PRESS RELEASE
B&C Speakers S.p.A.:
Board of Directors approves Interim Management Report as at June 30, 2023
B&C Speakers S.p.A. confirms trend of clear growth in revenues, margins and profits again in the
first six months of 2023
- Consolidated revenue of EUR 48.54 million (up 29.8% compared to EUR 37.39 million in the first six months of 2022);
- Consolidated EBITDA of EUR 12.06 million (up 45.3% compared to EUR 8.30 million in the first six months of 2022);
- Group Comprehensive Income of EUR 8.14 million (also significantly up from the value of EUR 4.63 million in the first six months of 2022);
- Group net financial position of EUR 7.8 million (equal to EUR 9.4 million at the end of 2022);
Bagno a Ripoli (Fi), September 12, 2023 - The Board of Directors of B&C Speakers S.p.A., one of the leading international players in the field of design, production, distribution and marketing of electroacoustic transducers for professional use - listed on the Euronext STAR Milan segment of the Italian Stock Exchange - approved the Group's Interim Report for the first six months of 2023 prepared in accordance with IFRS.
Revenues
In the first half of 2023, the Group's reference market confirmed its great dynamism in continuation of the best performance of 2022. The consolidated turnover thus reached a record value of Euro
48.5 million, an increase of 29.8% compared to the value for the first half of 2022 when it stood at Euro 37.39 million.
In particular, the achieved turnover level is due to both a significant volume growth (+12% compared to the same period in 2022) and the achievement of a better sales mix.
The group achieved revenue growth in almost all its reference markets, largely driven by European and Asian customers, although the excellent performance of the South American market should not be forgotten, which has finally become dynamic again after the pandemic crisis. Below is the complete breakdown by geographical area for the first six months of 2023 compared to the same period of 2022 (all values are in Euro):
Geographical Area | 1st half 2023 | % | 1st half 2023 | % | Change | Change % |
Latin America | 3,946,663 | 8.1% | 1,967,116 | 5.3% | 1,979,547 | 101% |
Europe | 23,128,674 | 47.6% | 16,613,429 | 44.4% | 6,515,245 | 39% |
Italy | 3,513,022 | 7.2% | 2,243,381 | 6.0% | 1,269,641 | 57% |
North America | 8,913,217 | 18.4% | 9,039,968 | 24.2% | (126,751) | -1% |
Middle East & Africa | 836,642 | 1.7% | 1,901,412 | 5.1% | (1,064,770) | -56% |
Asia & Pacific | 8,203,644 | 16.9% | 5,624,204 | 15.0% | 2,579,440 | 46% |
Total | 48,541,862 | 100.0% | 37,389,509 | 100.0% | 11,152,352 | 29.83% |
Cost of sales
During the first six months of 2023, cost of sales showed an improvement in its incidence on revenues compared to the same period of 2022, from 65.7% to 62.7%. This improvement was due to a return of transport costs to pre-pandemic levels and, although to a lesser extent, to an increase in the efficiency of direct personnel costs despite its increase in absolute value (+ 21% compared to H1 2022), determined by the need to support increased production volumes.
Indirect personnel
The cost for indirect personnel decreased as a percentage of revenues from 5.8% to 5.1% in the first half of 2022. In absolute terms, the figure for the first half of 2023 was slightly greater in value, following the hiring of some resources at the technical and production structure.
Commercial expenses
Commercial expenses remained essentially unchanged compared to the first half of 2022.
General and administrative
General and administrative expenses rose compared to the corresponding figure for 2022, increasing their incidence from 5.4% to 6.6%. The rise in general and administrative expenses was mainly due to the increment in external consultancy costs, amounting to €524,000, related to the company acquisition described in the section on events occurred after 30 June 2023 of this press release, and partly to the increase in energy costs.
EBITDA and EBITDA Margin
As a consequence of the dynamics described above, EBITDA for the first six months of 2023 amounted to Euro 12.1 million, showing an increase of Euro 3.76 million (+45.3%) compared to the same period in 2022.
An improvement is also observed in terms of EBITDA margin, with the figure reaching 24.9% of revenue (22.2% in the first six months of the previous year).
