ALKEMY S.P.A.
IN THE FIRST QUARTER 2024 TURNOVER IN LINE WITH EXPECTATIONS (+1%)
NET OPERATING CASH FLOW AT €4.1 MILLION
In Q1 2024 turnover slightly increased, net operating cash generation at
€ +1.8 million compared to Q1 2023.
Focus on the implementation of the new organization with the aim of
recovering organic growth starting from H2 2024
The Board of Directors of Alkemy S.p.A. today approved the Interim Financial Report at March 31st, 2024.
- Q1 2024 consolidated turnover at Euro 28.4 million, +1.3% if compared to Euro 28.0 million in Q1 2023.
- Q1 2024 Adjusted EBITDA1 at Euro 2.3 million, -7.8% if compared to Q1 2023 (Euro 2.5 million). Q1 2024 Adjusted EBITDA margin2 at 8.2%, -0.8 percentage points if compared to Q1 2023 (9.0%), mostly due to higher operating costs.
- Q1 2024 EBIT at Euro 0.9 million, -32.7% compared to Euro 1.3 million in Q1 2023, mostly due to higher amortization costs linked to investments made starting from H2 2023.
- Q1 2024 EBT at Euro 0.4 million (Euro 0.8 million in Q1 2023), mainly as a result of the dynamics described above, despite lower financial charges recorded in the quarter.
- Q1 2024 consolidated Net Profit at Euro 0.2 million, -63.4% compared to Euro 0.7 millioni n Q1 2023.
- Q1 net Operating Cash Flow at Euro 4.1 million, compared to Euro 2.3 million in Q1 2023, mainly as a result of Net Working Capital dynamics.
- Group Net Financial Position (NFP) at March 31st, 2024 was negative at Euro -28.7 million, improving compared to the December 31st, 2023 NFP (Euro -31.8million), mostly as a consequence of the timely repayment of financial debt.
Milan, May 15th, 2024 - The Board of Directors of Alkemy S.p.A. ("Alkemy", "the Company" or "the Group"), a leading company in the business model evolution of large and medium-sized companies listed on Euronext STAR Milan of Borsa Italiana (ALK), today approved the Interim Financial Report at March 31st, 2024.
Despite the persistence of a general situation of uncertainty on the national and European economic markets, and despite the expected slowdown linked to the implementation of the new internal organization, in the first quarter of 2024 Alkemy recorded an organic growth in
- Adjusted EBITDA: Net operating revenues minus operating costs excluding non-recurring expenses and income.
- Adjusted EBITDA margin is the ratio between Adjusted EBITDA and consolidated turnover.
Alkemy S.p.A. | |
Via San Gregorio 34, 20124 Milano | Via Guarino Guarini 4, 10123 Torino |
Sede legale, operativa e amministrativa | Lungotevere dei Mellini 44, 00193 Roma |
C.F. e P.I. 05619950966 Reg. delle imprese di Milano | Via Dexart 18, 09126 Cagliari |
Cap. Soc. 595.534,32 euro i.v. | Via Pedro Alvares Cabrai 16, 87036 |
Rende | |
info@alkemy.com | www.alkemy.com |
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turnover, +1.3% compared to 1Q 2023, and a positive generation of net operating cash (€4.1 million, +81.8% compared to 1Q 2023).
"In the first quarter of 2024, as expected, we recorded a slowdown in growth due to the new organization, which has not yet become fully operational, and to some dynamics linked to the Spanish subsidiary Alkemy Iberia and our Mexican branches. Thanks to the new organization and an expected more favorable market scenario, we are reasonably confident that our commitment in the first two quarters will allow us to aim for a second half of the year characterized again by organic growth and a gradual improvement in margins," commented the CEO, Duccio Vitali.
Financial Data Analysis
+1.3% Group Turnover Growth in Q1 2024, at Euro 28.4 million, compared to Euro 28.0 million in Q1 2023. This result is mostly due to the contribution of the Italian subsidiaries of the Group.
Revenues in Italy, representing the 63.2% of total turnover, grew +3.8% YoY at Euro 18.0 million (Euro 17.3 million in Q1 2023). The positive result of the Italian companies was due to the ongoing attention to the key clients and to the widening of the client base enabled by the Go- to-Market team.
In Q1 2024, Group foreign companies recorded an overall turnover decline of 2.7%. This result is linked to some dynamics that involved some customers of the subsidiaries Alkemy Iberia and Alkemy Latam, despite the good performance of InnoCV, the Spanish company specialized in Tech and Data, acquired in July 2022.
