Cembre

The Board of Directors approves the interim report on operations as at September 30, 2020

CEMBRE (STAR): consolidated turnover falls by 10.6% in the first nine months of 2020 while, in the third quarter of 2020 alone, it rises by 1.7%
Net financial position at September 30, 2020 amounted to a surplus of €3.7 million

12/11/2020

(Brescia 12th November 2020, h 11.39 am)

  • In the first nine months, sales fell by 10.6% both in Italy and abroad
  • Capital expenditure in the first nine months of €5.3 million
  • As at October 31, consolidated turnover in the first 10 months falls by 9.2% and the financial position is confirmed at a positive €6.1 million
 

(euro ‘000)

1/1-9/30 2020

Marg.

%

1/1-9/30 2019

Marg.

%

change

3rd Qtr. 2020

Marg.

%

3rd Qtr. 2019

Marg.

%

change

Revenues from sales

98,655

100

110,306

100

-10.6%

33,999

100

33,428

100

1.7%

Gross operating profit (Ebitda)

24,113

24.4

28,661

26.0

-15.9%

8,535

25.1

7,749

23.2

10.1%

Operating profit (Ebit)

15,953

16.2

21,374

19.4

-25.4%

5,751

16.9

5,207

15.6

10.4%

Profit before taxes

15,901

16.1

21,239

19.3

-25.1%

5,702

16.8

5,206

15.6

9.5%

Net profit

11,895

12.1

16,633

15.1

-28.5%

4,295

12.6

4,258

12.7

0.9%

Net financial position

3,724

 

1,040

 

 

 

 

 

 

 

 

Brescia, November 12, 2020 - The Board of Directors of Cembre S.p.A., company listed on the Star segment of the Italian Stock Exchange, one of the largest European manufacturers of electrical connectors and tools for their installation – chaired by its Chairman and Managing Director Giovanni Rosani, met today in Brescia and approved the interim report on operations as at September 30, 2020.

 

Consolidated sales revenues in the first nine months fell from €110.3 million in 2019 to €98.7 million in 2020, marking a decrease of 10.6% due to the Covid-19 pandemic. At quarterly level, consolidated revenues rose when compared to the third quarter of 2019, up from €33.4 million to €34.0 million, a positive change of 1.7%.

 

More specifically, in the first nine months of 2020, 39.5% of Group sales were represented by Italy (as compared with 39.5% in the first nine months of 2019), 47.5% by the rest of Europe (46.9% in the first nine months of 2019), and the remaining 13.0% by the rest of the World (13.6% in the first nine months of 2019).

Therefore, the Cembre Group recorded a decrease of 10.6% in turnover on both the Italian and foreign markets.

 

Consolidated gross operating profit (Ebitda) for the first nine months of 2020 amounted to €24.1 million, corresponding to a 24.4% margin on sales, down 15.9% from €28.7 million reported in the first nine months of 2019, representing a 26.0% margin on sales. Both the incidence of the cost of goods sold and the weight of the cost for services fell during the period. The weight of personnel costs rose compared to the first nine months of 2019, especially due to the decline in revenues; the average number of Group employees went from 745 in the first nine months of 2019 to 754 in the first nine months of 2020.

Gross operating profit in the third quarter rose by 10.1% compared to the third quarter of 2019.

 

The consolidated operating profit (Ebit) amounted to €16.0 million, corresponding to a 16.2% margin on sales, down 25.4% on €21.4 million reported in the first nine months of 2019 (19.4% of sales).

Operating profit for the third quarter of 2020 amounted to €5.8 million, representing a 16.9% margin on revenues from quarterly sales, up 10.4% on €5.2 million in the third quarter of 2019 when it represented 15.6% of revenues from quarterly sales.

 

Consolidated profit before taxes for the first nine months of 2020 amounted to €15.9 million, representing a 16.1% margin on sales, down 25.1% on the profit before taxes reported in the first nine months of 2019, amounting to €21.2 million and corresponding to a 19.3% margin on sales.

Pre-tax profit for the third quarter of 2020 amounted to €5.7 million, representing a 16.8% margin on revenues from quarterly sales, up 9.5% on €5.2 million in the third quarter of 2019 when it represented 15.6% of revenues from quarterly sales.

