Gefran S.p.A. board of directors approves draft consolidated financial statements as of 31 december 2021

With reference to the consolidated results, revenues as of December 31 2021 totalled 160.2 million Euro, as compared with revenues of 129.6 million Euro in 2020, an increase of 30.6 million Euro (23.6%), which would amount to 30.9 million Euro (23.9%) net of the negative effect of exchange rate fluctuations. While in 2020 the trend in revenues had been affected by the effects of the pandemic, in 2021, technological leadership and knowledge of industrial processes (guaranteeing a satisfactory level of customer service), as well as investment and new operating methods introduced in 2020, permitted recovery of volumes of sale, which even exceeded pre-pandemic levels (revenues were 14% higher in 2021 than in 2019).

The increase in revenues applied to all business sectors: sensors (+34.1%), thanks in particular to the strong recovery of Asian markets, followed by recovery in Italy and Europe; automation components (+24.3%), mainly concentrated in Italy; and motion control (+11.5%), driven by sales of industrial and lifting products, as well as customised products.

All business sectors made up for the decline due to the effects of the Covid-19 pandemic in 2020: sensors performed 27.8% better than in the year 2019, while components and drives performed 11.8% and 2% better compared to the same period, respectively.

The breakdown of revenues by geographical region reveals double-digit growth in all areas served by the Group, particularly Asia (+22.9%) and Italy (30.6%). Revenues were also up in Europe (+21.4% overall) and on the American continent (+13.9%), where performance was in part affected by the depreciation of the dollar and the Brazilian real.

Added value as of 31 December  2021 amounted to 103 million Euro (83.8 at 31 December 2020 and 92.9 at 31 December 2019), equal to 64.3% of revenues, a decrease compared to the figure for the previous year (-0.4%), as well as the figure recorded in 2019 (-1.8%). The 19.2 million Euro increase in added value over the previous year was attributable to higher revenues, only partially offset by the higher cost of materials procurement (explaining the lower percentage of the profit margin).

Gross operating margin (EBITDA) as of December 31, 2021 was positive by 26.2 million Euro (equal to 16.3% of revenues), an increase of 8.6 million Euro (+49%) compared to 31 December 2020 (when it amounted to 17.5 million Euro), and even exceeded the figure for 2019, when it amounted to 19.7 million Euro. The improvement in EBITDA is due to increased revenues in the period.

EBIT as of December 31, 2021 was positive and amounted to 18.1 million Euro (11.3% of revenues), as compared with an EBIT of 9.4 million Euro in 2020 (7.2% of revenues), an increase of 8.7 million Euro. As in the case of gross operating margin, EBIT for the year was also higher than the figure at 31 December 2019 (which amounted to 10.4 million Euro, representing 7.4% of revenues).

The Group’s net profit as of December 31, 2021 was 13.7 million Euro (8.5% of revenues), up by 9.3 million Euro over the positive result of 4.4 million Euro in the previous year (3.4% of revenues). The net result for 2021 was up also with respect to the figure for 2019 (7 million Euro, or 5% of revenues), both in terms of absolute value (+6.5 million Euro) and as a percentage of revenues (+3.5%).

Shareholders’ equity as of December 31, 2021 amounted to 85.5 million Euro, an increase of 7.4 million Euro compared to the end of 2020. The positive result for the period, amounting to 13.7 million Euro, was partially absorbed by the dual distribution of dividends which took place in May and October, totalling 8.5 million Euro.

Investment in 2021 amounted to 8.9 million Euro (6 million Euro in the previous year).

Net financial position as of 31 December 2021 is positive by 3.3 million Euro, up 7 million Euro over the end of 2020, when it was, on the whole, negative by 3.7 million Euro.

Despite continued uncertainty, the upturn in demand in the first two months of a year suggests that revenues in the year 2022 may well be higher than those of 2021, with profit margins in line of those of previous years, in the absence of unforeseeable events.

Marcello Perini, Chief Executive Officer of the Gefran Group, comments: “The results achieved by the Group in the year 2021 are, in an absolute sense, the best ever, and I am extremely satisfied and proud of this. 

The Group has consolidated its role as a landmark for customer companies thanks to its ability to guarantee high levels of service despite a highly complex global scenario. 

The results are also the fruit of Gefran’s investment over the years in a variety of areas: product innovation, evolution of industrial processes and appreciation of human qualities.

The strength we have achieved in all essential areas of the business makes us confident that we will continue to grow by improving on our results so far. 

During the first two months of 2022, a number of critical issues which had emerged in the previous year continued to affect results, particularly difficulties obtaining supplies of materials and increased raw materials costs. In addition to these factors, we have seen the precipitation of the Russia-Ukraine crisis and the outbreak of war, which is now a cause for great concern around the world and distress about the suffering of the Ukrainian population.

We are closely monitoring the evolution of various critical issues and their possible impact on business trends, and we remain positive about the outlook for revenues and margins in 2022.”

Allocation of net profit for the year

Regarding the profit for the year 2021, the Board of Directors has resolved to propose to the Shareholders’ Meeting distribution of a dividend of 0.38 Euro per share in circulation (not including own shares), through use of the necessary amount of the net profit for the year, carrying over the residual amount. The dividend, in compliance with the provisions of the “Regulation of the markets organised and managed by Borsa Italiana S.p.A.”, will be paid as follows: ex-dividend date 9 May 2022, record date 10 May 2022, in payment beginning on 11 May 2022.