GRAND DUCHY OF LUXEMBOURG – The Board of Directors of IVS Group S.A., convened on November 14th, 2024, and chaired by Mr. Paolo Covre, examined and approved the Interim Financial Report at 30 September 2024, as summarised below.
Summary of results at 30 September 2024
Consolidated Revenues: Euro 542.9 million, +0.8%, compared to September 2023. Ebitda reported: Euro 82.1 million (+4.4%). Ebitda Adjusted: Euro 83.4 million, +2.4%. Ebit reported: Euro 21.9 million. Ebit Adjusted Euro 23.1 million. (+5.6%).
Consolidated Net Profit: Euro 3.9 million. Net Profit Adjusted: Euro 5.3 million. Net Financial Debt equal to Euro 445.3 million (including Euro 57.1 million debt related to IFRS 16). Completed 10 acquisitions in the first 9 months of 2024 in Italy, Poland and Spain, for a value of Euro 8.8 million.
Operating performances
Consolidated revenues at 30 September 2024 reached Euro 542.9 million, +0.8% compared to Euro 538.6 million at 30 September 2023.
The operating businesses areas showed the following sales (before intra group elisions).
1) Vending business: Euro 425.3 million, +3.2% compared to Euro 412.1 million at 30 September 2023.
2) Resale business: Euro 77.6 million, -22% from Euro 99.5 million at 30 September 2023. 2023 included some extraordinary sales to Eastern Europe countries, ceased after the war in Ukraine.
3) Ho.re.ca. business: Euro 22.4 million, +36.6% from Euro 16.3 million at September 2023.
4) Coin division business: Euro 30.3 million (+8.2%), from Euro 28.0 million.
The total number of vends at 30 September 2024 was equal to 729.3 million, -1.5% from 740.3 million at 30 September 2023. Average price per vend (net of VAT) was equal to Euro 54.56 cents, from 52.30 cents (+4.3%) of the same period of 2023.
Acquisitions completed in the first 9 month of 2024 contributed to sales pro-rata temporis for Euro 1.6 million.
EBITDA is equal to Euro 82.1 million, increased by 4.4% compared to Euro 78.7 million at September 2023. EBITDA Adjusted is equal to Euro 83.4 million, +2.4% from Euro 81.4 million at September 2023.
EBITDA was affected by decrease of total vending volumes (although with differences amongst geographic areas) and in the resale business and by the costs increase for contracts renewals, mostly compensated by average selling price increase in vending and by the good performances of other business areas.
Consolidated EBIT increased by 14.2%, to Euro 21.9 million from Euro 19.2 million. EBIT Adjusted increased to Euro 23.1 million, +5.6% from Euro 21.9 million at September 2023.
Consolidated Net Profit at September 2024 is equal to Euro 3.9 million. Net Profit Adjusted for the exceptional items is equal to Euro 5.3 million (before Euro 0.2 million attributable to minorities).
Net Financial Position (“NFP”), is equal to Euro -445.3 million (including Euro 57.1 million debt deriving from rent and leasing contracts according to the definitions of IFRS 16, Euro 6.6 million higher than the previous quarter), from Euro -421.1 million at the end of 2023 (with Euro 62.4 million of IFRS 16 debt).
In the Net Debt are included Euro 8.6 million interests accrued on the bond expiring on October 2026, while is not included the VAT credit (Euro 8.8 million at the end of September 2024).
During the first nine months of 2024 the group generated an operating cash-flow of Euro 81.2 million, increased from Euro 77.4 million in the first nine months of 2023). In the period there was a remarkable amount of cash absorbed by the increase of working capital (Euro 11.8 million).
In the first nine months of 2024 increased also payments for net Capex, to Euro 49.2 million (Euro 38.5 million at 30 September 2023) and for M&A, equal to Euro 8.7 million, from Euro 3.3 million at September 2023).
Other significant events occurred after 30 September 2024 and prospects for the year
2024 is showing, all around Europe, an overall gradual weakening of industrial production, accompanied by a reduction of hours worked and by a decrease in vending volumes in working places, that are recovered only in part by the good trend in travel locations, linked to tourism flows.
Inflation, although declining in the last months, determined an increase in all the main costs, that are gradually recovered through a continuous process of selling price adjustment, whilst some food commodities, like coffee, registered increase much higher than inflation.
In order to face these unfavorable market trends, the group is accelerating, also with the merger between some of its legal entities, the search for higher savings and industrial synergies; but not renouncing to a significant policy of industrial investments, and to new acquisitions, aimed at increasing its services value and to a European growth strategy.
The conclusion of the Voluntary Totalitarian Tender Offer (OPA) announced and started in the last quarters and completed at the end of October 2024 with the delisting of IVS Group shares, is also consistent with this mid- and long-term strategy.
The balance on detail