As recently announced, on 8th September, B&C Speakers took over Eminence Speakers (a historic professional audio brand with production sites in the US and China). BC incurred a large part of the preparatory expenses for the settlement of this transaction during the first half of 2023. The effect of these non-recurring costs, amounting to about EUR 524 thousands, caused the EBITDA margin to decrease by about 1 percentage point. EBITDA and EBITDA margin gross and net of this effect are shown in the table below:
(€ thousands) | 1 half 2023 | Incidence | 1 half 2022 | Incidence |
Ebitda | 12,059 | 24.84% | 8,298 | 22.19% |
Costs for business aggregation | 524 | 1.08% | - | 0.00% |
Ebitda adjusted | 12,583 | 25.92% | 8,298 | 22.19% |
Amortisation and depreciation
Amortisation and depreciation of tangible and intangible assets and utilisation rights were substantially in line with the first half of the previous year and amounted to €1,035 thousand (€996 thousand in the corresponding period of 2022).
EBIT and EBIT Margin
EBIT for the first six months of 2023 amounted to Euro 11.02 million, an increase of 52.2% compared to the same period of 2022 (Euro 7.24 million). The EBIT margin is 22.7% of revenue (19.4% in the same period of 2022).
Group Net Profit
The Group Net Profit, at the end of the first six months of 2023, amounted to Euro 8.11 million and represented 16.7% of consolidated revenue, with an overall increase of 85.1% compared to the corresponding period of 2022.
The overall Net Financial Position was negative and amounted to Euro 7.8 million, compared to a value of Euro 9.4 million at year-end 2022. The excellent generation of operating cash flow for the period (core business generated cash of EUR 9.1 million in the first half of 2023) had a positive impact on the Net Financial Position. This allowed the payment of a dividend of Euro 6.5 million and the fulfilment of the maturities of existing loans, without negatively affecting the total net financial debt.
(values in Euro thousands) | 30 June | 31 December | |
2023 (a) | 2022 (a) | Change % | |
A. Cash | 6,987 | 5,825 | 20% |
C. Other current financial assets | 8,671 | 8,574 | 1% |
D. Cash and cash equivalent (A+C) | 15,658 | 14,399 | 9% |
E. Bank overdrafts | (4,988) | (476) | - |
F. Current portion of non current borrowings | (9,360) | (11,519) | -19% |
G. Current borrowingse (E+F) | (14,349) | (11,995) | 20% |
H. Current net financial indebtness (G+D) | 1,309 | 2,404 | -46% |
I. Non current financial indebtness | (9,171) | (11,818) | -22% |
L. Non current financial indebtness | (9,171) | (11,818) | -22% |
M. Total financial indebteness (H+L) | (7,862) | (9,414) | -16% |
Below is the reclassified Group Income Statement for the first six months of 2023 compared to the corresponding period of 2022:
Economic trends - Group B&C Speakers | ||||
(€ thousands) | 1 half 2023 | Incidence | 1 half 2022 | Incidence |
Revenues | 48,542 | 100.00% | 37,390 | 100.0% |
Cost of sales | (30,468) | -62.77% | (24,560) | -65.7% |
Gross margin | 18,073 | 37.23% | 12,829 | 34.3% |
Other revenues | 170 | 0.35% | 126 | 0.3% |
Cost of indirect labour | (2,490) | -5.13% | (2,161) | -5.8% |
Commercial expenses | (479) | -0.99% | (452) | -1.2% |
General and administrative expenses | (3,216) | -6.62% | (2,044) | -5.5% |
Ebitda | 12,059 | 24.84% | 8,298 | 22.2% |
Depreciation and Amortization | (1,035) | -2.13% | (996) | -2.7% |
Writedowns | 0 | 0.00% | (58) | -0.2% |
Earning before interest and taxes (Ebit) | 11,024 | 22.71% | 7,243 | 19.4% |
Writedown of investments in non controlled associates | 0 | 0.00% | - | 0.0% |
Financial costs | (981) | -2.02% | (2,072) | -5.5% |
Financial income | 785 | 1.62% | 800 | 2.1% |
Earning before taxes (Ebt) | 10,828 | 22.31% | 5,972 | 16.0% |
Income taxes | (2,715) | -5.59% | (1,590) | -4.3% |
Profit for the year | 8,113 | 16.71% | 4,382 | 11.7% |
Minority interest | 0 | 0.00% | 0 | 0.0% |
Group Net Result | 8,113 | 16.71% | 4,382 | 11.7% |
Other comprehensive result | 26 | 0.05% | 250 | 0.7% |
Total Comprehensive result | 8,138 | 16.77% | 4,632 | 12.4% |
Events after June 30, 2023
There are currently no events occurring after 30 June 2023 that require additional notes to this half- yearly report.
