THE BOD OF GVS S.p.A. APPROVES THE FIRST HALF 2020 RESULTS
REVENUE AT 30 JUNE 2020 UP 25% AND CONSIDERABLE GROWTH IN PROFIT MARGIN
Main consolidated results of the first half 2020 compared to the first half 2019:
- Revenue of Euro146.3 million, up 25% on Euro 116.7 million;
- Adjusted EBITDA1 of Euro 55.1 million (+71%) compared to Euro 32.2 million, with a trading margin of 37.7%. EBITDA of Euro 49.7 million (+56%) compared to Euro 31.8 million, with a ratio to revenue of 34%;
- Adjusted EBIT 2 of Euro 47.9 million (+84%) compared to Euro 26 million. EBIT of Euro 40.5 million (+70.7%) compared to Euro 23.7 million, with a ratio to revenue of 27.7%;
- Adjusted Net Profit3 of Euro 32.7 million, up 77% on Euro 18.5 million. Net profit of Euro 27 million, up 64.6% on Euro 16.4 million;
- Net financial position of Euro 9.2 million compared to Euro 103.1 million at 31 December 2019.
Zola Pedrosa (BO), 9 September 2020 – The Board of Directors of GVS S.p.A., a leading player providing advanced filtration solutions for critical applications, meeting today at Zola Pedrosa (BO), approves the consolidated results of the first half 2020 prepared in accordance with the IFRS international accounting standards.
“The results recorded in the first half year reflect the hard work put in over the first three months of 2020 to accelerate our business plan and from which we prospered in the second quarter. All this confirms the soundness of the strategic choices made to manage the Covid-19 emergency and the efficacy of our business model, focussed above all on a “glocal” approach. I believe that the double-digit growth in revenue and in the profit margin represents a solid basis for the coming months, albeit in light of a context that is highly impacted by the evolution of the pandemic. This result was achieved thanks to the commitment and dynamism of the 2400 people that make up the Group that meant we were able to react rapidly as the situation evolved.” said Massimo Scagliarini, CEO of GVS.
ANALYSIS OF THE GROUP’S ECONOMIC PERFORMANCE
In the first half of 2020 GVS recorded Consolidated revenue of Euro 146.3 million, up 25% compared to Euro 116.7 million recorded in the same period in 2019. This result is mainly due to the growth of the Health & Safety and Healthcare & Life Sciences divisions, in both cases driven by the new demands arising from the spread of Covid-19.
The trend and distribution of the revenue from contracts with clients at 30 June 2020 can be broken down as follows:
- the Healthcare & Life Sciences division, that represents 47% of the total, grew by about 16% compared to the same period in 2019;
- the Energy & Mobility division, that represents 21% of the total, recorded a reduction of about 32% compared to the same period in 2019, due to the overall slow-down of the sector;
- The Health & Safety division, which represents 32% of the total increased from the 10% at 31 December 2019 due to a significant growth in the demand for personal protection equipment (FFP3) for the hospital sector.
The Adjusted EBITDA stands at Euro 55,1 million (+71%) compared to 30 June 2019, when it stood at Euro 32.2 million, recording a profit margin of 37.7% compared to 27.6% in the first half of 2019. This increase can be attributed to the procurement and costs reduction strategies carried out during the last term, along with rapid installation and start up of 41 new production lines at the GVS Group’s plants. The EBITDA stands at Euro 49.7 million (+56%) compared to Euro 31.8 million, with a ratio to revenue of 34%.
The Adjusted EBIT stands at Euro 47.9 million (+84%) compared to the same period last year when it stood at Euro 26 million. The EBIT stands at Euro 40.5 million (+70.7%) compared to Euro 23.7 million, with a ratio to revenue of 27.7%.
The Adjusted Net Profit stands at Euro 32.7 million up on Euro 18.5 million recorded for the first half 2019, bearing the consequences of negative exchange rate differences for Euro 2.7 million. The Net Profit stands at Euro 27 million compared to Euro 16.4 million in the same period in 2019.
The Net Financial Position at 30 June 2020 stands at Euro 9.2 million compared to Euro 103.1 million at 31 December 2019. This result, along with the current trend of operations and the acquisitions made, also reflects the income generated from the capital increase linked to the IPO of Euro 79.8 million.
