(Alliance News) - Aquafil Spa reported Thursday that it closed the first nine months with a loss, with a net loss of EUR17.1 million, which compares with a profit of EUR26.1 million in the same period last year.

Revenues dropped to EUR442.2 million from EUR529.9 million. The change can be attributed both to the reduction in quantities sold, which was 8.8 percent lower year-on-year, and to lower selling prices due to their alignment with lower costs of raw materials and other inputs, mainly energy and transportation.

Ebitda decreased to EUR37 million from EUR73.2 million. The reduction shown is attributable to the stock effect - high unit cost of raw materials in stock created during 2022 by about EUR20.0 million - as well as lower quantities sold.

Operating income was negative EUR4.4 million, of which EUR8.5 million of liabilities related to the third quarter alone.

As of September 30, the group's Net Financial Position was EUR262.8 million compared to EUR247.9 million as of December 31, 2022. The change recorded was mainly due to positive cash generation from operating activities of EUR31.2 million, decrease in working capital of EUR22.5 million, change in other assets and liabilities of EUR5.1 million, net investments of EUR25.7 million, from the payment of financial expenses of EUR10.4 million, payment of taxes and use of funds of EUR8.9 million, non-cash change related to the application of IFRS 16 accounting standard of EUR5.1 million, payment of dividends of EUR12.0 million as well as the purchase of treasury shares of EUR600.000.

As of September 30, the ratio of NFP to LTM EBITDA stood at 4.7 times compared to 2.7 times as of December 31, 2022.

In view of the transient decline in the margin level, the group has started the process of requesting the lending institutions to temporarily suspend the verification of covenants.

Aquafil's stock is down 2.6 percent at EUR2.46 per share.

By Giuseppe Fabio Ciccomascolo, Alliance News senior reporter

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