October 2023
Business Description
Reway Group (RWG) is a leading Italian company active in: 1) Viaduct and tunnel rehabilitation; 2) Installation of safety and sound-absorbing barriers;
- Seismic upgrading of viaducts; 4) Various other activities related to extraordinary maintenance of highways / roads.
RWG is the only Italian player covering all stages of the restoration chain and offering a "One stop shop" service, highly valued from clients who only have to deal with a single counterpart.
VALUETRACK
Shareholders Structure
Others,
16.8%
-
Casillo,
7.3%
Elocyn | Luccini |
L.t.d., | S.r.l., |
11.0% | 64.9% |
Source: Reway Group SpA
Key Financials
€mn | 2022A | 2023E | 2024E | 2025E |
Net Revenues | 92.1 | 132.4 | 198.6 | 218.3 |
Chg. % YoY | 0.0% | 43.7% | 50.1% | 9.9% |
EBITDA | 16.9 | 24.3 | 42.4 | 46.8 |
EBITDA Margin (%) | 18.3% | 18.4% | 21.3% | 21.4% |
EBITA | 17.9 | 20.6 | 37.8 | 42.7 |
EBIT Margin (%) | 16.2% | 15.4% | 18.9% | 19.5% |
Net Profit | 8.4 | 11.6 | 13.3 | 17.2 |
Chg. % YoY | 0.0% | 37.8% | 15.2% | 29.1% |
Adjusted Net Profit | 11.6 | 14.1 | 19.2 | 23.0 |
Chg. % YoY | nm | 35.7% | 36.2% | 20.3% |
Net Fin. Position | -3.9 | -77.8 | -41.9 | -14.9 |
Net Fin. Pos. / EBITDA (x) | 0.5 | 2.1(*) | 1.0 | 0.3 |
Capex | -1.5 | -6.0 | -6.5 | -7.1 |
OpFCF b.t. | 8.5 | 10.4 | 49.5 | 41.5 |
OpFCF b.t. as % of EBITDA | 50.2% | 42.6% | 116.9% | 88.6% |
Source: Reway Group SpA (historical figures), Value Track (estimates), (*) Se.Gi. 12 months
Investment case
Strengths / Opportunities
- High visibility of future business resulting from the combination of market growth rate and works assignment defined on good notice;
- Strongly cash generative business model with low capital requirements;
- Italian road infrastructure benefitting from multi-year investment plans.
Weaknesses / Risks
- Revenue concentration on a very few clients, with top 3 customers accounting for ca. 95% of FY22PF revenues;
- Limited operating leverage due to the high incidence of costs that are proportional to VoP;
- Exposure to volatility of raw materials prices (20% of VoP).
FY22 Revenues by geography
TLS, 6.1%
SOTECO,
18.2%
MGA,
75.6%
Source: Reway Group SpA
FY22 Revenues by business line
Barriers, 7%
Viaducts,
40%Seismic, 2%
Others, 4%
Tunnels,
47%
Source: Reway Group SpA
Stock multiples @ €5.77 Fair Value
2023PFE | 2024E | |
EV / SALES (x) | 1.9 | 1.5 |
EV / EBITDA (x) | 8.8 | 6.9 |
EV / EBITA (x) | 10.2 | 7.7 |
EV / CAP.EMP. (x) | nm | 2.3 |
OpFCF Yield (%) | 11.3 | 17.5 |
P / E Adj. (x) | 11.3 | 11.6 |
P / BV (x) | 3.2 | 2.7 |
Div. Yield. (%) | 0.0 | 0.0 |
Source: Value Track
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Reway Group SpA | Update Report | 19 October 2023
VALUETRACK
Se.Gi. SpA's Acquisition
Se.Gi. at a glance
Reway Group has signed a contract for the acquisition of a 70% stake in Se.Gi. SpA ("Se.Gi."), Italian-based player active in the field of executive design, construction, and maintenance of large civil and industrial projects, with a specific focus on railway infrastructures.
Se.Gi is a company with 100 employees, €210m n backlog, that in 2022FY recorded €50mn revenues and €14.6mn EBITDA (27.3% EBITDA margin, average EBITDA margin -5yy ca. 35%), active in the following business segments:
- Railway infrastructures: the company's core business is related to rail construction and maintenance. Indeed, the company is registered within the qualification system of the Italian railway network, and thus enabled to undertake civil works within railway tunnels and on operational railway lines.
