Tesmec S p A : The Board of Directors approved First Half 2022 results - bdsthanhhoavn.com

Tesmec S p A : The Board of Directors approved First Half 2022 results







TESMEC S.P.A.: THE BOARD OF DIRECTORS APPROVED THE INTERIM CONSOLIDATED FINANCIAL REPORT AS AT 30 JUNE 2022, THAT RECORDED A STRONG IMPROVEMENT IN THE TURNOVER, OPERATING RESULTS AND PROFITS, WITH AN INCREASE IN THE NET FINANCIAL DEBT DUE TO THE INCREASE IN WORKING CAPITAL. CONFIRMED THE GROWTH TREND OF THE FULL YEAR

Main consolidated results of the first half 2022 (compared to the first half 2021):

  • Revenues: Euro 113.3 million, with an increase compared to Euro 96.9 million as at 30 June 2021;
  • EBITDA1: Euro 18.7 million, with an increase compared to Euro 13.7 million as at 30 June 2021;
  • EBIT: Euro 8.0 million, with an increase compared to Euro 2,9 million as at 30 June 2021;
  • Net result: Euro 7.9 million, with an increase compared to Euro 1.0 million as at 30 June 2021, which is positively impacted by the forex;
  • Net financial indebtedness 2: Euro 133.1 million, with an increase compared to Euro 121.0 million as at 31 December 2021 and compared to Euro 119.4 million as at 31 March 2022 in particular as a result of the increase in working capital;
  • Total order backlog: Euro 285.2 million, with an increase compared both to Euro 284.2 million as at 31 December 2021, and to Euro 270.2 million as at 30 June 2021.

Outlook and further strategic / organizational strengthening:

  • Outlook 2022: expected revenues over Euro 240 million, EBITDA higher than 16%, EBIT and net result in line with the market expectation with a reduction in Net Financial Debt;
  • Sustainability: ESG principles are a strategic priority for the Group to create value, the integration into the business model and investments in new product technologies will drive the future growth;
  • Further strengthening of the top management: appointment of Marco Paredi as Director of the Trenchers Business Unit, Ruggero Gambini as Chief Financial Officer and Manager responsible for the preparation of the corporate accounting documents and Caterina Caccia Dominioni as General Counsel of the Group.
  1. The EBITDA is represented by the operating income gross of amortization/depreciation. The EBITDA thus defined represents a measurement used by Company management to monitor and assess the company’s operating performance. EBITDA is not recognized as a measure of performance by the IFRS and therefore is not to be considered an alternative measurement for assessing the performance of the Group’s operating income. As the composition of EBITDA is not governed by the reference accounting standards, the criterion for determination applied by the Group may not be in line with the criterion adopted by others and is therefore not comparable.
  2. The net financial indebtedness is calculated as the sum of cash and cash equivalents, current financial assets including available-for-sale securities, current and non-current financial liabilities, including leasing liabilities and IFRS 16, fair value of hedging instruments and excluding non-current trade and other payables.

Tesmec S.p.A. – via Zanica, 17/O – 24050 Grassobbio (Bergamo) – Italy

Tel. +39.035.4232911 – Fax +39.035.4522444 – [email protected] – www.tesmec.com

Grassobbio (Bergamo – Italy), 5 August 2022 – The Board of Directors of Tesmec S.p.A. (EURONEXT STAR MILAN STAR: TES) (“Tesmec” or the “Company“), at the head of a group leader in the market of technologies for infrastructures (overhead, underground and railway networks) related to the transport of energy, data and materials (oil and derivatives, gas and water), and of technologies in surface mining, convened today and chaired by Ambrogio Caccia Dominioni, examined and approved the Interim consolidated financial report as at 30 June 2022, which records the best half-yearly results in its history, confirming the growth trend and consolidation trend of all the main economic and financial indicators, due to the contribution of the Railway and Energy sectors and the recovery of the American market for Trencher sector. Although the general context of uncertainty, due to inflationary pressures, both in relation to the cost of purchasing materials and the energy component, the margin recorded an increase. To handle with these changes, Tesmec has already taken the necessary actions, working on efficiency, innovation, and adjustment of price lists, and starting negotiations with the competent contracting authorities in the event of medium-long term supply contracts. The change in net financial debt compared to the end of the previous reporting period is due to the increase in net working capital to cope with the critical issues arising on the procurement market and in the context of logistics flows and freight rates.

The Chairman and CEO Ambrogio Caccia Dominioni commented as follows: “Tesmec recorded the best semester in its history with an improvement in all the relevant economic and financial indicators, despite a still uncertain international scenario due to the tensions associated with the conflict in Ukraine, to the increase of the raw material and energy prices, and to the difficulties related to the supply chain. The increase in the net financial position in the period is linked to the change in net working capital to deal with logistical and supply problems. The Trencher segment achieved good performances on the American and Middle Eastern markets. The Railway sector confirmed the trend of strengthening the business at an international level and the Energy sector is registering interesting prospects thanks to new technological products. Today, the Group’s business is increasingly oriented towards sustainable innovation with a special focus on the electrification of equipment to minimize environmental impact and diagnostics and digitization to increase infrastructure security. Sustainability is a challenge, but also a great opportunity, and this is the reason why our strategy aims to integrate ESG principles into medium to long-termactions. Actions are planned to measure the Group’s externalities with the aim to take actions to reduce our carbon footprint. We confirm the forecasts for the year 2022 and the guidelines of the 2020-2023Business Plan, with positive expectations regarding the net result. In the second half of the year, we are also confident in a reduction in net financial debt.

