Sabaf: signs of stabilization after a weak 2022

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As communicated by Sabaf Group, after a weak second half of 2022, demand in the household appliances market has been showing signs of stabilisation at volumes higher than they were prior to Covid-19 since the beginning of 2023. Sabaf expects a continuous improvement in the company’s results for the current year, which will benefit from the strategic projects to diversify the product range and internationalise production. Considering the consolidated results for 2022, the Sabaf Group ended the financial year with sales revenue of €253.1 million, down 3.9% (-4.9% on a like-for-like basis) compared to €263.3 million in 2021, year which represented the historical record for the company and for the market. North America is the area which recorded the best performance, with an increase of 30.6% to €39.8 million and where the Group aims to further expand its presence. EBITDA was €40.1 million (15.8% of turnover), down 25.9% from €54.1 million in 2021 (20.6% of turnover), and EBIT was €21.9 million (8.6% of turnover) compared to €37.5 million in 2021. Net profit was €15.7 million (6.2% of sales) compared to €23.9 million in 2021. In 2022, in line with the Business Plan, the Group invested €20.9 million: an integrated production line of hinges for dishwashers was started in Turkey; the production of gas components (valves and burners) was started in India; and in Mexico the works on the construction of the plant in San Luis de Potosi continued. Besides, last October Sabaf S.p.A. completed the acquisition of 100% of P.G.A. S.r.l. As regards to this year, the first weeks of 2023 show an improving trend in sales and orders. “The destocking that characterised the second half of 2022 now is over, although sales in the first half of the year will remain lower than the record levels of early 2022 – the company explains –. The Group expects a recovery of profitability made possible by the recovery of production volumes, lower energy and raw material prices, and actions taken to contain energy consumption. Initiatives for product diversification and internationalisation are advancing according to the plans. These will contribute to improving economic performance and ensuring the sustainable growth of the Group in the medium and long term. Specifically: efforts were further intensified in the development of induction cooking components (the first deliveries are forthcoming); the technical and commercial integration of P.G.A. continues with the aim of strengthening its presence in the smart appliances and IoT sector for household appliances; the ramp-up of the production of gas components in India continues; construction of the plant in Mexico is nearing completion, where the production of burners, highly anticipated by the North American market, will begin; works for the production of a 2 MW photovoltaic plant are about to start at the Ospitaletto factory which will be able to cover a significant portion of the facility’s energy needs”.