- Public infrastructures: In addition to its railway endeavors, the company actively manages a multitude of construction projects within the domain of civil and public infrastructure, such as: subsurface works, structural steel construction, special structures, environmental reclamation activities, extraordinary maintenance of road infrastructure and related hydraulic projects.
Se.Gi: some projects accomplished in Railway Segment
Source: Se.Gi.
Se.Gi: some projects accomplished in Public infrastructure Segment
Source: Se.Gi.
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Reway Group SpA | Update Report | 19 October 2023
VALUETRACK
Its key assets / competences are the following:
- A highly qualified technical and operational team, including engineers, surveyors, and specialized technicians, with extensive and continuously updated expertise;
- A vast and efficient fleet of machinery/equipment capable of operating on both roads and railway tracks, supporting activities such as cutting, drilling, welding, assembly and anchoring;
- Extensive proprietary operational spaces, including: 1) Over 8,000 sqm of industrial and commercial warehouses for the storage of vehicles, equipment, and materials; 2) Some mechanical workshops for the maintenance of vehicles and equipment;
- A comprehensive set of SOA/ISO/RFI-SQ certifications: RFI in particular, are those necessarily required to operate in the Railway sector.
Reway Group: SOA and RFI Certifications with the new perimeter
Category | Se.Gi. | MGA | Soteco | TLS |
OG 1 | VII | |||
OG 2 | II | |||
OG 3 | VIII | VIII | IV | III Bis |
OG 4 | VIII | VIII | V | - |
OG 6 | IV Bis | |||
OG 8 | IV | II | - | - |
OG 10 | II | |||
OG 11 | V | |||
OG 12 | Ill Bis | |||
OS 4 | Ill Bis | |||
OS 5 | II | |||
OS7 | - | I | - | - |
OS 8 | VI | - | II | - |
OS11 | - | IV Bis | - | IV |
OS 19 | II | |||
OS 21 | VII | IV | - | - |
OS 23 | Ill Bis | III Bis | - | - |
OS 24 | IV Bis | |||
OS29 | IV Bis | |||
OS 33 | III | |||
OS 34 | IV Bis | I | VIII | - |
OS12A | III | III Bis | - | - |
OS12B | V | - | - | - |
OS18A | V | - | III Bis | - |
OS18B | I | - | - | - |
SQ 007 | I |
SQ11-LOC001VII
SQ11-LOC002VIII
SQ12-OMM-ANA
SQ12-OMM-BNA
Source: Reway Group, Se.Gi Annual Report
Description
Civil and industrial buildings
Restoration and maintenance of listed buildings Highways, Bridges, Viaducts, Railways, Subways Subsurface works
Aqueducts, gas, oil pipelines and drainage works River, defense, hydraulic and reclamation works Energy pylons and public lighting Technological installations
Environmental reclamation works Electromechanical conveyor systems Pneumatic and anti-intrusion installations General works finishing Waterproofing works
Special structural equipment
Telecommunications
Special structural works
Demolition of works
Green and street furniture
Railway equipment
Special roofing
Noise abatement systems for mobility infrastructure Safety road barriers
Rockfall barriers and snow barriers
Structural steel components
Curtain walls component
Control of vegetation in railways areas
Civil works in railways areas
Civil works in tunnels
Maintenance / Control of working vehicles up to 17T Maintenance / Control of working vehicles up to 40T
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Reway Group SpA | Update Report | 19 October 2023
VALUETRACK
Furthermore, the acquisition of Se.Gi. brings a new portfolio of high-profile Railway clients to the Group, out of which the most important one is, indeed, RFI (Ferrovie dello Stato Italiane Group's company responsible for managing Italian railway infrastructure).
Se.Gi: main clients
Source: Se.Gi.
Terms of the deal
- Entirely cash made purchase of 70% of Se.Gi. share capital for a price of ca. €63mn, implying a Total Equity Value of €90mn for the 100% of the Target's share capital;
- Up to €47mn further cash out related to Trade Receivables due to be cashed in in 2024E, and subject to their actual cash in, i.e. Reway Group will pari-passutransfer the cash in from existing Trade Receivables to the seller;
- An additional cash endowment of €14mn to finance working capital;
- Put & Call option on the remaining 30% of share capital to be exercised after the approval of Se.Gi. 2025FY figures, with a cash out (if exercised) of €27mn.
