Piovan (PVN) Q4 2023 earnings summary

Executive summary

• Record 2023 performance: total revenue and other income €570.5m, up 7.4% YoY; EBITDA margin expanded to 13.7% from 11.6%.

• Results exceeded expectations despite market and geopolitical uncertainty; ongoing priorities include circular-economy solutions, innovation, and global market leadership.

Financial highlights

• Revenue was €559.1m, up 7.6% YoY; on a pro forma basis including IPEG for all of 2022, revenue growth was 4.8%.

• EBITDA rose 27.3% to €78.4m; Adjusted EBITDA was €78.9m, up 25.8%, with a 13.8% margin. Comparable growth rates including IPEG for all of 2022 were 25.0% and 23.6%, respectively.

• Operating profit was €64.7m, up 44.7%; net profit was €48.9m, up 40.4%; basic and diluted EPS were €0.97 and €0.96.

• Operating cash flow reached €55.5m; total investments were €9.7m, and cash and cash equivalents ended the year at €92.8m.

Outlook and guidance

• 2024 priorities include growing circular-economy offerings, acquisitions, IPEG integration and synergies, and increasing Food & Industrial Applications market share.

• Year-end backlog declined YoY but was relatively stable vs. September 30 and remained above historical averages; order intake showed persistent uncertainty into early 2024.

• European rules encouraging reuse, recycled plastics and compostable polymers are viewed as opportunities; ~32.4% of automations sold in packaging, fiber and recycling were used with recycled materials.