MAIN CONSOLIDATED RESULTS AS AT 30 JUNE 2022

Tesmec Group revenues amounted to Euro 113.3 million as at 30 June 2022, with an increase compared to Euro 96.9 million as at 30 June 2021. This variation is mainly due to the confirmation of the performance of the Railway and Trencher sector. In particular, as at 30 June 2022, revenues from sales of products amounted to Euro 70.9 million, with an increase compared to Euro 62.3 million as at 30 June 2021, and revenues from services and charges in work in progress amounted to Euro 42.4 million, with an increase compared to Euro

34.6 million at 30 June 2021.Volumes have recovered mainly in the Trencher and Rail sectors. The Energy sector remains stable but with a better mix.

Tesmec S.p.A. – via Zanica, 17/O – 24050 Grassobbio (Bergamo) – Italy

Tel. +39.035.4232911 – Fax +39.035.4522444 – [email protected] – www.tesmec.com

Results at 30 June 2022

Revenues from sales and services

(Euro in thousands)

2022

2021

Change 22

vs 21

Trencher

66,577

58,879

+13.1%

Effect on Consolidated Revenues

58.8%

60.7%

Railway

23,048

14,506

+58.9%

Effect on Consolidated Revenues

20.3%

15.0%

Energy

23,629

23,517

+0.5%

Effect on Consolidated Revenues

20.9%

24.3%

Consolidate

113,254

96,902

+16.9%

The revenues of the Trencher sector as at 30 June 2022 amounted to Euro 66.6 million with an increase compared to Euro 58.9 million as at 30 June 2021, thanks to the American market recovery, and more in general to the launch of development and recovery plans in the countries where the Group operates and in spite of an economic scenario characterized by difficulties in finding materials and a rise in purchase prices. As at 30 June 2022, the Trencher segment’s order backlog was Euro 75.3 million (compared to Euro 82 million at 30 June 2021).

The Railway sector recorder Revenues as at 30 June 2022 of Euro 23.0 million, with an increase compared to Euro 14.5 million as at 30 June 2021. The growth confirms the strengthening of the business generated by higher value-added projects related to diagnostic products and by the projects generated outside of national boundaries. In the rail sector, the confirmed order backlog amounted to Euro 100.7 million as at 30 June 2022 (with a decrease compared to Euro 107.1 million as at 30 June 2021).

With reference to the Energy sector, Revenues as at 30 June 2022 were Euro 23.6 million, in line compared to Euro 23.5 million as at 30 June 2021. In particular, the Stringing segment recorded revenues of Euro 16.1 million, in line compared to Euro 16.1 million as at 30 June 2021, while the Energy Automation segment recorded revenues of Euro 7.6 million, with a slight improvement compared to Euro 7.4 million as at 30 June 2021, despite the difficulties in finding electronic components and semiconductors from the Far East. The commercial activities recorded a strong acceleration and in fact the order backlog amounted to Euro 109.2 million (compared to Euro 81.1 million as at 30 June 2021), of which Euro 86.6 million in the Energy Automation segment, and Euro 22.6 million in the Stringing segment.

In geographic terms, Tesmec Group recorded a better contribution of sales in Italy driven by the Railway and Energy sectors and confirms the predominant role of the American and European market. The Middle East area improves its performance in the period and confirms a further strengthening in the coming quarters.

The EBITDA amounted to Euro 18.7 million, with an increase compared to the Euro 13.7 million as at 30 June 2021. In particular, the Trencher sector contributes to generate margin through the performance of markets in the Middle East, the United States and New Zealand; the Rail sector participates in the formation of the margin thanks to the best mix generated by projects with higher added value and geographical diversification, while the Energy sector, despite being the sector that has suffered most from the critical

Tesmec S.p.A. – via Zanica, 17/O – 24050 Grassobbio (Bergamo) – Italy

Tel. +39.035.4232911 – Fax +39.035.4522444 – [email protected] – www.tesmec.com

issues related to the supply chain, maintains margins through a better mix of products and sales generated in higher value-added regions like Australia and the U.S.

The EBIT of Tesmec Group amounted to Euro 8.0 million, with an improvement compared the Euro 2.9 million at 30 June 2021.

The Net Financial Income of the Tesmec Group were Euro 3.4 million as at 30 June 2022, compared to a negative value of Euro 1.1 million as at 30 June 2021. During the period, the Group recorded foreign exchange gains of approximately Euro 5.3 million, mainly unrealized, generated by the strengthening of the dollar and linked currencies.

The Net result as at 30 June 2022 was Euro 7.9 million, with an increase compared to Euro 1.0 million as at 30 June 2021.