Accordingly, the transfer of Se.Gi. is actually Debt free / Cash free; however, from an accounting perspective, it shows a net debt of €33mn, which arises due to the difference between aforementioned receivables and cash endowment.
Based on our estimates for Se.Gi 2023E financials, (ca. €50mn revenues, ca. €15mn EBITDA) and net of such accounting effects (no Debt/Cash), we calculate Se.Gi to be valued ca. 1.8x EV/Sales and ca. 6.0x EV/EBITDA FY23E.
We note that the deal has been classified as "reverse merger", so an Information Memorandum will be published soon.
Closing of the deal is expect in the first days of November.
Deal rationale
We recognize the strategic rationale behind this acquisition, which aligns with the Group's growth strategy outlined during the IPO phase and offers several key benefits:
- Sets Reway's entry into the national Railway construction and maintenance market (€110bn investments forecasted in the next 10 years) and gives some additional exposure to contiguous sectors (e.g. civil and maritime engineering projects);
- Significantly broadens the group's SOA portfolio, allowing for participation in larger tenders as well as bring about significant synergies in bidding phase.
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Reway Group SpA | Update Report | 19 October 2023
VALUETRACK
"Old perimeter" 1H23 results
Back at the end of September, RWG has released its 1H 23 figures. This is the first "interim" financial release since the company went public on the stock market and need, in our view, to be decoded taking into account the peculiar seasonality of the upcoming business.
Orders intake and backlog
Reway Group 1H23 order intake and net backlog in-house (namely secured future revenues from already won-tenders) as of 30 June 2023, came out above our full year's estimates.
- Order intake stood at €192.3mn in 1H23;
- Net backlog (considering orders already delivered) at €505.5mn.
1H23 results affected by uneven seasonality of 2023 business volumes
RWG is adapting its operational dynamics in response to institutional and regulatory push aimed at reducing traffic congestion during peak periods. This push has led to a new seasonal pattern to the Company's operations, with the most lucrative of yearly works (e.g. tunnel rehabilitation, which requires road closures) being executed (and invoiced) in the second half of the year, just after the summer period.
VoP in line with 1H22, revenue mix substantially unchanged
Value of Production at €54.7mn vs. € 56.2mn of 1H22 (-2.6% y/y). This decline is linked to the aforementioned highway concessionaires' policies, which moved disruptive construction works to less congested periods, causing a shift in the Group's activities toward the second half of the year.
The consolidated Value of Production includes:
- €53.8mn Sales revenues, with a substantially unchanged mix (detailed in the table below);
- €0.3mn Grants, related to incentives for investments in interconnected and automated machinery falling under the category of "Industry 4.0" assets;
- €0.6mn Other Revenues, primarily composed of recharges for seconded personnel.
Reway Group: Revenues from Sales by Business Units - 1H22 and 1H23
1H2022 | 1H2023 | |
6% | 8% | |
19% | 16% | |
€55.7mn | €53.8mn | |
75% | 76% | |
MGA SOTECO | TLS | MGA SOTECO TLS |
Source: Reway Group, Value Track Analysis
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Reway Group SpA | Update Report | 19 October 2023
VALUETRACK
Margins mildly affected, yet cost structure is under control
1H23 EBITDA amounted to €10.6mn, which is essentially in line with the figure as of June 30, 2022, with a margin that slightly improves to 19.4%.
In terms of OpEx, the major swing y/y was witnessed by:
- Labour Cost (+13.5%), primarily attributable to the group's efforts toward strengthening its managerial line;
- Cost of Rent (+32.1%), driven by reduced subcontracting and the need to compensate for resources typically supplied by subcontractors;
- Cost of Services (-14.8%), counterbalancing the previous effect and reflecting increasing in-house work.
1H23 EBIT stood at €8.9mn vs. €9.7mn as of 30 June 2022 and broadly in line with 1H, with an EBIT Margin of 16% (compared to 17% as of June 30, 2022).
In absolute terms, the result is influenced by €1.8mn D&A related to significant investments in tangible assets, as well as goodwill generated by the acquisition of minority shares in MGA, Soteco, and TLS, the companies controlled by Reway Group;
1H23 Net profit stood at € 5.0mn vs € 5.9mn as of June 2022, both net of ca.€0.9mn goodwill amortization charge), as a results of the above and flattish financial charges and taxes.
