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Financial Instruments - Fair values and risk management (Tables)

12 Months Ended

Dec. 31, 2020

Disclosure Of Financial Instruments [Abstract]

Schedule of Classification and Carrying Amounts of Group's Financial Assets and Financial Liabilities

The following tables show the classification and carrying amounts of Group’s financial assets and financial liabilities as at December 31, 2020 and 2019.

Financial assets	31/12/20		31/12/19
Financial assets measured at amortised cost
Other non-current receivables		3,364		4,519
Trade receivables		33,934		29,187
Other current receivables		9,833		7,723
Cash and cash equivalents		48,187		39,799
Total (a)		95,318		81,228
Financial assets measured at fair value
Forward exchange contracts		112		145
Total (b)		112		145
Total financial assets (a+b)		95,430		81,373

Financial assets measured at amortised cost include trade receivables, other receivables (non-current and current) and cash and cash equivalents. Financial assets at fair value reflect the positive change in fair value of forward exchange contracts that are not designated as hedge relationships, but are, nevertheless, intended to reduce the level of foreign currency risk for future cash flows from accounts receivables and sale orders.

For further details on “Trade receivables”, “Other receivables”, “Cash and cash equivalents” and “Forward exchange contracts” reference should be made to notes 15, 12-16, 17 and 29, respectively.

Financial liabilities	31/12/20		31/12/19
Financial liabilities measured at amortised cost
Long-term borrowings		16,426		18,412
Lease liabilities		53,593		57,367
Bank overdrafts and short-term borrowings		30,812		24,170
Trade payables		74,263		68,476
Other payables		28,269		22,049
Total (a)		203,363		190,474
Financial liabilities measured at fair value
Forward exchange contracts		253		772
Total (b)		253		772
Total financial liabilities (a+b)		203,616		191,246

Summary of Carrying Amount and Fair Value of Financial Assets and Financial Liabilities

The following tables show the carrying amount and fair value of Group’s financial assets and financial liabilities as at December 31, 2020 and 2019, other than those with carrying amount that are reasonable approximation of fair value.

	31/12/20				31/12/19
	Carrying amount		Fair value		Carrying amount		Fair value
Financial assets
Forward exchange contracts		112		112		145		145
Financial liabilities
Floating-rate borrowings		6,915		6,999		9,232		9,322
Fixed rate borrowings		9,511		10,433		9,180		10,256
Total long-term borrowings		16,426		17,432		18,412		19,578
Forward exchange contracts		253		253		772		772

Impairment on Financial Assets Recognised in Profit or Loss

Impairment losses on financial assets recognised in profit or loss for the years ended December 31, 2020, 2019 and 2018 are related mainly to trade receivables and are as follows:

		2020				2019				2018
Impairment loss on trade receivables			1,802				2,389				745

Summary of Insured and Non-insured Trade Receivables

As at December 31, 2020 and 2019, insured and non-insured trade receivables are as follows:

	31/12/20			31/12/19
Insured trade receivables		21,468			10,663
Non-insured trade receivables		20,347			27,223
Gross trade receivables		41,815			37,886
Provision for doubtful accounts		(7,881	)		(8,699	)
Net trade receivables		33,934			29,187

Summary of Trade Receivables Past Due

As at December 31, 2020 and 2019 the ageing of trade receivables is as follows:

	31/12/20			31/12/19
Current (not past due)		28,919			15,179
From 1 to 29 days past due		3,877			8,570
From 30 to 60 days past due		1,105			1,298
From 61 to 90 days past due		347			2,531
More than 90 days past due		7,567			10,308
Gross trade receivables		41,815			37,886
Provision for doubtful accounts		(7,881	)		(8,699	)
Net trade receivables		33,934			29,187

Summary of Information about Credit Risk Exposure on Trade Receivables Using a Provision Matrix

Set out below is the information about the credit risk exposure on the Group’s trade receivables using a provision matrix as at December 31, 2020 and 2019, further to the adoption of IFRS 9.

December 31, 2020

	Days past due
	<30 days			30-60 days			61-90 days			> 90 days			Total
Trade receivables subject to collective valuation		9,480			264			24			239			10,007
Trade receivables subject to specific valuation														31,808
Total gross carrying amount														41,815
Default rate		0.56	%		5.79	%		13.08	%		100.00	%
Expected credit loss		53			15			3			239			310

December 31, 2019

	Days past due
	<30 days			30-60 days			61-90 days			> 90 days			Total
Trade receivables subject to collective valuation		4,936			387			—			309			5,632
Trade receivables subject to specific valuation														32,524
Total gross carrying amount														37,886
Default rate		0.13	%		1.42	%		3.83	%		27.07	%		—
Expected credit loss		6			5			—			84			95

Summary of Maturity Profile of Financial Liabilities Based on Contractual Undiscounted Payments

The tables below summarize the remaining contractual maturities of financial liabilities as at December 31, 2020 and 2019. The amounts are gross and undiscounted, and include contractual interest payments and exclude the impact of netting agreements.

