Additional periodic information at March 31, 2020 examined by the Board of Directors

  • During the quarter, the overall performance of the Portfolio Companies was positive, with an improvement in the aggregate operating result, achieved despite the impact of the extraordinary measures to contain the Covid-19 emergency. These mainly concerned the month of March, though they could have greater impacts later the year.
    • Further improvement in results for the companies active in the food sector (Caffè Borbone, Capitelli and Sirap) and for those in the energy sector (Autogas Nord-AGN Energia and Italgen, with growth in EBITDA, despite a slight contraction in revenue due to contingencies).
    • The lockdown measures for commercial and production activities, on the other hand, had negative effects on the activities of Tecnica Group and Iseo, both with reduced results, and slowed the growth of Officina Profumo di Santa Maria Novella.
  • In light of these trends, at a consolidated level, the quarter closed with an increase in revenue to 149.8 million (130.8 million in the first quarter of 2019), but with a negative EBITDA of 0.4 million (positive for 18.2 million) due to the write-downs of some financial assets in the Italmobiliare SpA portfolio following the drastic correction of the markets.
  • The Net Asset Value of Italmobiliare at the end of March was equal to 1,637.9 million euro, down by about 6% compared with the end of 2019 (1,741.1 million), mainly due to the reduction in the value of listed equity investments (world stock exchanges lost about 20% in the quarter) and financial assets.
  • The net financial position of Italmobiliare SpA at the end of March was positive for 515.1 million (569.6 million at the end of 2019), a reduction taking into account the investment of around 40 million in Santa Maria Novella.

Milan, May 12, 2020 - Today the Board of Directors of Italmobiliare S.p.A. approved the additional periodic financial reporting at March 31, 2020.

The economic situation of the quarter was marred by the Covid-19 pandemic and by the protective measures implemented by the institutions at an international level, which have led to a lockdown of many industrial and commercial activities - especially in March - with serious consequences for business operations, as well as for social life. The uncertainty related to the spread of coronavirus, the consequent health emergency and the deterioration of the economic context could also weigh even more in later periods of the year. For this reason, the Board of Directors has further strengthened the controls and direction of assets, in function of a rigorous monitoring of the impacts of the pandemic, confirming the prudential and long-term management of its investments.

Italmobiliare promptly implemented, both at holding company level and at the Portfolio Companies, all safety and control measures to limit contagion and to ensure continuity of production, except for limited downtime at certain plants in the companies that have mainly borne the brunt of this epoch-making shock.

Despite the significant impacts of the lockdown on the macroeconomic context and helped by a better first two months of the year compared with the same period of 2019, the Italmobiliare Portfolio Companies turned in a positive trend overall, with an aggregate EBITDA up by almost 15% to 50.2 million.

In particular, in the food sector, both Caffè Borbone and Capitelli have continued to grow in terms of revenue and gross operating profit; Sirap (food packaging) has also closed the quarter with an improvement in EBITDA, also following the effects of implementation of the business plan. In the energy sector, Autogas Nord-AGN Energia and Italgen, despite a reduction in revenue (for Autogas due to the drop in the selling price of LPG, in turn linked to the drop in raw material purchase prices and for Italgen to the decrease in pass-through revenue), they closed the quarter with a good improvement in margins, helped by careful management of fixed costs. Officina Profumo Farmaceutica di Santa Maria Novella, acquired in January, after a start of the year in line with the positive trend of 2019, closed the quarter with marginal growth in revenue following the forced closure of various shops in Europe and the USA. The lockdown in March had the greatest impact on the activities and results of Tecnica Group and Iseo, despite - in this case too - a better performance in the first part of the quarter. Because of the violent contraction in demand due to the closure of the sales outlets, both companies had to close down their plants temporarily, so at the end of the quarter there was a significant decrease in revenue and in EBITDA.

In light of these trends, consolidated revenue of the Italmobiliare Group in the first quarter of 2020 recorded an increase of 19.0 million (+14.5% compared with the same period of 2019) mainly thanks to Italmobiliare (+11.7 million) and Caffè Borbone (+6.5 million). On the other hand, there was a decline in both gross operating profit (negative for 0.4 million euro, down by 18.6 million in the first quarter of 2019) and operating profit (negative for 7.5 million, down by 18.9 million), due to impairment losses on securities and liquid assets and higher non-recurring expenses recorded by Italmobiliare, partially offset by the improvement in Caffè Borbone, Sirap and Italgen.

As regards Italmobiliare SpA, the net financial position at the end of the quarter (after the investment of around 40 million in Santa Maria Novella) is positive for 515.1 million (569.6 million at the end of 2019).

At March 31, 2020 the Net Asset Value of Italmobiliare was 1,637.9 million, a decrease of 103.2 million compared with December 31, 2019 (1,741.1 million), mainly due to the reduction in value of the listed securities in portfolio (essentially HeidelbergCement and Mediobanca shares, the latter held indirectly through FinPriv) following the drastic correction in stock market prices.

The NAV per share amounts to 38.8 euro with a decrease of 6.4% compared with the end of 2019.

At today's meeting, the Board of Directors also adopted the Regulations for the long-term incentive plan 'Italmobiliare 2020-2022 phantom stock grant plan' approved by the shareholders' meeting on April 21 and approved the allocation in favour of the Chief Executive Officer-Chief Operating Officer and certain managers of the Company. Detailed information on the assignment of the Plan will be published in accordance with art. 84-bis, paragraph 5, of CONSOB's Issuers Regulations.

The Financial Reporting Officer of Italmobiliare S.p.A., Mauro Torri, certifies - pursuant to art. 154-bis, paragraph 2 of the Consolidated Law on Finance (Legislative Decree 58/1998) - that the accounting information contained in this press release agrees with the supporting documentation, books of account and accounting entries.

Key economic and financial data