MILAN, Italy – The Italmobiliare SpA Board of Directors yesterday reviewed and approved the consolidated financial statements and the draft financial statements of the Company at December 31, 2019. Italmobiliare S.p.A. is an investment holding company listed on the Milan Stock Exchange owner of a majority stake in Caffè Borbone, one of the top names on the national market and a leading supplier of single serve coffee.
Net Asset Value (Nav)
The Net Asset Value (NAV) of Italmobiliare at December 31, 2019 amounted to 1,741.1 million euro, an increase of 319.7 million compared with the end of 2018 (1,421.4 million). The main change in the NAV concerned the increase of 265 million in the Portfolio Companies, mainly linked to the increase in the value of Caffè Borbone and Tecnica Group (for approximately 181 million) and to the new investments in Autogas and Capitelli (for approximately 83 million).
The carrying amount of the investments in Private Equity Funds also rose to over 158 million (+29.3 million): worth noting the exit from the Aksia and Ambienta funds and the entry into BDT III, Iconiq and Connect. There has been a decline in the components linked to listed equity investments (approximately -145 million following disposal of the investments in HeidelbergCement and Mediobanca) and other equity investments (-51 million, mainly due to the sale of the investment in Jaggaer).
The carrying amount of financial assets, trading and cash at the end of 2019 increased by approximately 225 million to 569.6 million, also taking into account disposals during the period.
Italmobiliare S.p.A. – Summary of Results
Italmobiliare S.p.A. closed 2019 with a profit of 19.7 million. Comparison with the 2018 balance of 19.8 million has to take into account the positive tax effects for over 19 million that characterised the previous year, compared with tax of 10.9 million at December 31, 2019. The profit (loss) before tax increased to 30.6 million with an increase of almost 30 million compared with the end of 2018 (0.7 million).
The company posted net gains of 8.1 million on equity investments, a reduction from 23.8 million at December 31, 2018 due to the write-down of some equity investments (-14.3 million) and the reduction in dividends (1.4 million).
Net gains and losses on investments of cash and cash equivalents, on the other hand, increased sharply to 47.2 million, mainly due to the positive performance of investment and private equity funds (+40.6 million) and held for trading equity investments (+13.5 million), partially offset by the decrease in derivatives (7.0 million).
Other income and charges show a negative balance of 24.8 million, an increase of 1.6 million mainly due to higher provisions for risks.
At December 31, 2019 the net financial position of Italmobiliare SpA is positive for 569.6 million, up 224.7 million from 344.9 million at the end of 2018.
The main flows include the sale of HeidelbergCement and Mediobanca shares (222.9 million), the sale of the investment in Jaggaer (91.2 million) and investments for the acquisitions of Autogas (60.1 million) and Capitelli (22.7 million).
At consolidated level, taking into account the overall positive performance of all the portfolio companies, profit attributable to owners of the parent company rises to 63.5 million from 27.7 million at the end of 2018 and the consolidated equity attributable to owners of the parent company marks an increase to 1,358.7 million (1,202.5 million at the end of 2018).
The other main economic results of the Italmobiliare Group are:
- Revenue and income: EUR565.9 million or US$630,67 million (463.1 million at December 31, 2018)
- EBITDA: 125.9 million US$140.31 million (41.2 million)
- EBIT: 97.1 million US$108.2 million (21.3 million).
Italmobiliare S.p.S. – Dividend
Taking into account the Company’s significant growth trend in the last three years (2017-2019), the Board of Directors of Italmobiliare will propose to the Shareholders’ Meeting of April 21, 2020 an ordinary dividend of 0.60 euro per share (0.55 euro per share in 2018) and an extraordinary dividend of 1.20 euro per share.
Taking into account the 310,070 treasury shares in the portfolio as of today, the distribution will take place out of the entire profit of Euro 19,730,026 and out of retained earnings for the balance of Euro 56,211,848. Note that this amount could differ if there is a change in the number of treasury shares in the Company’s portfolio on the record date.
The dividend will be paid on May 6, 2020, going ex-coupon on May 4, 2020 (with a record date of May 5, 2020).
Caffè Borbone (60%)
Caffè Borbone, third-largest player in Italy after Lavazza and Nespresso in single-dose coffee capsules and pods, confirmed the strong increase in activity in 2019, supported in particular by growth in the GDO sector (+77% compared with +9% overall in the single-dose coffee channel) and the positive trend recorded by retailers, who are confirmed as the main sales channel, with a growth rate substantially in line with the average. A trend that has been repeated in the first part of 2020.
The 2019 financial statements close with revenue of 172.6 million, an increase of 28% compared with 2018, and EBITDA of 52.0 million (+52%): profit margins decidedly better at 30% (+4.8 p.p. compared with the previous year), mainly thanks to the effect of higher volumes on the absorption of overheads and despite the significant investment in communication to support the positioning of the Caffè Borbone brand.
Profit for 2019 stood at 34.2 million, more than double what it was in 2018.
The net financial debt at December 31, 2019 amounted to 31.6 million, with positive cash generation during the year of 27.6 million, gross of the 8 million of dividends paid in the second quarter of 2019.
