Acea, 2023 net profit growing to 280 million. Board of Directors approves Plan

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(Finance) – ACEA closes the 2023 financial year with a recurring net profit of Group equal to 280 million Euros, up 22% compared to 2022. The greater focus on cost and investment management, together with organic growth – explains a note – have more than compensated for the greater depreciation linked to the investments made and the increase in financial charges caused by the increase in interest rates . The tax rate goes from 37.5% in 2022 (normalized by the extraordinary solidarity contribution 29.8%) to 31.1% in 2023.

THE consolidated revenues they attest to 4,649.4 million Euros, decreasing from 5,138.2 million euros in 2022 and are mainly affected by the sharp decline in prices on the energy markets. Revenues relating to the Water Italy, Networks & Smart Cities and Environment areas, equal to 2.4 billion euros, represent over 50% of the total and recorded an increase of approximately 6% in the period. Recurring EBITDA grew by 7% to 1,347 million of Euros, thanks to the greater contribution of the regulated businesses (+10% Water Italy and +7% Networks & Smart Cities) and the Commercial area and the operational efficiencies achieved, factors which more than compensated for the negative impact of the energy scenario.

The investments made in 2023 are equal to 1,142.7 million of Euros, substantially in line with the previous year. The investments – approximately 88% destined for regulated activities – are divided as follows: Water Italy 682.4 million Euros, Networks & Smart Cities 299.6 million Euros, Environment 38.9 million Euros, Production 41, 1 million Euro, Commercial 50.2 million Euro, others
business (Water Abroad, Engineering) and Corporate 30.5 million Euros.

The Net Financial Position of the Group goes from 4,439.7 million as of 31 December 2022 to 4,846.8 million Euros as of 31 December 2023. The change is mainly influenced by the dynamics of the investments made, the dynamics of the energy price and the actions to contain working capital .

The Board of Directors will propose to the Ordinary Shareholders’ Meeting the distribution of a dividend equal to 0.88 Euros per share which will be paid starting from 26 June 2024, with coupon date on 24 June and record date on 25 June

The Board of Directors also approved the 2024-2028 Business Plan, which provides for a important investment program focused on Water, Electricity, Environment, with average annual capex equal to 1.5x the 2020-2023 average. The business plan envisages investments, in the period 2024-2028, equal to 7.6 billion Euros, 91% of which destined for regulated activities.

Wait one growth of all the main economic indicators: EBITDA in a flat arc it presents a average annual growth of over 5% and reaches 1,800 million euros at the end of 2028 (of which 90% from regulated activities), compared to 1,391 million euros in 2023 (+29%). Net profit is expected to increase to one 5% CAGR from 294 million Euros in 2023 to 350 million in 2026 e 375 million in 2028.

The Plan also aims tofinancial balance, with working capital expected to improve significantly thanks to the optimization of supplies and payment times and innovative strategies in the entire credit management and recovery chain. The consistent ones operating cash flows generated over the course of the Plan and the overall improvement in working capital, guarantee a high level of financial solidity with a general improvement in the economic-financial indicators and in particular with a NFP/EBITDA ratio expected to decline from 3.5x in 2023 to 3.1x in 2028.

Dividends expected to constantly increase over the plan period, with the distribution of over 1 billion Euros (accrual) until 2028 and one annual growth of DPS (Dividend per Share) of +4% from 0.88 Euros per share in 2023.

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