The Net financial indebtedness was Euro 133.1 million as at 30 June 2022, with an increase compared to Euro 121.0 million as at 31 December 2021 and compared to Euro 119.4 million as at 31 March 2022 due to the increase in net working capital as consequence of the uncertainties in the procurement of materials and components and in the shipments of finished products. This value included Euro 24.9 million of financial liabilities relating to rights of use (IFRS 16), mainly related to the Grassobbio premises and to the Trencher rental fleet.

The Total Order Backlog of the Tesmec Group as at 30 June 2022 amounted to Euro 285.2 million Euro

  1. million of which referring to the Railway segment, Euro 75.3 million to the Trencher segment and Euro 109.2 million to the Energy segment (of which Euro 86.6 million related the Energy-Automation segment and Euro 22.6 million related to the Stringing segment) – with an increase both compared to Euro
  1. million as at 31 December 2021, and to Euro 270.2 million as at 30 June 2021. The order backlog confirms the strong presence of the Group in strategic sectors with high potential related to the energy, digital and green transition processes driven by the Recovery Plans introduced by the Governments of the countries in which Tesmec operates.

Summary of financial data are reported below:

(Euro in million)

Actual

Actual

Change 22

2022.1H

2021.1H

vs 21

Revenues

113.3

96.9

16.9%

Ebitda

18.7

13.7

36.5%

Ebitda Margin

16.5%

14.2%

Ebit

8.0

2.9

2x

Net result

7.9

1.0

7x

Net financial indebtedness

133.1

118.5

9.8%

Tesmec S.p.A. – via Zanica, 17/O – 24050 Grassobbio (Bergamo) – Italy

Tel. +39.035.4232911 – Fax +39.035.4522444 – [email protected] – www.tesmec.com

BUSINESS OUTLOOK

The first half of 2022 saw a recovery in economic activities and at the same time a constant and significant increase in the inflation rate, the latter mainly due to the difficulties in the supply chains, the Russian- Ukrainian conflict and the increases recorded in the energy and raw material. Major central banks, including the Federal Reserve, have planned and/or implemented restrictive monetary policies by reducing liquidity injections into the economic and financial system and periodically increasing interest rates in order to contain inflation. Given the current macro-economic context and monetary policies, the growth expectations of the global economy have been revised downwards, but always recovering given the pursuit of national plans to support the development of infrastructure projects, energy transition and digitalization.

In the light of the above and on the basis of the consolidation of the reference businesses and the results recorded in the first half, the Tesmec Group confirms the forecasts for the year 2022, already provided to the market on 10 May: consolidated turnover exceeding Euro 240 million, EBITDA percentage higher than 16% and reduction of Net Financial Debt. The Trencher sector continues its strengthening on the American and Middle Eastern market, taking advantage of the trend generated by the reference industrial sectors and in the second half of the year, it expects the resumption of mining activities in the African countries in which it operates. The Rail sector continues its process of geographic diversification and proposition of technologies with higher added value, while the Energy sector confirms its path of strengthening in geographic areas with a higher technological content and with a range of integrated solutions with higher margins.

Tesmec Group confirms its guidelines for the 2020-2023 Plan supported by the performance of the first half and by the current activities. Tesmec is active in sectors that are benefiting from new investments and development policies aimed at strengthening the key infrastructures of the main countries. The Group’s business is concentrated in strategic sectors that are extremely lively and have significant growth prospects. In details, huge investments are planned in the Trencher segment to strengthen telecommunications networks and digitalization in addition to strong development in the mining sector. The Rail segment is benefiting from a significant increase in investments to reduce traffic congestion of road vehicles and increase sustainable mobility, as well as for the maintenance of lines with the aim of ensuring the safety of rail transport. In the Energy segment, the transition to the use of renewable energy sources is confirmed, with the power lines being adapted to the new requirements.

The above objectives were developed according to the logic that there is no worsening of the macroeconomic conditions or a drift in the Russian-Ukrainian conflict.

SUSTAINABILITY

The challenge of sustainability is one of the strategic priorities of the Group, which has undertaken a path aimed at integrating ESG principles into its business model.

Tesmec has been confirmed as the leader in Sustainability: the Group is in the list of the 200 most sustainable Italian companies, published in May in Il Sole 24 Ore in collaboration with Statista.

Tesmec S.p.A. – via Zanica, 17/O – 24050 Grassobbio (Bergamo) – Italy

Tel. +39.035.4232911 – Fax +39.035.4522444 – [email protected] – www.tesmec.com

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Disclaimer

Tesmec S.p.A. published this content on 05 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 August 2022 11:15:18 UTC.

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All news about TESMEC S.P.A.

Sales 2022 235 M
239 M
239 M
Net income 2022 8,70 M
8,84 M
8,84 M
Net Debt 2022 106 M
108 M
108 M
P/E ratio 2022 9,57x
Yield 2022
Capitalization 80,6 M
81,9 M
81,9 M
EV / Sales 2022 0,79x
EV / Sales 2023 0,62x
Nbr of Employees 957
Free-Float 43,8%



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