Reway Group: Profit & Loss 1H22 - 2H22 - 1H23E
(€mn) | 1H22 | 2H22 | 1H23 | ∆ YoY |
Value of Production | 56.2 | 54.4 | 54.7 | -2.6% |
Raw Materials, Δ Inventory (Finished Goods) | -14.8 | -13.8 | -12.9 | -12.7% |
Gross Profit | 41.4 | 40.6 | 41.8 | 1.0% |
Gross Margin (%) | 73.7% | 74.7% | 76.4% | 273bps |
Costs of Services | -16.2 | -16.1 | -13.8 | -14.8% |
Costs of Rent | -4.7 | -5.6 | -6.2 | 32.1% |
G&A | -0.3 | -0.8 | -0.3 | -4.2% |
Labour Costs | -9.6 | -9.2 | -11.0 | 13.5% |
EBITDA | 10.6 | 9.0 | 10.6 | 0.1% |
EBITDA Margin (%) | 18.9% | 16.5% | 19.4% | 52bps |
D&A (excl. goodwill) | -0.6 | -0.9 | -1.6 | 171.4% |
Provisions | -0.3 | 0.0 | -0.1 | -43.7% |
EBITA | 9.8 | 8.1 | 8.9 | -9.3% |
EBITA Margin (%) | 17.4% | 14.9% | 16.2% | -120bps |
Goodwill amortization | -0.9 | -0.8 | 0.0 | -100.0% |
EBIT | 8.9 | 7.3 | 8.9 | -0.2% |
Interest Expenses | -0.1 | -0.1 | -0.1 | 142.4% |
Pre-Tax Profit | 8.8 | 7.2 | 8.7 | -1.2% |
Taxes | -2.9 | -3.2 | -2.9 | -0.2% |
Minorities | 0.0 | 0.0 | 0.0 | nm |
Net Profit | 5.9 | 4.0 | 5.8 | -1.7% |
Adjusted Net Profit | 10.5% | 7.4% | 10.6% | 10bps |
Source: Reway Group, Value Track Analysis
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Reway Group SpA | Update Report | 19 October 2023
VALUETRACK
Cash Flow & Balance Sheet
At Balance Sheet level we note:
- Net fixed assets at € 24.1mn, an increase compared to €22.9mn as of Dec 2022, with the difference mainly attributable €3.2mn investments in tangible assets and some goodwill-related accounting effect;
- Working capital at € 35.1mn (vs. € 21.2mn in Dec 2022), direct consequence of a new customer pool which pays with more dilated collection times;
- Net Cash at €4.8mn vs Net Debt of €3.9mn as of Dec 2022, with IPO proceed substantially fully absorbed by working capital requirements and Capex.
Reway Group: Balance Sheet 1H22 - 2H22 - 1H23E
(€mn, IT GAAP) | 1H22 | 2H22 | 1H23 |
Net Fixed Assets (incl. Goodwill) | 22.6 | 22.9 | 24.1 |
Net Working Capital | 29.4 | 21.2 | 35.1 |
Provisions | 1.3 | 1.6 | 1.7 |
Total Capital Employed | 50.7 | 42.6 | 57.4 |
Group Net Equity | 34.4 | 38.7 | 62.2 |
Net Fin. Position [i.e. Net Debt (-) Cash (+)] | -16.3 | -3.9 | 4.8 |
Source: Reway Group, Value Track Analysis
Reway Group: Cash Flow Statement 1H22 - 2H22 - 1H23E
(€mn) | 1H22 | 2H22 | 1H23 |
EBITDA | 10.6 | 9.0 | 10.6 |
Δ NWC | -10.4 | 8.2 | -13.9 |
Capex (excl. Financial Inv.) | -0.8 | -2.5 | -4.9 |
Δ Provisions | -0.3 | 0.3 | 0.2 |
OpFCF b.t. | -0.8 | 14.9 | -8.0 |
As a % of EBITDA | -7.8% | 166.5% | -75.4% |
Cash Taxes | -2.9 | -3.2 | -2.9 |
OpFCF a.t. | -3.7 | 11.8 | -10.9 |
Capital Injections | 0.0 | 0.0 | 18.1 |
Others (incl. Financial Inv.) | -3.7 | 4.1 | 1.6 |
Net Financial Charges | -0.1 | -0.1 | -0.1 |
Dividends Paid | 0.0 | -3.3 | 0.0 |
Δ Net Financial Position | -7.5 | 12.4 | 8.6 |
Net Financial Position | -16.3 | -3.9 | 4.8 |
Source: Reway Group, Value Track Analysis
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Reway Group SpA | Update Report | 19 October 2023
VALUETRACK
2023E-25E Estimates revision
We are changing our 2023E-25E estimates to take into account of: 1) Se.Gi. line by line consolidation starting as of November 2023; 2) the updated backlog figures and recent news flow. We forecast Se.Gi. Revenues at €54.0mn at FY23 and then growing at a 8.0% CAGR between 2023-2025E, contributing for ca. 27% of Group's Total Value of Production and ca. 36% of total EBITDA in the next three years.
