As announced by Sabaf, the Group reported revenue of €72.5 million in the first half of 2015, an increase of 1.7% versus the figure of €71.3 million in the corresponding period of the previous year. At constant exchange rates, revenue was more or less unchanged. Sales were down in Italy and Western Europe, but there was growth of more than 10% in Eastern Europe. Sales outside Europe enjoyed rapid growth (+35.3%) in North America and were also solid in Asia and South America (despite a difficult Brazilian market), but they fell in the Middle East and North Africa, owing entirely to a modest contribution from the Middle East markets. Average sale prices were down by 0.7% versus the first half of 2014. Analysis by product family shows a strong increase in sales of standard (+4.9%) and special (+4%) burners, and continued growth in the sales of light-alloy valves (+6.4%), some of which are replacements for brass valves. There was, however, a decrease in thermostat sales owing to a downturn in the Middle East market.
In the first half of 2015, the Group once again managed to increase its profits by more than its revenues. EBITDA came in at €14.4 million (19.8% of sales and up 2.9% on the same period of 2014, when they were 19.6% of sales) and EBIT was €8.4 million (11.6% of sales and an improvement of 8.9% on the figure of €7.7 million for the first half of 2014). The drop in sale prices was more than offset by a positive sales mix and by further improvement in production efficiency. Pre-tax profit amounted to €8.2 million in H1 2015 (€7.2 million in H1 2014), and net profit was €5.5 million (€4.5 million in H1 2014, an increase of 22.1%).
As regards to the investments, they totalled €7.9 million in H1 2015 (€5.2 million in the same period of 2014). “The largest investments went on increasing the production capacity of light-alloy valves with a flame failure device – the company explains in a official note -, for which there are expected to be sales growth opportunities in the near future. Investment also continued with a view to beginning production of burners in China in the third quarter”.
Finally, according to the company, sales and orders for July and August point to a positive trend, with double-digit growth on the same period in 2014. In light of the lack of visibility for the next few months, Sabaf cautiously confirms its forecast of moderate growth in sales and profitability for the whole of 2015, considering a macroeconomic scenario not affected by unpredictable events.