 

Consolidated profit for the first nine months of 2019 amounted to €11.9 million, representing a 12.1% margin on sales, down 28.5% on the profit reported in the first nine months of 2019, amounting to €16.6 million and corresponding to a 15.1% margin on sales. At quarterly level, profit rose by 0.9%, up from €4.2 million, corresponding to a margin on sales of 12.7%, to €4.3 million, corresponding to 12.6% of consolidated quarterly turnover.

 

The consolidated net financial position, amounting to a positive €3.7 million, was down compared to December 31, 2019, when it amounted to €5.6 million.

The net financial position at September 30, 2019 was a positive €1.0 million.

 

A total of €4.8 million was invested in property, plant and equipment and €0.5 million invested in intangible fixed assets, compared to investments of €8.1 million in the same period of 2019.

 

“The results of the first nine months of 2020 were heavily impacted by the effects of the COVID-19 epidemic, turnover closed said period with a decrease of 10.6%, however in the third quarter of 2020 alone we witnessed a slight recovery; in fact, turnover in the third quarter of 2020 rose by 1.7%. Also in October 2020, a better performance than October 2019 was registered, bringing the reduction in Group revenues to 9.2%, as well as the confirmation of a positive financial position of €6.1 million as at October 31, 2020. In any case, despite the recovery recorded solely in the third quarter of 2020 and in October 2020, it is estimated that Cembre Group revenues will fall in 2020, with a subsequent drop in profit margins.” stated Cembre’s Managing Director Giovanni Rosani.

 

***

Cembre designs, manufactures and distributes electrical connectors and cable accessories. It enjoys a leadership position in Italy and significant market shares in the rest of Europe. Cembre is one of the world’s leading manufacturers of tools (mechanical, pneumatic and hydraulic) for the installation of connectors and the shearing of cables. The products it has developed for connection to the rail and for other railway applications are used by the main companies in this sector round the world. Cembre owes its success to an insistence on innovative, high-quality products, a broad and thorough collection, and an extensive distribution network both in Italy and abroad.

Founded in Brescia in 1969, the Cembre Group is now a fully-fledged international force. Along with the parent company in Brescia it has five subsidiaries: four trading companies (in Germany, France, Spain and the United States) and a manufacturing and trading subsidiary (Cembre Ltd, with registered office in Birmingham), for a total of 752 employees (data updated as at September 30, 2020). Since 1990, its products have been certified by Lloyd’s Register Quality Assurance for the design and production of accessories for cables, electrical connectors and tools for their installation.

Cembre has been listed on the Italian Stock Exchange since December 15, 1997, and on the STAR section since September 24, 2001.

 

Contacts:

 

Claudio Bornati         030/36921    claudio.bornati@cembre.com

 

Further information is available at Cembre’s institutional website www.cembre.com in the Investor Relations section.

 

The Manager responsible for preparing the Company’s financial reports, Claudio Bornati, declares, pursuant to paragraph 2 of Article 154 bis of the Consolidated Law on Finance, that the accounting information contained in this press release corresponds to the document results, books and accounting records.

 

Consolidated financial statements relating to the Interim report on operations as at September 30, 2020 attached.

 

In this press release, use is made of certain “alternative performance indicators” that are not envisaged in IFRS-EU accounting standards, and whose significance and content are illustrated below, in line with the ESMA/2015/1415 recommendations published on October 5, 2015:

Gross Operating Result (EBITDA): defined as the difference between sales revenues and costs for materials, of services received, and the net balance of operating income and charges. It represents the profit achieved before amortisation, cash flows and taxes.

Operating Result (EBIT)defined as the difference between the Gross Operating Result and the value of amortization/impairment. It represents the profit before cash flows and taxes.

Net Financial Positionrepresents the algebraic sum of cash and cash equivalents, financial receivables and current and non-current financial debt.

 

This Interim Report on Operations has not been audited.

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Anmerkungen und rechtliche Informationen

Cembre Via Serenissima, 9 - 25135 Brescia - ITALY
© Copyright 2020 Cembre S.p.A.

CODICE FISCALE – P.IVA: 00541390175
ISCRIZIONE AL REGISTRO DELLE IMPRESE: n. 00541390175 Brescia
CAPITALE SOCIALE: € 8.840.000 i.v.