Sabaf revenue: +19.1% in the first half of 2017

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The Sabaf Group reported revenue of 77.2 million euro in the first half of 2017, an increase of 19.1% versus the figure of 64.9 million in the corresponding period of the previous year. Taking into consideration the same scope of consolidation, the increase of sales was 15.4%. All of the markets contributed to the growth, except for Italy, which remains stable. “Very positive sales growth rates have been recorded in other European markets, where Sabaf is consolidating its leadership – explains the company -. The Middle East market shows a strong recovery compared with 2016, and North and South America maintain a positive trend, already evident in several quarters. The product category analysis shows a growth rate of 40% for special burners, the family where product innovation has been the strongest in recent years. Average sale prices were down by 0.7% versus the first half of 2016”. “The increase in sales volumes, together with the constant improvement in efficiency of production, determined a consistent improvement of profitability – added the company -: the EBITDA of the first six months of the year came in at 16.8 million euro (21.7% of sales and up 35.7% on the same period of 2016, when it was 19.1% of sales) and EBIT was 10.3 million euro (13.4% of sales, up by 70.8% on the figure of 6 million for the first half of 2016). Pre-tax profit amounted to 10.3 million euro in H1 2017 (5.9 million in H1 2016), and net profit was 7.5 million (3.9 million in H1 2016, up by 89.4%)”.
Investments in the first half of 2017 were 7 million euro (in line with H1 2016); the largest investments were aimed at the automation of the assembly lines for light alloy valves and automation of the diecasting machines in Turkey. Significant upgrades are also in progress at the Ospitaletto plant for the interconnection of production plants with the ERP systems and for product traceability. As regards to the forecasts for the rest of the year, the company said that the performance of sales and orders remains positive also for the months of July and August. “Although the visibility for H2 is not yet complete – explained the company – for the whole of 2017, the Group expects to be able to reach sales of around 150 million euro and increasing operating margins compared with 2016 (the previous forecast indicated sales of around 145 million). These forecasts assume a macroeconomic scenario not affected by unpredictable events”. Starting from September 12th the company will be led by Pietro Iotti as Chief Executive Officer and General Manager.