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Tuesday 03 December 2024
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IVS Group, Report: recovery of the vending core business and decrease of net financial debt

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LUXEMBOURG (Luxembourg) – Sales increased, compared to the same period of 2020, by 3.1% in Italy and Spain, 35.8% in France and decreased by 5.1% in Switzerland. France, reflects the positive effects of Paris Metro contract, although it is certainly not yet fully running, as Covid is still affecting the number of workers and students on public transports and even more, the tourists flow. Coin Service division sales increased too, +8.2%, and +6.6% in the main metal coins business.

Operating performances

The increase of sales at the end of September 2021 is even more significant considering that:

a) the first quarter 2021, that was still severely affected by the pandemic effects, started with a gap of around -20% compared to first quarter 2020 (that was only partially hit by Covid) and recovery begun only since April/May 2021 and continued in the summer;

b) in some client segments of the vending industry, as public transport and public offices, hospitals, airports, schools and universities, people presence and consequent consumptions, although recovering, are still much lower compared to historical figures.

The total number of vends in the first 9 month of 2021 was equal to 475.4 million, +4,9% from 453.4 million in 9 months 2020.

IVS continues to have an acquisition rate of new clients higher than the churn rate. The average price per vend in the period was equal to Euro 47.6 cents, from 47.1 cents of the corresponding period of 2020 (+1.0%).

The increase is due both to higher unit selling prices (without increase of capex compared to the previous quarters) and to the light recovery – within the total mix – of the sales in public and travel locations, that usually enjoy higher average prices, compared to the corporate sector locations.

Sales in 3Q 2021 increased by 6,8% compared to the same period of 2020 (-20.6% in Q1 and +42.4% in Q2), with a more than proportional increase of margin: l’EBITDA Adjusted increased by 17.9% and l’EBITDA Reported by 18.2%.

During the first 9 months of 2021 were completed 6 relatively small acquisitions, with an Enterprise Value of Euro 4.5 million, contributing around Euro 0.8 million to sales on pro-rata basis from the date of the acquisition.

The increase of operating margins is the result of a constant care on several costs, carried on in parallel with a continuous work of improvement in all the company’s functions.

Consolidated Net Profit at 30 September 2021 is equal to Euro 5.2 million (before profits attributable to minorities of Euro 0.5 million), a strong increase (+89.7%) from Euro 2.7 million at 30 September 2020. The Net Profit Adjusted for the exceptional items is equal to Euro 6.7 million (before minorities), from a loss of Euro -3.2 million profit as of September 2020.

Net Financial Position (“NFP”) is equal to Euro -325.8 million (including debts deriving from rent and leasing contracts according to the new definitions of IFRS 16, for around Euro 49.7 million), with an improvement of Euro 28.0 million from the end of 2020, over Euro 40 million better compared to September 2020 and around 69 million compared to March 2020, considered the starting period of the pandemic crisis.

As of 30th September 2021 the Group has cash available on bank accounts exceeding Euro 100.00 million.

At the end of September 2021 the group has in Italy around Euro 8.7 VAT credit (not included as financial assets in the NFP), with an increase from Euro 7.6 million at June 2021.

During 3Q 2021 there was also an increase of funds used for working capital due to variations in trade creditors/debtors and stocks, mostly related to the volumes increase.

Other significant transactions and events occurred after 30 September 2021

On 10 November 2021 an amount of Euro 3.2 million of VAT credit has been reimbursed (another Euro 2.3 million request of reimbursement has been presented).

The integration agreement between IVS Group and Liomatic Group

On 22 November 2021 it was announced the signing of an important integration agreement between IVS Group and Liomatic Group, an historical leader in the Italian vending sector, especially in Central Italy, with sales 2020 exceeding Euro 100 million (144 million pre Covid).

The transaction includes Liomatic S.p.A. and its controlled companies, some qualified minority shareholdings in Italy and in other European markets and functional real estate properties.

This is a business combination that will significantly enhance the size and the strategic relevance of IVS Group in the markets where the group is active, especially Italy where market share will be close to 20%.

Since 2Q 2021, consumptions gradually recovered, due to the improved Covid situation and economy acceleration, with positive effects on vending volumes, even if there are still strong differences amongst the geographic areas and client segments where IVS operates. The trend seems positive, with prospects of further improvement in the last quarter, with no new negative events in the pandemic situation.

Although working in a context that is still far from normality, IVS Group proved its capacity to maintain good operating profit levels, generating every quarter significant free cash-flows.

The group effectively faced the negative effects of the pandemic, slowing, but never stopping the investments, that are deemed essential to keep its competitive advantage and consolidate its growth strategy.

The economic and financial situation is strengthening and, as mentioned in previous quarters, it is the base for further growth phases, in absolute value and in market share, in all those markets where the group is active.

CIMBALI

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