As already announced to the market in a press release of 8 September 2023, the Parent Company B&C Speakers S.p.A acquired 100% of the share capital of Eminence Speaker LLC (a company incorporated under US law) from Eminence Holdings LLC and, simultaneously, committed itself to purchase from Eminence Dongguan Enterprise Co. Ltd, (also owned by of Eminence Holdings LLC), a significant portion of its assets through a NewCo (whose establishment is an essential condition for the accomplishment of the agreement) entirely owned by B&C.
The two transactions described above represent a significant step forward in the internationalisation strategy of B&C Speakers. The Group will now benefit from two additional production facilities (one in the USA and one in China) where Eminence brand products are manufactured. Eminence is an historic brand in professional audio and very strong in sectors where the B&C Group's presence is historically smaller.
Business outlook
The mood of the reference market is very positive towards the current year and confirms that the year can close on better production and sales levels than in 2022. The Group's management, given the return to normality of logistics costs and the current stability of input costs, believes that the conditions are in place to work on progressively improving production and structural efficiency. The acquisition of Eminence Speaker will guarantee greater visibility to the entire Group and, reasonably, we believe we will be able to observe the first positive effects as early as the current financial year.
The Consolidated Balance Sheet and Consolidated Income Statement as at June 30, 2023 are shown below
CONSOLIDATED STATEMENT OF FINANCIAL POSITION | 30 June | 31 December |
(Values in Euro) | 2023 | 2022 |
ASSETS | ||
Fixed assets | ||
Tangible assets | 2,637,336 | 2,513,000 |
Right of use | 4,383,862 | 4,657,737 |
Goodwill | 2,318,181 | 2,318,181 |
Other intangible assets | 401,778 | 400,956 |
Investments in non controlled associates | - | - |
Deferred tax assets | 897,507 | 756,478 |
Other non current assets | 541,717 | 536,368 |
related parties | 6,700 | 6,700 |
Total non current assets | 11,180,381 | 11,182,720 |
Currents assets | ||
Inventory | 28,470,118 | 26,420,332 |
Trade receivables | 22,270,079 | 21,592,254 |
Tax assets | 0 | 19,831 |
Other current assets | 12,730,017 | 14,968,330 |
Cash and cash equivalents | 6,987,479 | 5,825,350 |
Total current assets | 70,457,693 | 68,826,097 |
Total assets | 81,638,074 | 80,008,817 |
LIABILITIES | ||
Equity | ||
Share capital | 1,083,624 | 1,083,955 |
Other reserves | 3,966,055 | 3,490,104 |
Foreign exchange reserve | 467,143 | 442,276 |
Retained earnings | 32,768,627 | 31,676,850 |
Total equity attributable to shareholders of the parent | 38,285,449 | 36,693,185 |
Minority interest | - | - |
Total equity | 38,285,449 | 36,693,185 |
Non current liabilities | ||
Long-term borrowings | 5,849,447 | 8,183,309 |
Long-term lease liabilities | 3,321,945 | 3,634,895 |
related parties | 2,766,341 | 3,086,130 |
Severance Indemnities | 789,317 | 772,315 |
Provisions for risk and charges | 41,487 | 41,487 |
Total non current liabilities | 10,002,196 | 12,632,006 |
Current liabilities | ||
Short-term borrowings | 13,127,520 | 10,819,475 |
Short-term lease liabilities | 1,221,286 | 1,174,874 |
related parties | 924,519 | 885,605 |
Trade liabilities | 11,908,717 | 13,487,204 |
related parties | 85,312 | 83,175 |
Tax liabilities | 4,114,645 | 2,445,913 |
Other current liabilities | 2,978,262 | 2,756,160 |
Total current liabilities | 33,350,430 | 30,683,626 |
Total Liabilities | 81,638,075 | 80,008,817 |
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B&C Speakers S.p.A. published this content on 12 September 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 September 2023 14:05:05 UTC.