Sogefi, revenues up in Q1. Cost increase affects margins

Sogefi revenues up in Q1 Cost increase affects margins

(Finance) – Sogefia company listed on Euronext STAR Milan and operating in the automotive components sector (part of the CIR), has registered revenues equal to 381.1 million euros in the first quarter of 2022, an increase of 8% compared to the first quarter of 2021. I volumes of production remained substantially stable (compared to a market at -4.5%) and selling prices have been adjusted to take into account the increases in the costs of raw materials, in particular steel, recorded over the last 12 months. Turnover grew in all geographic areas: + 4.1% in Europe, + 13.5% in North America, + 31.9% in South America and + 7.6% in Asia.

L’EBITDA amounted to 50 million euros, compared to 54.2 million euros in the first quarter of 2021. TheEBITDA margin was 13.1% of turnover, lower than in the first quarter of 2021 (15.4%) due to the increase in the costs of raw materials and energy. The Net income it was positive for 10.7 million euros (11.8 million in the first quarter of 2021). Free Cash Flow was positive for 43.7 million euros, compared to 32.4 million in the first quarter of 2021.net financial debt before IFRS 16 as at 31 March 2022 it was 213.4 million euros, down compared to the end of 2021 (258.2 million) and compared to 31 March 2021 (261.1 million).

As for the impacts of the Russian-Ukrainian conflict, Sogefi claims to have a “very limited direct presence in the affected countries”: in 2021 the revenues achieved in the aforementioned countries represented 0.7% of total revenues. Sales to Russia, Ukraine and Belarus were stopped starting in March. As a consequence, in the first quarter of 2022, Sogefi recorded impairment of assets held in Russia for 1.1 million euros. With the exception of these write-downs, the impact on revenues and margins of the crisis was “insignificant”.

Assuming that there are no further factors of serious deterioration of the macro-economic and productive scenario (significant tightening of sanctions against Russia, extension of the conflict outside Ukraine, shortage and increases in energy and raw material prices compared to such as to compromise the sustainability of the supply chain), Sogefi confirms its objective of achievingfull year 2022 an operating result, substantially excluding non-recurring charges in line with that recorded in 2021.

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