Q1 2024 Adjusted EBITDA at Euro 2.3 million, -7.8% if compared to Q1 2023 (Euro 2.5 million), mainly due to the higher operating costs recorded. In particular, net of non-recurring costs, we note the 7.7% increase in costs for services following the different sales mix, compared to a 2.5% drop in personnel costs, whose units remained almost unchanged in absolute terms (922 units in 1Q 2024, compared to 926 units in 1Q 2023).
Q1 2024 Adjusted EBITDA margin was 8.2%, down by 0.8 pps compared to Q1 2023 (9.0%).
Q1 2024 EBIT at Euro 0.9 million, was down by -32.7% compared to Euro 1.3 million in Q1 2023, due to higher depreciation and amortization in the quarter, following investments made starting from H2 2023. Q1 2024 EBT at Euro 0.4 million was down by -45.5% compared to Euro 0.8 million in Q1 2023, despite a -13.3% decline in financial charges for the period.
Q1 2024 Net Result for the Period at Euro 0.2 million, -63.4%compared to Euro 0.7 million in Q1 2023.
Alkemy S.p.A. | |
Via San Gregorio 34, 20124 Milano | Via Guarino Guarini 4, 10123 Torino |
Sede legale, operativa e amministrativa | Lungotevere dei Mellini 44, 00193 Roma |
C.F. e P.I. 05619950966 Reg. delle imprese di Milano | Via Dexart 18, 09126 Cagliari |
Cap. Soc. 595.534,32 euro i.v. | Via Pedro Alvares Cabrai 16, 87036 |
Rende | |
info@alkemy.com | www.alkemy.com |
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Net operating cash flow at March 31st, 2024, was positive at Euro 4.1 million, up by Euro 1.8 million compared to Euro 2.3 million in Q1 2023, mostly as a consequence of the Net Working Capital dynamics.
Group Net Financial Position (NFP) on March 31st, 2024, was negative at Euro -28.7 million, improving compared to December 31st, 2023 NFP at Euro -31.8 million. The change (Euro +3.1 million) is mostly due to Euro +3.0 million decline in outstanding bank loans, resulting from the combined provisions (i) of the advance invoice transactions for the period, with a total of Euro +1.3 million, (ii) of the repayment of the envisaged installments of the amortization plans for Euro +2.0 million and (iii) the obtaining of new short-term loans for Euro -0.3 million.
Outlook
At the date of approval of the Consolidated Interim Report at March 31st, 2024, it is believed that the evolution of the business over the next few months of the current financial year promises a further moderate growth in revenues for the Group, especially starting from the second half of the year.
In terms of margins, the expectation is for a further partial contraction in the next quarter, following both the different mix of expected revenues and the impact of the increases in labor costs due to the renewal of the Commerce National Collective Labor Agreement, operational since last April. However, a first partial recovery in margins is expected in the second part of the year, following the entry into force of the new commercial organisation.
***
The Manager in charge of preparing the corporate accounting documents, Claudio Benasso, pursuant paragraph 2 of art. 154-bis of the Consolidated Law of Finance (TUF), declares that the accounting information contained in this press release corresponds to the documentary results, books, and records accounting.
***
The financial schemes in annex are in line with the contents of the Interim Financial Report at March 31st, 2024, approved today by the Board of Directors.
The Interim Financial Report at March 31st, 2024, will be made available to the public, in accordance with the law, at the registered office, located in Via San Gregorio 34, Milan (MI), in the "Investor Relations" section of the Company's website (www.alkemy.com) and on the eMarket Storage mechanism (www.emarketstorage.com).
***
Q1 2024 results will be presented to the financial community in a dedicated conference call that will be hosted later today on May 15th, 2024, at 6:00 PM (CEST)
Alkemy S.p.A. | |
Via San Gregorio 34, 20124 Milano | Via Guarino Guarini 4, 10123 Torino |
Sede legale, operativa e amministrativa | Lungotevere dei Mellini 44, 00193 Roma |
C.F. e P.I. 05619950966 Reg. delle imprese di Milano | Via Dexart 18, 09126 Cagliari |
Cap. Soc. 595.534,32 euro i.v. | Via Pedro Alvares Cabrai 16, 87036 |
Rende | |
info@alkemy.com | www.alkemy.com |
3
To connect to the conference call, you may use the most appropriate among the following dial-in numbers: IT: +39 02 802 09 11
UK: +44 1 212818004
Switzerland: +41 225954728
France: +33 170918704
Spain: +34 917699498
USA: +1 718 7058796
Supporting slides will be made available on the Company website (www.alkemy.com) in the Investor Relations section prior to the call.
