Piovan (PVN) Q2 2024 earnings summary

Executive summary

• Revenues for H1 2024 reached €287.5m, down 0.9% year-over-year, with organic revenues excluding NuVu down 3.7% YoY.

• Adjusted EBITDA rose 3.0% to €38.8m (13.5% margin); adjusted net income up 10.6% to €30.6m; net profit was €28.2m, up 29.3% YoY, aided by a €6.4m gain from NuVu revaluation.

• Net financial position improved to negative €56.9m from negative €102.6m a year ago, despite €13.8m in dividends and €5.5m in investments.

• Growth in food and services segments offset declines in technical polymers, which saw a 4.3% YoY drop.

• Sale of controlling interest (58.35%) to Investindustrial agreed in July 2024, with delisting planned post-closing.

Financial highlights

• Adjusted EBITDA margin rose to 13.5% from 13.0% in H1 2023; EBIT margin at 10.7%.

• Net income attributable to shareholders increased to €27.6m from €22.6m year-over-year.

• Cash conversion index: 95.0% for the last twelve months.

• Net working capital: €52.3m, up from €41.2m at year-end 2023.

• Dividend payout of €13.8m in May 2024.

Outlook and guidance

• Further acceleration in food and industrial applications expected in H2 2024.

• Order intake rebounded in Q2 2024 after a slow Q1; backlog stable and above historical averages.

• New regulations in Europe, India, and China on recycled plastics expected to support future growth, especially in Asia.

• Integration of IPEG and NuVu expected to yield further commercial and cost synergies.

• Management anticipates continued growth in services and benefits from recent acquisitions.