(Alliance News) - Masi Agricola Spa reported Friday that it closed the first half of the year with revenues of EUR33.1 million, down from EUR36.9 million in the same period last year.

The first half of last year had benefited from the post-pandemic recovery while, in general, the rising cost of money and an increased focus on spending by consumers is leading the network-customers to reduce stock coverages.

Considering the incomparability of the Covid period - 2020 and 2021 - and the exceptional nature of the 2022 fiscal year, a comparison of sales in the first half of 2019, at EUR29.7 million, with the figure recorded in the quarter ended June 30, 2023 evidences a growth of 11 percent, partly due to increases in the sales price lists practiced in the meantime. This is the second best performance since listing on the EGM to date with reference to revenues in the first six months.

Ebitda fell to EUR5.5 million from EUR8.4 million while operating income decreased to EUR3.4 million from EUR6.2 million.

Net income fell to EUR1.8 million from EUR4.1 million.

Consolidated net financial debt as of June 30, 2023 amounted to EUR21.4 million compared to EUR7.7 million as of December 31, 2022 and EUR4.0 million as of June 30, 2022. The increase in consolidated net financial debt is mainly attributable to an increase in closing inventories to EUR65.2 million from EUR54.1 million, mainly due to an exceptional supply of aging Amarone made during the period.

"Unfortunately, we see a variety of contextual elements that make forecasting extremely difficult: the war conflict between Russia and Ukraine continues, with its related impacts on the financial markets and various categories of commodities, including foodstuffs; very significant inflationary and interest rate increases continue, unprecedented in the last two decades, which - as far as we can see - are generating a significant negative impact on households' spending capacity and their consequent attitude to consumption, especially in the premium segment in which the company operates. Even in July, we recorded lower orders than in the previous year. We keep industry trends monitored, which are moreover substantially in tune with those of the company, and we continue to dialogue with market players to maintain management responsiveness," the company explained.

Masi Agricola's stock is down 2.0 percent at EUR4.51 per share.

By Giuseppe Fabio Ciccomascolo, Alliance News senior reporter

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