VAA Vista Alegre Atlantis SGPS : 1st Quarter Report 2023

INTERIM FINANCIAL REPORTING
1ST QUARTER OF 2023 (IFRS)	(UNAUDITED)

Interim Financial Report (January to March 2023)

31st of March 2023

	TABLE OF CONTENTS
INTERIM FINANCIAL REPORTING	3
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION	6
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS	11
1.	SEASONALITY OF OPERATIONS	11
2.	CONVERSION OF FINANCIAL STATEMENTS OF FOREIGN COMPANIES	11
3.	SEGMENT REPORTING	11
4.	FINANCIAL INSTRUMENTS BY CLASS	16
5.	TANGIBLE FIXED ASSETS	17
6.	INTANGIBLE ASSETS	18
7.	INVESTMENT PROPERTIES	18
8.	FINANCIAL INVESTMENTS	19
9.	USE RIGHTS ASSETS AND LEASE LIABILITIES	20
10.	INCOME TAX	22
11.	INVENTORIES	23
12.	ACCOUNTS RECEIVABLE AND OTHERS	23
13.	SHARE CAPITAL, TREASURY SHARES, ISSUE PREMIUMS AND OTHER EQUITY	24
14.	RESERVES AND RETAINED EARNINGS	24
15.	LOANS OBTAINED	25
16.	ACCOUNTS PAYABLE AND OTHER DEBTS	26
17.	PROVISIONS	27
18.	STATE AND OTHER PUBLIC ENTITIES	28
19.	SUBSIDIES	28
20.	REVENUE	28
21.	STAFF COSTS	29
22.	EXTERNAL SUPPLIES AND SERVICES	29
23.	OTHER OPERATING INCOME AND EXPENSES	30
24.	FINANCIAL RESULT	30
25.	COMMITMENTS	31
26.	BALANCES AND TRANSACTIONS WITH RELATED PARTIES	31
27.	SUBSEQUENT EVENTS	33
28.	COMPANIES INCLUDED IN THE CONSOLIDATION	33

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Interim Financial Report (January to March 2023)

31st of March 2023

Interim Financial Reporting

VAA - Vista Alegre Atlantis SGPS, S.A., hereby presents its accounts for the period from January to March 2023, pursuant to regulation no 5/2008, in accordance with IAS 34.

These interim financial statements were prepared based on the same accounting policies and calculation methods used in the preparation of the last annual financial statements (2022 financial year).

In this interim financial report, we only release notes which allow us to understand the changes in the financial position and performance of the company since the last annual report.

1. Activity Evolution

The first quarter of 2023 was again marked by the inflationary pressure which continues to be felt in the global economy, resulting from the still ongoing geopolitical crisis of the invasion of Ukraine. However, despite this adverse environment, Vista Alegre has demonstrated strong resilience, based on the continued growth of its brands' awareness at a global level, which can be seen by the increase in sales via physical and online retail channels of Vista Alegre and Bordallo Pinheiro products at both national and international levels.

Additionally, the Horeca channel saw an increase of 43% in 2023 compared to 2022 and was one of

the biggest contributors to the growth of the brand's sales.

Vista Alegre thus achieved a consolidated turnover in the 1st quarter of 2023 of 31.1 million euros

and an EBITDA of 6.2 million euros.

The porcelain segment was the main driver of sales growth, with sales reaching 11.4 million euros, representing an increase of 11.1% compared to the previous year.

		T €
Segments	Jan to Mar 2023	Jan to Mar 2022	Variation (%)
	Total	Total	Total
Porcelain and related products	11,389	10,256	11.1%
Earthenware	3,593	3,314	8.4%
Stoneware Oven	12,735	13,402	-5.0%
Crystal and Glass	3,398	3,288	3.3%
Total	31,115	30,260	2.8%

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Interim Financial Report (January to March 2023)

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The stoneware segment saw a 5% reduction in its sales volume, as a result of the company's strategy of reducing the number of private label projects, particularly in the oven stoneware segment.

On the other hand, the tableware segment, both in terms of the Casa Alegre brand and products for IKEA customers, recorded a significant growth in sales compared to the same period last year.

The international markets of Brazil and the United States of America, and the markets of the Netherlands, France, Spain and Germany in Europe, were the main contributors to sales in the foreign market, representing 74.8% of the turnover of Vista Alegre, with 23.3 million euros in sales.

2. Results

The consolidated results for 1Q23 of Grupo Vista Alegre reflect excellent performance compared to the same period in 2022, with turnover increasing 2.8% to 31.1 million euros, and EBITDA of approximately 6.2 million euros, a growth of 49.7% y/y.

It should be noted that the inflationary pressure felt globally has a direct impact on production costs, namely the cost of energy, logistics, raw materials and personnel, repressing the company's results. However, the efficient management of our operations and the favorable evolution in terms of sales portfolio of branded porcelain and crustal products from Vista Alegre and artistic earthenware from Bordallo Pinheiro, allowed for an improvement in results compared to the same period last year.

				M€
Headings	3M 2023	3M 2022	Var. 3M
Amount	%
Turnover	31.1	30.3	0.9	2.8%
E B I T D A	6.2	4.2	2.1	49.7%
EBITDA Margin	20.0%	13.8%		6.3 pp
Operating Income	3.1	0.9	2.2	234.0%
Operating Margin	10.0%	3.1%		6.9 pp
Income before taxes	2.0	-0.3	2.3	812%
Income tax	-0.5	0.0
Net income	1.5	-0.3	1.7	649%

The Group recorded an operating income of 3.1 million euros and the net income for the financial year grew by 1.7 million euros, compared to the same period of 2022, reaching 1.5 million euros, compared to a negative result of 268 thousand euros in March 2022.

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Interim Financial Report (January to March 2023)

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3. Investments

Investment during the first quarter was 2.6 million euros, mostly relating to the Cerexport production plant and included the overhaul of an oven for greater energy efficiency and improved flexibility of production lines, so as to respond to more efficiently to the market fluctuations demand.

Ílhavo, 31st of May 2023

The Board of Directors

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