(Alliance News) - Aquafil Spa reported Friday that it closed the first half of the year with revenues of EUR144.3 million, down 11 percent year-on-year.

As the company explained, the change was attributable to both a reduction in quantities sold, which were 11 percent and 12 percent lower than in the same periods of the previous year, and a reduction in sales prices due to their alignment with lower prices of raw materials and other cost factors, mainly energy and transportation.

As of June 30, 2023, the group's Net Financial Position was EUR250.7 million compared to EUR247.9 million as of December 31, 2022.

Giulio Bonazzi, the company's chief executive officer, said, "Even in our sector, the European reference context in the second quarter proved more difficult than expected. The market has seen a sudden and marked reduction in demand, generated by the combination of the slowdown in end consumption and the process of inventory reduction by customers. The general weak market situation also caused a sharp decrease in raw materials, which returned to mid-2021 levels. Our selling prices, having to follow the trend of the raw material, led to a temporary worsening of margins caused by the high unit carrying value of inventories formed during 2022."

"Demand and quantities sold in the U.S. and Asia Pacific confirmed last year's satisfactory numbers. In the first half of the year, there was good progress in the engineering plastics project, which despite a still very weak market is approaching the set targets that will definitely be achieved within the fiscal year. In the summer, we are seeing an improvement in demand from the BCF sector in EMEA, where the inventory reduction should have largely ended. Finally, major debt containment initiatives, which began during 2022, continue, thanks to actions to rationalize working capital and the nearly completed investment cycle that began in past fiscal years."

Aquafil's stock closed Friday up 4.4 percent at EUR3.70 per share.

By Giuseppe Fabio Ciccomascolo, Alliance News senior reporter

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