Se.Gi: P&L figures 2022A-25E
€mn | 2022A | 2023E | 2024E | 2025E |
Total Revenues | 50.0 | 54.0 | 58.3 | 63.0 |
EBITDA Adj. | 14.4 | 15.0 | 16.2 | 17.5 |
EBITDA Adj. Margin (%) | 28.3% | 30.0% | 30.0% | 30.0% |
EBITDA | 12.5 | 15.0 | 16.2 | 17.5 |
EBITDA Margin (%) | 24.5% | 30.0% | 30.0% | 30.0% |
EBIT | 11.2 | 13.7 | 14.8 | 16.0 |
Reported Net Profit | 9.5 | 10.4 | 11.2 | 12.2 |
Source: Se.Gi. (historical figures), Value Track (forecasts)
As a result, the RWG's projected earnings and FCF outlook compares to previous forecasts as follows:
- Higher Backlog supporting future revenues, now expected to grow at a 23.0% CAGR 2022PF-25Eand reaching €218 .3mn at the end of forecast period. This growth is driven by existing >€500mn net backlog and by approximately the same order's amount to be received in the following 3 years;
- Improving Profitability (despite seasonality), thanks to Se.Gi. 's positive contribution on margins: EBITDA - EBITA margin at ca. 21.3 % - 19.5% in FY25E, leading to €46.8mn - €42.7mn EBITDA - EBITA respectively;
- Net Debt at €41.9 in FY23E, factoring €63mn acquisition cash-out; deleveraging is expected to occur rapidly, thanks to €46.5 receivables cash-in within FY25E, as well as cumulative €16.4mn Net Cash Generated in the forecast period.
Reported EBIT and Net Profit for FY23-25E are impacted by approximately €4.6mn/year in non-tax- deductible goodwill related to MGA's and Se.Gi.'s acquisitions, while EBITA (or Adjusted EBIT before goodwill) and Adjusted Net Profit remain unaffected by these non-cash accounting items.
Reway Group: Old vs. New Estimates 23E-25E
2023E | 2024E | 2025E | |||||||
€mn | Old | New | Δ(%) | Old | New | Δ(%) | Old | New | Δ(%) |
Total Revenues | 126.0 | 132.4 | 5.1% | 144.6 | 198.6 | 37.3% | 160.0 | 218.3 | 36.5% |
EBITDA | 22.3 | 24.3 | 8.7% | 26.1 | 42.4 | 62.5% | 29.2 | 46.8 | 60.3% |
EBITDA Margin (%) | 17.6% | 18.2% | 62bps | 17.9% | 21.2% | 332bps | 18.1% | 21.3% | 321bps |
EBITA | 18.9 | 20.6 | 8.7% | 22.9 | 37.8 | 65.0% | 26.8 | 42.7 | 59.7% |
EBITA Margin (%) | 14.9% | 15.4% | 52bps | 15.7% | 18.9% | 320bps | 16.6% | 19.5% | 287bps |
Net Profit Adj. | 12.7 | 14.1 | 10.5% | 16.0 | 19.2 | 19.8% | 19.1 | 23.0 | 20.5% |
Net Fin. Position | 23.2 | -77.8 | -101.0 | 33.6 | -41.9 | -75.6 | 46.9 | -14.9 | -61.8 |
Source: Value Track Analysis
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Reway Group SpA | Update Report | 19 October 2023
Reway Group: Profit & Loss 2022PF-25E
VALUETRACK
(€mn) | 2022PF | 2023E | 2024E | 2025E |
Value of Production | 110.5 | 133.4 | 199.6 | 219.3 |
