Thursday 29 September 2022

Caffè Borbone’s performance pushes Italmobiliare’s asset value to new highs

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MILAN, Italy — The Italmobiliare S.p.A. Board of Directors today reviewed and approved the half-year report as at and for the six months ended June 30, 2019. Italmobiliare Net Asset Value at June 30, 2019 increased by 166.4 million euro from the end of 2018 to 1,587.8 million euro. NAV per share rose from 33.9 euro to 37.9 euro.

The value of the seven ‘Portfolio companies’ (which since January 2019 includes Autogas Nord acquired for approximately 60 million euro) increased by over 106 million euro to 586.4 million euro, mainly driven by the good performance of Caffè Borbone and Tecnica Group.

“Over the last 18 months, we have built up a more balanced portfolio of equity investments to optimize the ‘permanent capital’ role Italmobiliare plays through its investments,” said CEO Carlo Pesenti.

“Our shareholdings in the Portfolio companies, close to 600 million euro, almost 40% of NAV, represent an investment with great potential in excellent Italian companies. The portfolio currently consists of 7 companies, which together generate aggregate Ebitda over 150 million euro and aggregated revenue over 1.5 billion euro; in Italmobiliare they have found capital, know-how and managerial expertise to grow in Italy and abroad, where operations of a number of our investees are already significant. Since the end of 2017, we have practically halved our exposure to listed companies and more than doubled our exposure to Portfolio companies. We still have over 400 million euro in cash for new investments to bring together the excellences Italy offers in a variety of fields, including equity investments or co-investments in private equity funds.”

The improvement in NAV, which increased by166.4 million euro, is mainly the result of:

  • the reduction in the value of the listed equity investments (-47.5 million euro) due to the sale of HeidelbergCement AG and Mediobanca S.p.A. shares in the first half, offset in part by the increase in the market value of the remaining shares;
  • the increase in the value of the portfolio companies (+106.3 million euro) due to the acquisition of Autogas Nord (for approximately 60 million euro) and the increase in the fair value of Caffè Borbone and Tecnica Group, offset in part by a decrease in the fair value of Sirap (net increase of 48.4 million euro);
  • the increase in the value of the other equity investments (+30.3 million euro), as the result of the increase in the fair value of Jaggaer.

At June 30, 2019 Italmobiliare S.p.A. NAV per share, excluding treasury shares, was up 11.7% to 37.9 euro (33.9 euro at December 31, 2018).

Summary of results

Italmobiliare S.p.A. closed the first half of 2019 with a profit of 9.2 million euro (25.1 million euro in the year-earlier period, which benefited from a positive income tax effect of 14.4 million euro).

In the first half, the company had net gains on equity investments of 10.1 million euro, down from 18.7 million euro in the first half of 2018, largely as a result of losses on some equity investments. Net gains on investments of cash and cash equivalents amounted to 12.1 million euro (3.5 million euro), mainly thanks to the positive trend in trading equities and funds. Other income and expense reflected net expense of 11.6 million euro, in line with the first half of 2018.

The net financial position at June 30, 2019 was positive at 424.1 million euro, up 79.2 million euro from December 31, 2018. The increase arose largely from the sale of listed securities (more than 142 million euro) and the equity investment in Autogas Nord (approximately 60 million euro).

Equity at June 30, 2019 was 1,330.5 million euro, up 100.4 million euro from December 31, 2018.

At consolidated level, profit for the first half (after income tax expense of 8.7 million euro compared with a positive effect of 13.8 million euro in the first half of 2018) was 24.5 million euro (23.9 million euro in the year-earlier period); profit attributable to owners of the parent was 19.1 million euro (22.3 million euro). Consolidated equity attributable to owners of the parent at June 30, 2018 was 1,312.3 million euro (1,202.5 million euro at the end of 2018).

The other key results of Italmobiliare Group operations were as follows:

  • Revenue: 278.3 million euro from 216.7 million euro in the first half of 2018;
  • Gross operating profit: 52.1 million euro (19.0 million euro);
  • Operating profit: 38.3 million euro (14.0 million euro).

Caffè Borbone (60%)

In general, the first six months saw further important increases in sales of coffee capsules and pods, which, accompanied by a high-profile advertising campaign, enabled the Caffè Borbone group to strengthen its position as a leading industry player.

In particular, the performance of the compatible Nespresso and A Modo Mio capsules continued to be very positive, alongside the recent launch of the Dolce Gusto system.

Strong growth was reported in retail and in some online channels, and GDO activity continued to expand.

First-half revenue confirmed the very positive trend (up 28%), reaching 85.9 million euro, while gross operating profit, at 25.1 million euro, was up by about 45% from the first half of 2018. Profit for the period was 14 million euro.

Net financial debt at the end of the first half was 46.5 million euro, an improvement of 4.7 million euro from December 31, 2018, after payment of a dividend of 8 million euro to the shareholders.

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