Alkemy S.p.A. | |
Via San Gregorio 34, 20124 Milano | Via Guarino Guarini 4, 10123 Torino |
Sede legale, operativa e amministrativa | Lungotevere dei Mellini 44, 00193 Roma |
C.F. e P.I. 05619950966 Reg. delle imprese di Milano | Via Dexart 18, 09126 Cagliari |
Cap. Soc. 595.534,32 euro i.v. | Via Pedro Alvares Cabrai 16, 87036 |
Rende | |
info@alkemy.com | www.alkemy.com |
4
ANNEX
CONSOLIDATED PROFIT & LOSS OF ALKEMY GROUP
Values in Euro/000 | |||
Q1 2024 | Q1 2023 | ||
Revenues | 27,963 | 27,353 | |
Other Proceeds | 434 | 681 | |
Total operating revenues | 28,397 | 28,034 | |
Costs for services, goods, and other operating costs | (12,728) | (11,792) | |
- of which non recurrent | (37) | (4) | |
Personnel costs | (13,427) | (14,002) | |
- of which non recurrent | (41) | (272) | |
Total operating costs | (26,155) | (25,794) | |
EBITDA | 2,320 | 2,240 | |
Adjusted EBITDA | 2,242 | 2,516 | |
D&A | (1,208) | (923) | |
Provisions and write-downs | (156) | (13) | |
Operating result | 878 | 1,304 | |
Other financial income | 164 | 178 | |
Other financial charges | (615) | (698) | |
Profit (Loss) before taxes | 427 | 784 | |
Income taxes | (189) | (134) | |
Profit (Loss) for the period | 238 | 650 | |
Attributable to: | |||
- Group | 219 | 645 | |
- Minorities | 19 | 5 |
Alkemy S.p.A. | |
Via San Gregorio 34, 20124 Milano | Via Guarino Guarini 4, 10123 Torino |
Sede legale, operativa e amministrativa | Lungotevere dei Mellini 44, 00193 Roma |
C.F. e P.I. 05619950966 Reg. delle imprese di Milano | Via Dexart 18, 09126 Cagliari |
Cap. Soc. 595.534,32 euro i.v. | Via Pedro Alvares Cabrai 16, 87036 |
Rende | |
info@alkemy.com | www.alkemy.com |
5
Consolidated Balance Sheet of Alkemy Group
Values in Euro/000 | ||
Assets | Mar. 31st, 2024 | Dec. 31st, 2023 |
Non-current assets | ||
Property, plant, and equipment | 1,875 | 1,939 |
Rights of Use assets | 6,056 | 6,274 |
Goodwill | 54,869 | 54,871 |
Intangible assets | 1,995 | 2,079 |
Minorities | 5 | 5 |
Other financial assets | 202 | 245 |
Deferred tax assets | 1,833 | 1,818 |
Other non-current receivables and assets | 344 | 295 |
Total non-current assets | 67,179 | 67,526 |
Current assets | ||
Trade receivables | 38,545 | 45,929 |
Other financial assets | 128 | 107 |
Tax credits | 2,617 | 2,258 |
Other current assets | 3,169 | 2,470 |
Cash and Cash equivalents | 12,029 | 12,029 |
Total current assets | 56,488 | 62,793 |
Total assets | 123,667 | 130,319 |
Alkemy S.p.A. | |
Via San Gregorio 34, 20124 Milano | Via Guarino Guarini 4, 10123 Torino |
Sede legale, operativa e amministrativa | Lungotevere dei Mellini 44, 00193 Roma |
C.F. e P.I. 05619950966 Reg. delle imprese di Milano | Via Dexart 18, 09126 Cagliari |
Cap. Soc. 595.534,32 euro i.v. | Via Pedro Alvares Cabrai 16, 87036 |
Rende | |
info@alkemy.com | www.alkemy.com |
6
Consolidated Balance Sheet of Alkemy Group
Values in Euro/000 | ||
Liabilities and Group Equity | Mar. 31st, 2024 | Dec. 31st, 2023 |
Equity | ||
Share Capital | 596 | 596 |
Reserves | 46,752 | 43,184 |
Net income (Loss) for the period | 219 | 3,463 |
Group Equity | 47,567 | 47,243 |
Minorities | 491 | 473 |
Total Equity | 48,058 | 47,716 |
Non-current liabilities | ||
Financial liabilities | 10,933 | 12,007 |
Rights of Use liabilities | 4,059 | 4,396 |
Put option and earn-out liabilities | 9,664 | 9,553 |
Employees' leaving entitlement | 6,397 | 6,477 |
Provisions | 108 | 107 |
Deferred Tax liabilities | 18 | 18 |
Total non-current liabilities | 31,179 | 32,558 |
Current liabilities | ||
Financial liabilities | 9,667 | 11,620 |
Rights of use liabilities | 2,224 | 2,110 |
Put option and earn-out liabilities | 4,275 | 4,202 |
Trade payables | 15,565 | 16,196 |
Tax liabilities | 2,623 | 3,174 |
Other liabilities | 10,076 | 12,743 |
Total Current liabilities | 44,430 | 50,045 |
