- Consolidated revenues of approx. € 35.5 million (approx. € 32.5 million in the first half of 2019, +9.4%)
- Adjusted consolidated EBITDA of approx. € 13.2 million and equal to 37.2% of revenues (€ 12.1 million in the first half of 2019, +9.5%)
- Adjusted consolidated net profit of approx. € 8.2 million (€ 7.2 million in the first half of 2019, +14.5%)
- Consolidated NFP/available funds at 30 June 2020 of approx. € 19.8 million (€ 29.3 million at December 31st, 2019)
SICIT Group’s Board of Directors approved today the Consolidated Interim Financial Report at 30 June 2020.
Massimo Neresini, CEO of SICIT, said: “The first half of 2020 was characterized by two major challenges for the Group: at the beginning of the year the activities for the translisting to the MTA, which took place successfully and very quickly; from the second quarter the COVID-19 pandemic spread in many geographical areas where the Group operates. SICIT continued its production and business activities even in the periods of greatest crisis in Italy, being one of the essential activities, but the restrictions on mobility, transport and production in the upstream and downstream have inevitably affected some of our reference sectors, in particular due to the temporary closure of some clients operating in the construction sector and many suppliers of raw materials. In spite of all this, we have continued our production and distribution activities, in full compliance with regulations, positioning ourselves as a reference point for employees and partners. SICIT has demonstrated over the years its ability to adapt and, thanks to the availability and skills of its operating staff, has been able to react promptly even to the difficult situations that we experienced in this first half of the year. Our products and services remain fundamental for the growth and development of both the local industrial environment in which we produce and the global markets in which we sell our products, in particular biostimulants for agriculture. We therefore look to the future with confidence, despite the greater uncertainty that the COVID-19 has brought with it“.
SICIT Group’s consolidated revenues for the first half of 2020 amounted to € 35.5 million, up by € 3 million or +9.4% on the same period of the previous year (€ 32.5 million). The exchange rate effect, slightly positive, was approximately + € 0.1 million (0.2%).
This increase was mainly generated by the growth in agricultural products (+ € 3.5 million, +19.4%) partially offset by the slight decrease in revenues in other sectors, including collection services. In particular, plaster products were affected, especially in the second quarter, by the temporary closure of some clients (plaster plants). Revenues from the fat and collection services sector, on the other hand, were affected by the temporary closure of the main tanneries in the Vicenza district in March-April and the consequent slowdown in the transfer of animal by-products.
The growth affected almost all geographical areas: from Europe (including Italy, +3.2%; of which Italy +1.3% and other countries in Europe +4.6%) to APAC (+16.4%) and Americas (+42.3%). The only area in countertrend was the Rest of the World (Middle East and Africa, -2.8%). The growth of Europe, APAC and Latam was mainly driven by agricultural products, partially offset by the decline in plaster retardants. North American growth is entirely attributable to retardant products.
Adjusted consolidated EBITDA
Adjusted consolidated EBITDA amounted to € 13.2 million in the first half of 2020 (37.2% of revenues), up by € 1.1 million (+9.5%) compared to the first half of 2019 (€ 12.1 million, 37.2% of revenues).
The increase in absolute value was mainly due to the growth in revenues and the related industrial margin, partially offset by higher fixed costs linked to the translisting to the MTA (Italian Equities Market) and the adjustment of the post-listing governance structure, as well as higher production costs (employees and amortisations) partly incurred to ensure continuity of operations for clients even during the lockdown. Adjusted EBITDA remains stable as a percentage of revenues compared to the first half of 2019 (37.2%) mainly due to lower revenues from the contribution of materials and the slight increase in some costs mentioned above.
Adjusted EBITDA does not include non-recurring costs of € 1.8 million in the first half of 2020 for non-recurring taxes for the translisting from the AIM Italia to the MTA, STAR segment (€ 1.1 million, of which € 0.9 million for advice services and € 0.2 million for non-recurring bonuses to employees and directors), sanitization and safety costs following the health crisis linked to COVID-19 (€ 0.1 million) and non-recurring donations to health facilities linked to COVID-19 (€ 0.6 million). In the first half of 2019 non-recurring costs amounted to € 10.8 million, of which € 0.6 million for non-recurring advice services for the merger of SICIT 2000 S.p.A. into SprintItaly S.p.A. and listing at AIM Italia, and € 10.2 million as listing cost from the record of the merger of SICIT 2000 S.p.A. into SprintItaly S.p.A. as a “reverse acquisition” operation, in compliance with IFRS 2 (non-monetary costs and not relevant for tax purposes).
Adjusted consolidated net profit
The adjusted consolidated net profit grew substantially in line with adjusted EBITDA (+ € 1 million, +14.5%) and amounted to € 8.2 million in the first half of 2020 (€ 7.2 million in the first half of 2019).
Consolidated NFP/available funds
Consolidated NFP/available funds at 30 June 2020 amounted to € 19.8 million (€ 29.3 million at 31 December 2019). Operating cash flow, in the first half of 2020, was positive for € 8.7 million before outflows for net investments for € 5.1 million, income tax of € 3.8 million – of which € 3.7 million from the substitute tax on the greater carrying amount allocated to the Plastretard trademark and goodwill arising from the merger deficit following the merger by incorporation of Sicit 2000 S.p.A. into SprintItaly S.p.A. Moreover, in the first half of 2020, SICIT paid dividends worth about € 8.8 million and purchased treasury shares for a total value of about € 0.5 million.
Similarly to previous years, in the first half of 2020, SICIT Group continued its investing activities in order to improve processes and products and expand production capacity. The main investments related to:
- Expanding the agronomic, chemical and quality control laboratories at the Arzignano site, to improve and strengthen the research and development of new products, and quality control together with its customers
- Expanding the storage tanks and the new warehouses at the Arzignano site, to ensure greater flexibility and effectiveness in responding to growing customer demand
- Completing the plant for the production of protein hydrolysate from animal hair treatment
- Launching the investment in the new animal fat refining and re-esterification plant, to obtain high-quality biofuel