Piovan revenues, operational efficiency and investments increase as at 30 September 2023

The Board of Directors of Piovan recently approved the company’s financial statementsas at 30 September 2023. Here follows a summary of the group's economic performance in the first nine months of 2023 compared to September 2022: total consolidated revenues and other income 427.3 million euros (+12.0% and +7.9%, respectively, on a like-for-like consolidation basis); adjusted consolidated Ebitda 55.7 million euros (13.0% of revenues and other income, +25.2% compared to 30 September 2022, +22.2% on a like-for-like basis excluding certain non-recurring items); consolidated Ebit 48.2 million euros (11.3% of revenues and other income), consolidated net profit 32.5 million euros with an increase of 3.8 million euros (+13.4%) compared to 30 September 2022; earnings per share amounted to 0.65 euros at 30 September 2023 (0.56 euros at 30 September 2022). The consolidated net financial position amounted to 87.3 million euros, despite the increase in investments and the doubling of dividends paid to shareholders during the period.

Revenues by market regions show the Technical Polymers business unit up 13.8%, with good performance in all geographical areas. The increase can be attributed to the growing use of recycled materials in rigid packaging, to rising sales in the automotive sector where the transition to electric models requires the replacement of metal components with engineering polymers, to the investments in new business sectors and - more generally - to the steady growth of components for medical applications. For the Food and Industrial Applications business unit, -9.8% was recorded compared to the first nine months of 2022, yet recovering from the -19.9% low recorded in the first half of 2023. Orders in the plastic powder market and the timing of project developments have taken some production capacity away from powders for food applications. Compared to the January-September period of the previous year, the +23% recorded by the Services business unit shows how the group is particularly attentive to the development of a direct market presence through sales branches that ensure additional after-sale income.

In geographical terms, on the other hand, all regions are growing. North America recorded +16.1%, with good performance in both Technical Polymers and Food Applications. Asian markets grew by 26.3%, thanks also to some major new orders received at the end of 2022 and at the beginning of 2023, as well as the positive developments in the Indian market. With +4.2%, Europe recorded limited growth due to large food projects being carried out in the Old Continent but destined for North America. The good performance recorded in South America (+11.6%) is the result of a satisfactory order backlog at the beginning of the year.

In addition to future strategic goals and a foreseeable growth of operations, also Piovan Group's contribution to circular economy is strengthening. The evolution of the European legislation on the production and use of plastics encourages the reuse of plastic items and the use of recycled plastics. This trend is considered an opportunity by Piovan Group, which is very active in the process of change thanks to its growing investments in research and development activities with 297 employees worldwide. Advanced technological innovations - many of which are patented - allow converters to develop technical products that can be used multiple times and to create quality products starting from 100% recycled polymers. Since 2006, the group has contributed to the construction of hundreds of systems for the recycling of plastic materials and thousands of plants that make it possible to produce new items from recycled plastics. To date, the company estimates that about 32.4% of its automation systems sold to packaging, fibre and recycling companies - where post-consumer plastic is mainly used - are employed in material recycling operations.

Still looking to the future, Piovan will pursue growth through acquisitions. The coming months will see the implementation of Ipeg's integration strategy in order to fully exploit its potential. The group will continue to study potential acquisition and external growth opportunities, looking with interest at companies whose technologies/products can strengthen the value chain. In the future, the group is also expected to increase the market share of the Food and Industrial Applications business unit, both through acquisitions and organic growth, which will result primarily in the enlargement of the sales network in order to be closer to customers.

Tags