Newlat Food grows in 2020
The group aims to reach a billion in turnover within 24 months
The board of directors of Newlat Food Spa approved the figures for 2020. The consolidated pro forma revenues of the Group in 2020 amounted to Euro 516.9 million, up 3.2% compared to 2019, on a like-for-like basis of consolidation. The consolidated proforma EBITDA of the Group was equal to Euro 49.6 million compared to Euro 35 million in the previous year. Proforma consolidated normalized EBITDA instead amounted to Euro 51.4 million, an increase of 44.1% compared to 2019. The consolidated net result was Euro 38.6 million compared to Euro 7.2 million in 2019. As of net of income from business combinations and non-recurring charges, the normalized net result is equal to Euro 15.6 million. The net financial position, including the effects of IFRS 16, is positive for Euro 5.2 million. Excluding the effect of IFRS 16 lease liabilities, the NFP is positive for Euro 24.2 million.
Revenues relating to the Pasta segment increased by 7.5% due to an increase in sales volumes, especially with reference to the German market. Revenues relating to the Milk Products segment recorded a slight increase due to an increase in sales volumes in the large-scale distribution channel, net of a decrease in volumes in the Ho.Re.Ca. consequently to the scarce tourism caused by the national and international lockdowns. Revenues relating to the Bakery Products segment recorded an increase of 9.6% due to an increase in sales volumes, in particular of bread substitutes. Revenues relating to the Dairy Products segment recorded a slight increase as a result of an increase in sales volumes. Revenues relating to the Special Products segment did well (+ 11.3%). Revenues relating to the Other Products segment recorded a decrease due to a decrease in sales volumes linked to the effects of the COVID-19 pandemic in the Food Service sector.
During 2020, the Group made investments for a total of Euro 17.5 million. Investments in tangible fixed assets mainly relate to purchases of plant and machinery, mainly attributable to projects for updating and renewing the production and packaging lines as well as an innovative automated warehouse at the Turin plant. Finally, exports are growing which, thanks to the excellent performance in Germany, is now worth approximately 33% of turnover overall.
Angelo Mastrolia, the Chairman of Newlat Food, commented: “2020 was a particularly challenging year in light of the COVID-19 pandemic. In this last year it was essential to reconcile the protection of the health of our employees and the increasing demand for food products, both nationally and internationally. 2020 was, moreover, the first year that we faced in full as a listed company and, despite the difficulties due to the pandemic also in terms of investors relations and the performance of the stock, we are satisfied as the Company has shown great competence in relating to the market and in maintaining the commitments undertaken during the IPO phase. The year that has just ended has also marked the year of an important acquisition that has allowed us to reach the first half billion Euros in revenue, a goal that is not to be taken for granted in view of the difficulties encountered during the pandemic. The result of the acquisition is even more significant if we consider that in a few months we turned around a company – Centrale del Latte d’Italia S.p.A., which in 2019 had closed its accounts with a heavy loss – and made it performing and profitable. The overall Group result for 2020 allows us to look to the future with optimism, having achieved an EBITDA of € 51.4 million and a net profit of € 38.6 million. These results have allowed us to generate an excellent FCF which, together with the resources collected with the placement of the Bond issued in February 2021, allow us to have considerable resources available to continue with the external growth strategy in order to achieve, within the next 12-24 months, a billion euros in turnover. Our management is committed to achieving the objectives of further growth through acquisitions and, considering the various dossiers we are examining, we are confident that an important acquisition can be announced by 2021”.
EFA News - European Food Agency