ITALMOBILIARE GROUP (*)
- 2016 FIRST HALF A PERIOD OF TRANSITION, WITH THE SALE OF THE ITALCEMENTI INVESTMENT TO HEIDELBERGCEMENT AND THE RE-DEFINITION OF THE SCOPE OF OPERATIONS, AND PERFORMANCE IS NOT REPRESENTATIVE OF THE FULL YEAR
- REVENUE: 182.6 MILLION EURO (207.5 MILLION EURO IN THE FIRST HALF OF 2015)
- TOTAL LOSS FOR THE PERIOD: 37.6 MILLION EURO (LOSS OF 20.4 MILLION EURO)
- NET ASSET VALUE 2,007.2 MILLION EURO (2,086.2 MILLION EURO AT THE END OF 2015)
- WITH THE GAIN FROM THE SALE OF ITALCEMENTI IN THE SECOND HALF, THE FULL YEAR WILL CLOSE WITH A SIGNIFICANTLY STRONG PROFIT
(*) Data reclassified in compliance with IFRS5 to take account of discontinued operations
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The Italmobiliare S.p.A. Board of Directors examined and approved the half-year report as at and for the six months ended June 30, 2016.
The first half of the year was a period of transition for the Italmobiliare Group, marked by the final stages in the agreement reached in 2015 with HeidelbergCement (finalized on July 1, 2016) and the start-up of the re-definition of its own scope of operations. These changes are reflected in the half-year results, which are therefore not representative of the full-year trend. During the second half of the year, the Italcementi Group will benefit from the income arising from the sale of its equity investment in Italcementi, which will generate a gain of approximately 790 million euro in the parent's separate financial statements, and from the contribution of the new operations currently being acquired, specifically Clessidra.
As a consequence of these initiatives, the first-half income statement (and, for the purposes of comparison, the income statement for the year-earlier period) has been re-stated in 2 compliance with IFRS 5 (accounting treatment of assets held for sale, with profit or loss captions presented separately under a specific heading “Profit (loss) relating to discontinued operations”; similarly, on the statement of financial position, the relevant assets and liabilities are classified as “held for sale”).
The first half of 2016 closed with a substantially stable loss relating to continuing operations (that is, excluding operations sold to HeidelbergCement, the transaction for which was completed on July 1), of 24.6 million euro. Considering the loss relating to discontinued operations (net of the tax effect), the first half closed with a loss of 37.6 million euro (loss of 20.4 million euro in the first half of 2015).
In the industrial segment, the subsidiaries Sirap Gema and Italgen reported a profit for the period. Specifically, the Sirap group (food packaging), net of effects relating to the removal from the scope of consolidation of the thermal insulation segment, which was sold last year, and of exchange-rate effects, reported revenue and margins in line with last year and profit for the period of 2.7 million euro (loss of 22.3 million euro in the first half of 2015, when the segment took a provision for risks of 27.1 million euro in connection with an EU antitrust ruling). Italgen (electric power from renewable sources) closed the first half with profit of 3.1 million euro (4.0 million euro), despite a contraction in revenue due to a fall in energy consumption and adverse weather conditions, which limited hydroelectric power generation.
Although the BravoSolution group (e-procurement) reported an increase in revenue, it posted a loss for the period of 2.5 million euro (loss of 1.3 million euro in the year-earlier period) reflecting the impact of re-organization expense at corporate level. Performance in the financial segment (the Italmobiliare parent and the subsidiary Franco Tosi) was affected, on one hand, by the negative market repercussions of Brexit, which led to impairment losses on the bank stocks portfolio, and, on the other, by the nondistribution of dividends at Italcementi (14.1 million euro collected in the first half of 2015), leading to a loss of 15.8 million euro (profit of 9.2 million euro in the year-earlier period).
The net financial position relating to continuing operations was significantly affected by the effects (approximately 201 million euro) of the acquisition from Italcementi of Italgen, BravoSolution and some properties on June 30. Also considering capital expenditure of 52.9 million euro (14.9 million euro in the first half of 2015), net financial debt relating to continuing operations was 169.7 million euro at June 30, 2016 (a positive position of 55.6 million euro at June 30, 2015). Debt relating to discontinued operations amounted to 1,954.5 million euro at June 30, 2016 (2,137.3 million euro). Overall net financial debt (2,124.2 million euro) was up 2%. The net financial position of the wholly owned financial companies at the end of the first half reflected debt of 83.8 million euro (a positive position of 139.8 million euro at the end of 2015. Total equity at June 30, 2016 stood at 3,974.5 million euro, a reduction of 355.0 million euro from December 31, 2015, arising mainly from the change in the fair value and translation reserves.
The other key results of Italmobiliare Group operations are set out below: Revenue: 182.6 million euro from 207.5 million euro in the first half of 2015; 3 Gross operating profit: 1.2 million euro (gross operating loss of 7.7 million euro); Operating loss: 8.7 million euro (loss of 14.8 million euro);