Thursday 13 June 2024
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IVS Group reports 1H consolidated revenues of €167.2m, up 3.5% on year

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GRAND DUCHY OF LUXEMBOURG – The Board of Directors of IVS Group S.A. (Milan: IVS.MI), convened on September 9th, 2021, and chaired by Mr. Paolo Covre, examined and approved the Half Year Report at 30 June 2021, as summarised below. IVS Group S.A. is the Italian leader and the second player in Europe in the business of automatic and semi-automatic vending machines for the supply of hot and cold drinks and snacks (vending).

The core vending business is mainly carried out in Italy (77% of sales), France, Spain and Switzerland, with around 230,000 vending machines; the group has a network of 87 branches and around than 2,750 employees.

IVS Group serves more than 15,000 corporate clients and public entities, with over 600 million vends in 2020.

Summary of results at 30 June 2021

  • Consolidated Revenues: Euro 167.2 million, +3.5%, compared to June 2020.
  • EBITDA reported: Euro 33.4.0 million.
  • Adjusted EBITDA¹: Euro 34.6 million, +6.9% compared to June 2020, with an EBITDA margin on sales of 20.7% (22.7% net of positioning fees).
  • Consolidated Net Profit: Euro 3.7 million (before profits attributable to minorities of Euro 0.1 million).
  • Adjusted Net Profit: Euro 4.8 million (before minorities).
  • Net Financial Debt equal to Euro 328.3 million (including IFRS 16), reduced by Euro 25.5 million compared to 31 December 2020.
  • Completed 2 acquisitions for a value of Euro 2.8 million.

Operating performances

Consolidated revenues in 1 Half 2021 reached Euro 167.2 million (of which 147.5 million related to the core vending business), +3.5% from Euro 161.6 million of 1Half 2020 (Euro 140.9 in vending). Sales increased by 1.3% in Italy, by 2.8% in Spain, 31.5% in France, decreased by 2.2% in Switzerland and increased by 7.5% in Coin Service division.

In all the main markets, 2Q 2021 compensated the decrease of 1Q 2021 vs. 1Q 2020 (when the pandemic effects were just started). France enjoys an increase much higher compared to the other markets thanks to the contribution of Paris Metro contract, although the traffic on public transport in still far from normal conditions as an effect of Covid restrictions.

Coin Service division includes the growing sales in the payment services business (Moneynet), that however generates the largest part of its turnover in the fourth quarter and is still in a turnaround phase, with a negative contribution to the group margins; the sales related to the metal coins business also increased in 1Half 2021.


Acquisitions of the period contributed to sales pro-rata for around Euro 0.2 million.
The total number of vends at June 2021,30th was equal to 316.3 million, +5.0% from 301.3 million at June 2020; the different trend between 1Q 2021-2020 (-17.7%) and 2Q 2021-2020 (+41.7%) is pretty evident. Even in the difficult Covid context, IVS continues to have an acquisition rate of new clients higher than the churn rate.

Average price per vend in 1Half 2021 was equal to Euro 46.64 cents, from 46.77 cents of 1Half 2020 (-0.3%). The average price is still a little below 2019, as it is affected by the lock-down and relevant volumes decrease in the public and travel market segments, that usually enjoy higher average selling prices and added value compared to the corporate sector and where the affiliated customers pay for their drinks via electronic keys.

As an overall comparison to pre-Covid crisis data, the number of vends and sales in the first half and in the second quarter 2021 were still 28% (1Half) and 27% (2Q) lower compared to the corresponding 2019 periods. However, considering that a gradual recovery started only around mid May 2021, thanks to the positive effects of the vaccine campaign on business environment, it is likely that the recovery trend, compared to 2019, might continue along the next quarters.

EBITDA reported is equal to Euro 33.4 million, decreased by 12.9% compared to Euro 38.3 million at June 2020 (that however included an extraordinary income of Euro 8.0 million related to Antitrust fines reimbursement, net of which in 1 Half 2021 the EBITDA Reported improved by 10.2% compared to 2020). Adjusted EBITDA is equal to Euro 34.6 million, +6.9% from Euro 32.3 million at June 2020, with a 20.7% EBITDA margin (22.7% if calculated net of positioning fees).

The recovery of volumes, sales and operating margins is even more significant considering that at June 2021 were still closed or with low presences important client segments, like schools and universities, public and travel locations, as metro, railways stations and airports.

Consolidated Net Result at June 2021 is equal to Euro 3.7 million (before Euro 0.1 million profits attributable to minorities) almost equal to Euro 3.7 million at June 2020. The Net Result Adjusted (before minorities) of the exceptional items is equal to Euro 4.8 million, from a negative results of Euro -2.6 million at June 2020.

Net Financial Position (“NFP”), is equal to Euro -328.3 million (including Euro 51.5 million debt deriving from rent and leasing contracts according to the definitions of IFRS 16), compared to Euro -337.7 at the end of March 2021 and Euro -353.8 million at 31 December 2020 (Euro 394,5 million as of 31 March 2020 at the beginning of the pandemic crisis).

The strong cash generation continued also in the last quarter and in fact, since the start of the Pandemic at the end of 1Q 2020, the group reduced its net financial debt by more than Euro 66 million. Notwithstanding the investment policy is still prudent, during 1Half 2021 were made payments related to net investments for Euro 12.7 million, of which Euro 10.7 million for investment in fixed assets – including those linked to newly acquired businesses and done in previous quarters – and Euro 2.0 million for payments related to acquisitions. Net Financial Debt includes Euro 4.7 million of accrued interest on bonds.

Although reduced in comparison to previous periods, as of 30 June 2021 the group still has significant VAT credits of around Euro 7.6 million, not included in the Net Financial Position. Other significant transactions and events occurred after 30 June 2021, Covid-19 effects and forecast During 2Q 2021 since May, the economic scenario showed a gradual consumptions recovery, as an effect of improved Covid situation.

That had a positive impact also on vending consumptions, even if there are still with strong differences amongst the geographic areas and client segments where IVS operates. In this context, IVS Group succeeded to recover quite satisfactory operating profit levels, thanks to continuous and effective actions aimed at reducing all of the major costs (personnel, rents, positioning fees). Operating profits, associated to a prudent investments, allowed to generate a positive and relevant free cash-flow. The financial situation is therefore increasingly strong, with cash available exceeding normal operating needs, and represent.

¹ Adjusted EBITDA’’: is equal to operating income, increased by depreciation, amortisation, write-downs, non-recurring costs and exceptional in nature.


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