SIGNIFICANT EVENTS AT 30 JUNE 2020 On 19 June 2020, GVS completed its listing on Borsa Italiana’s Equity market (MTA). Goldman Sachs International and Mediobanca – Banca di Credito Finanziario S.p.A. were the joint global coordinators and joint bookrunners while Mediobanca – Banca di Credito Finanziario was also a Sponsor. In the first half year 2020 the GVS Group, through its subsidiary GVS Filter Technology de Mexico S. de. R.L. de C.V., completed the acquisition of a company branch for Life Sciences business products, previously controlled by Graphic Controls Acquisition Corp. Also, at the end of June 2020, the closing of the full shareholding of Haemonetics Puerto Rico LLC, company operating in the Healthcare business, was completed.
IMPACTS AND EFFECTS OF THE COVID-19 PANDEMIC
The first half year 2020 was greatly impacted by the Covid-19 pandemic. In this period the GVS Group adopted organisation methods and procedures to ensure continuation of production and administrative activities so as to guarantee the commitments undertaken with its clients, while fully respecting the health and safety of its employees and contract staff. Indeed, while on one hand the pandemic led to a drop in the demand for products in the Energy & Mobility division, on the other hand it led to a marked rise in sales volumes of products in the Healthcare & Life Sciences division (filters for ventilators) and in the Health & Safety division (personal protective masks for the hospital sector). The Group was fully engaged in guaranteeing the production levels of these products required by the emergency situation, also by investing in 41 new production lines in Italy, Mexico, USA, China, Brazil, UK and Romania starting from March 2020.
In view of the amount of revenue from contracts with clients at 30 June 2020 and the order portfolio as it stands today, GVS expects to achieve, net of the acquisition of Haemonetics Puerto Rico LLC and of any other new acquisitions or cancellations of orders received, revenue at the end of 2020 of around Euro 280 to 320 million, an increase of 23%-41% compared to 31 December 2019. The growth for the current year is higher than the historical average of the GVS business trend due to an accelerated adjustment to the demand for filters for ventilators and personal protective equipment to respond to the emergency caused by COVID-19.
The evolution of the business in the coming months and related results will depend on the evolution of the pandemic and any lockdowns in the various countries, on the return to work strategies of clients in the countries where the Group works and on the growth support measures that governments decide to adopt for the economic recovery.
The Board of Directors also approved:
– after consulting the Nomination and Compensation Committee, the allocation of rights to the beneficiaries of the Performance Shares Plan 2020-2022, implementing the resolution passed by the Shareholders’ Meeting held on 13 March 2020 and in line with the indications given at the time of the admission to listing. Specifically, the Board resolved to allocate a total of no. 612,000 rights
o to the Executive Directors Massimo Scagliarini, Mario Saccone and Matteo Viola,
o to the strategic directors Luca Querzè, Luca Zanini, Pierre Dizier and
o to other group directors.
– the regulation governing the functioning of the Board.
STATEMENT AS OF ARTICLE 154-BIS, SUB-PARAGRAPH TWO OF THE T.U.F. (Consolidated Finance Act)
The Director tasked with keeping the company’s accounting records, Mr. Emanuele Stanco, in accordance with article 154-is, sub-paragraph two, of Italian Legislative Decree no. 58/98, declares that the accounting data contained in this press release correspond to those in accounting books and records.
The 2020 half year results will be presented by the Group’s Top Management during a conference call on Wednesday 9 September at 4.30pm Italian Time.
The conference call can be followed via webcast at the url: https://87399.choruscall.eu/links/gvs200909.html
As an alternative to the webcast, it will be possible to take part in the conference call via one of the following numbers:
ITALY: +39 02 805 88 11
UK: + 44 121 281 8003
USA: +1 718 7058794
The Top Management’s presentation can be consulted before the start of the conference call on the authorised storage mechanism eMarket SDIR managed by Spafid S.p.A. and on the company’s website www.gvs.com (section Investor/Financial Documents/Presentations).
The Half Year Report at 30 June 2020 can be consulted by the public at the Company’s offices, at the Borsa Italiana (Italian Stock Exchange) and on the website www.gvs.com “Investor/Financial Documents/Financial Statements” in accordance with the provisions of law.
This press release is available on the regulated information disclosure system eMarket SDIR, managed by Spafid S.p.A., and on the company’s website www.gvs.com (section Investor/Press Releases).
The GVS Group is one of the world’s leading suppliers of filter solutions for applications in the Healthcare & Life Sciences, Energy & Mobility and Health & Safety sectors. The Group’s strong focus on internationalisation has led to the opening of 13 production plants located in Italy, UK, Brazil, USA, China, Mexico and Romania, as well as 6 sales offices in Russia, Turkey, Argentina, Japan, China and Korea. In the year ending on 31 December 2019, the GVS Group recorded revenue from contracts with clients of Euro 227 million and an Adjusted EBITDA of Euro 62 million.
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