Raw Materials, Δ Inventory (Finished Goods) | -28.5 | -34.4 | -51.5 | -56.6 |
Gross Profit | 82.0 | 98.9 | 148.1 | 162.7 |
Gross Margin (%) | 74.2% | 74.2% | 74.2% | 74.2% |
Costs of Services | -32.2 | -36.0 | -53.9 | -59.2 |
Costs of Rent | -10.3 | -12.0 | -18.0 | -19.7 |
G&A | -1.1 | -1.3 | -1.9 | -2.1 |
Labour Costs | -18.8 | -25.2 | -31.9 | -34.5 |
EBITDA | 19.6 | 24.3 | 42.4 | 47.1 |
EBITDA Margin (%) | 17.7% | 18.2% | 21.2% | 21.5% |
D&A (excl. goodwill) | -1.5 | -3.1 | -3.9 | -4.1 |
Provisions | -0.2 | -0.6 | -0.7 | 0.0 |
EBITA | 17.9 | 20.6 | 37.8 | 42.7 |
EBITA Margin (%) | 16.2% | 15.4% | 18.9% | 19.5% |
Goodwill amortization | -1.7 | -2.6 | -8.3 | -8.3 |
EBIT | 16.2 | 18.0 | 29.4 | 34.4 |
Interest Expenses | -0.2 | -0.4 | -3.6 | -2.6 |
Pre-Tax Profit | 16.0 | 17.6 | 25.9 | 31.8 |
Taxes | -6.1 | -5.4 | -9.1 | -10.9 |
Minorities | 0.0 | -0.6 | -3.4 | -3.7 |
Net Profit | 10.0 | 11.6 | 13.3 | 17.2 |
Adjusted Net Profit | 11.6 | 14.1 | 19.2 | 23.0 |
Source: Reway Group, Value Track Analysis |
Reway Group: Balance Sheet 2022PF-25E
(€mn, IT GAAP) | 2022PF | 2023E | 2024E | 2025E |
Net Fixed Assets (incl. Goodwill) | 22.9 | 119.2 | 113.7 | 109.3 |
Net Working Capital | 21.2 | 29.6 | 16.6 | 15.4 |
Provisions | 1.6 | 2.1 | 2.6 | 3.3 |
Total Capital Employed | 42.6 | 146.8 | 127.6 | 121.5 |
Group Net Equity | 38.7 | 69.0 | 85.7 | 106.6 |
Net Fin. Position [i.e. Net Debt (-) Cash (+)] | -3.9 | -77.8 | -41.9 | -14.9 |
Source: Reway Group, Value Track Analysis
Reway Group: Cash Flow Statement 2022PF-25E
(€mn) | 2022PF | 2023E | 2024E | 2025E |
EBITDA | 19.6 | 24.3 | 42.4 | 46.8 |
Δ NWC | -2.1 | -8.4 | 13.0 | 1.2 |
Capex (excl. Financial Inv.) | -3.3 | -6.0 | -6.5 | -7.1 |
Δ Provisions | 0.0 | 0.5 | 0.6 | 0.6 |
OpFCF b.t. | 14.1 | 10.4 | 49.5 | 41.5 |
As a % of EBITDA | 71.9% | 42.6% | 116.9% | 88.6% |
Cash Taxes | -6.1 | -5.4 | -9.1 | -10.9 |
OpFCF a.t. | 8.0 | 5.0 | 40.4 | 30.5 |
Capital Injections | 0.0 | 18.1 | 0.0 | 0.0 |
Others (incl. Financial Inv.) | 0.4 | -96.6 | -0.9 | -0.9 |
Net Financial Charges | -0.2 | -0.4 | -3.6 | -2.6 |
Dividends Paid | -3.3 | 0.0 | 0.0 | 0.0 |
Δ Net Financial Position | 4.9 | -73.9 | 35.9 | 27.0 |
Net Financial Position | -3.9 | -77.8 | -41.9 | -14.9 |
Source: Reway Group, Value Track Analysis
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES, CANADA, JAPAN OR AUSTRALIA | 10 |
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Reway Group S.p.A. published this content on 19 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 October 2023 11:08:42 UTC.