Total liabilities | 75,609 | 82,603 |
Total liabilities and Group Equity | 123,667 | 130,319 |
Alkemy S.p.A. | |
Via San Gregorio 34, 20124 Milano | Via Guarino Guarini 4, 10123 Torino |
Sede legale, operativa e amministrativa | Lungotevere dei Mellini 44, 00193 Roma |
C.F. e P.I. 05619950966 Reg. delle imprese di Milano | Via Dexart 18, 09126 Cagliari |
Cap. Soc. 595.534,32 euro i.v. | Via Pedro Alvares Cabrai 16, 87036 |
Rende | |
info@alkemy.com | www.alkemy.com |
7
CONSOLIDATED CASH FLOW STATEMENT OF ALKEMY GROUP
Values in Euro/000
Mar. 31st, 2024 | Mar. 31st, 2023 | |
Operating activities | ||
Net profit (loss) for the period | 238 | 650 |
Financial income | (164) | (178) |
Financial charges | 615 | 698 |
Income taxes | 189 | 134 |
D&A | 1,208 | 923 |
Provisions and write-downs | 156 | 13 |
Share-based compensation | 10 | 40 |
Change in trade receivables | 7,241 | 2,384 |
Change in trade payables | (569) | (2,235) |
Decrease (increase) in other assets | (1,096) | 24 |
Increase (decrease) in other liabilities | (3,384) | 123 |
Cash flow generated (absorbed) by operating activities | 4,444 | 2,576 |
Paid financial charges | (262) | (184) |
Paid income taxes | (76) | (133) |
Net Cash flow generated (absorbed) by operating activities | 4,106 | 2,259 |
Investment activities | ||
(Investment) disinvestment of tangible and intangible assets | (495) | (492) |
Net Cash flow generated (absorbed) by investment activities | (495) | (492) |
Financing activities | ||
Change in financial debt | (2,998) | (1,773) |
Change in IFRS 16 financial liabilities | (570) | (476) |
Change in treasury shares | (43) | - |
Dividends to minorities | - | (214) |
Put options repayment | - | (40) |
Net Cash Flow generated (absorbed) by financial activities | (3,611) | (2,503) |
Increase (decrease) of net cash position for the period | - | (736) |
Cash at the beginning of the period | 12,029 | 9,115 |
Cash at the end of period | 12,029 | 8,379 |
Alkemy S.p.A. | |
Via San Gregorio 34, 20124 Milano | Via Guarino Guarini 4, 10123 Torino |
Sede legale, operativa e amministrativa | Lungotevere dei Mellini 44, 00193 Roma |
C.F. e P.I. 05619950966 Reg. delle imprese di Milano | Via Dexart 18, 09126 Cagliari |
Cap. Soc. 595.534,32 euro i.v. | Via Pedro Alvares Cabrai 16, 87036 |
Rende | |
info@alkemy.com | www.alkemy.com |
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***
Alkemy S.p.A. works to improve the market positioning and competitiveness of large and medium-sized companies by stimulating the evolution of their business models in line with technological innovation and consumer behavior. Alkemy integrates skills and expertise in the areas of Consulting, Data & Analytics, Digital Marketing, Brand and Product Design and Technology, with an offering designed for our post-digital environment and covering the entire chain of value, from strategy to implementation.
Contacts
Investor Relations & Sustainabiliy
Emanuela Salvini | emanuela.salvini@alkemy.com| +39 320 1796 890
Close to Media Press Office
Emanuela Mirmina | emanuela.mirmina@closetomedia.it|+39 335 6064823
Enrico Bandini| enrico.bandini@closetomedia.it |+39 335 8484706
Matteo Biffa |matteo.biffa@closetomedia.it| + 39 337 1079749
Alkemy S.p.A. | |
Via San Gregorio 34, 20124 Milano | Via Guarino Guarini 4, 10123 Torino |
Sede legale, operativa e amministrativa | Lungotevere dei Mellini 44, 00193 Roma |
C.F. e P.I. 05619950966 Reg. delle imprese di Milano | Via Dexart 18, 09126 Cagliari |
Cap. Soc. 595.534,32 euro i.v. | Via Pedro Alvares Cabrai 16, 87036 |
Rende | |
info@alkemy.com | www.alkemy.com |
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Alkemy S.p.A. published this content on 15 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 May 2024 16:57:08 UTC.