Sabaf: first semester results and outlook for 2014


As communicated by the company, Sabaf Group reported revenue of €71.3 million in the first half of 2014, an increase of 4.2% versus the figure of €68.4 million in the corresponding period of the previous year. Revenue growth was 5.2% at constant exchange rates. Sales in Italy remained broadly unchanged, while the Group achieved very good results in the rest of Europe, chiefly thanks to larger orders from its leading customers. The Group put in a mixed sales performance outside Europe: excellent results in Africa and in North America were offset by a marked drop in sales in South America and Asia. Average sale prices were down by around 2.5% versus the first half of 2013. The product family that most contributed to the increase in sales was light alloy valves (+15%), for which, with further improvements in productivity, the Group implemented more aggressive sales policies that boosted its market share. The Group also put in a positive sales performance in special burners (+7% versus the first half of 2013), for which it began to supply new models on a large scale, and hinges (+23%). The increase in sales was confirmed by an improvement in profitability. EBITDA came in at €14 million (19.6% of sales, up 4.6% on the same period of 2013, when it was 19.5% of sales) and EBIT was €7.7 million (10.8% of sales, an improvement of 18.1% on the figure of €6.5 million for the first half of 2013).
With regard to the full year 2014, the management of the company believes that the results obtained in terms of improving market share and production efficiency will be confirmed in the second half of the year. However – the company explains – the macroeconomic situation in Europe is still difficult to interpret: the recovery in demand in Italy remains modest, while more positive signs are coming from other European markets. Expectations in the main markets outside Europe in which the Group operates are extremely mixed. In light of these factors, the management confirms its forecast of a slight improvement in sales and profitability on 2013 levels for the full year.