December 31, 2020

	Less than 2 months		2 to 12 months		1 to 2 years		2 to 5 years		More than 5 years		Total
Long-term borrowings		587		7,015		2,642		5,663		2,459		18,366
Lease liabilities		1,844		11,195		11,503		23,958		14,154		62,654
Bank overdrafts and short-term borrowings		30,812		—		—		—		—		30,812
Trade and other payables		28,269		74,263		—		—		—		102,532
Losses on derivative financial instruments		253		—		—		—		—		253
Total financial liabilities		61,765		92,473		14,145		29,621		16,613		214,617

December 31, 2019

	Less than 2 months		2 to 12 months		1 to 2 years		2 to 5 years		More than 5 years		Total
Long-term borrowings		512		4,222		6,568		5,389		3,525		20,216
Lease liabilities		3,341		10,587		9,972		26,568		17,760		68,228
Bank overdrafts and short-term borrowings		24,170		—		—		—		—		24,170
Trade and other payables		22,049		68,476		—		—		—		90,525
Losses on derivative financial instruments		772		—		—		—		—		772
Total financial liabilities		50,844		83,285		16,540		31,957		21,285		203,911

Summary of Sensitivity to Reasonably Possible Change in Interest Rates on that Portion of Loans and Borrowings Affected

The following tables demonstrate the sensitivity to a reasonably possible change in interest rates on that portion of loans and borrowings affected. With all other variables held constant, the Group’s profit before tax is affected through the impact on floating rate borrowings as follows:

	Increase/decrease in basis points	Effect on profit before tax
December 31, 2020	+45		(38	)
December 31, 2020	-45		38
December 31, 2019	+45		(51	)
December 31, 2019	-45		51
December 31, 2018	+45		(71	)
December 31, 2018	-45		71

Summary of Sensitivity to Reasonably Possible Change in Foreign Exchange Rates and Impact on Profit Before Tax

The following tables demonstrate the sensitivity to a reasonably possible change in foreign exchange rates, with all other variables held constant.

	Change in foreign exchange rates	Effect on profit before tax
December 31, 2020	+5%		2,161
December 31, 2020	-5%		(2,447	)
December 31, 2019	+5%		3,155
December 31, 2019	-5%		(3,486	)
December 31, 2018	+5%		2,776
December 31, 2018	-5%		(3,183	)

Summary of Financial Assets and Financial Liabilities Denominated in Foreign Currency

As at December 31, 2020 and 2019 the Group’s financial assets and financial liabilities denominated in foreign currency are as follows:

Financial assets	31/12/20		31/12/19
Trade receivables		26,269		19,807
Cash and cash equivalents		44,611		36,031
Total financial assets		70,880		55,838

Financial liabilities	31/12/20		31/12/19
Long-term borrowings		692		—
Lease liabilities		35,927		38,844
Bank overdraft and short-term borrowings		18,547		253
Trade payables		28,064		26,065
Total financial liabilities		83,230		65,162

Summary of Quantitative Information about Exposure to Currency Risk

As at December 31, 2020 and 2019, the summary quantitative data about Group’s exposure to currency risk as reported to the management of the Group is as follows:

December 31, 2020

	Financial Assets (a)		Financial liabilities (b)		Net Exposure (c) = (a)-(b)
U.S. dollars		26,464		35,295		(8,831	)
Chinese Yuan		21,047		15,999		5,048
British pounds		13,110		16,845		(3,735	)
Brazilian Reais		3,753		2,173		1,580
Canadian dollars		1,693		88		1,605
Romanian Leu		901		7,090		(6,189	)
Mexican pesos		797		1,166		(369	)
Other		3,115		4,574		(1,459	)
Total		70,880		83,230		(12,350	)

December 31, 2019

	Financial Assets (a)		Financial liabilities (b)		Net Exposure (c) = (a)-(b)
Chinese Yuan		20,592		12,071		8,521
U.S. dollars		15,524		26,995		(11,471	)
British pounds		5,984		12,482		(6,498	)
Brazilian Reais		5,975		2,012		3,963
Canadian dollars		3,758		124		3,634
Mexican pesos		984		910		74
Romanian Leu		528		6,673		(6,145	)
Other		2,493		3,895		(1,402	)
Total		55,838		65,162		(9,324	)

Summary of Changes in Liabilities Arising from Financing Activities

The following tables show the changes in financial liabilities arising from financing activities for the three years ended December 31, 2020, 2019 and 2018.

December 31, 2020

	Jan. 1, 2020		Cash flows			Changes in fair value		Other changes			Dec. 31, 2020
Long-term borrowings		18,412		(1,800	)		—		(186	)		16,426
Lease liabilities		57,367		(9,907	)		—		6,133			53,593
Short-term borrowings		22,196		6,518			—		(13	)		28,701
Bank overdrafts		1,974		137			—		—			2,111
Total liabilities from financing activities		99,949		(5,052	)		—		5,934			100,831

December 31, 2019

	Jan. 1, 2019		Cash flows			Changes in fair value		Other changes			Dec. 31, 2019
Long-term borrowings		20,943		(1,365	)		—		(1,166	)		18,412
Lease liabilities		56,758		(11,960	)		—		12,569			57,367
Short-term borrowings		33,386		(11,190	)		—		—			22,196
Bank overdrafts		1,762		212			—		—			1,974
Total liabilities from financing activities		112,849		(24,303	)		—		11,403			99,949

December 31, 2018

	Jan. 1, 2018		Cash flows			Changes in fair value		Dec. 31, 2018
Long-term borrowings		25,717		(4,774	)		—		20,943
Short-term borrowings		25,967		7,419			—		33,386
Bank overdrafts		—		1,762			—		1,762
Total liabilities from financing activities		51,684		4,407			—		56,091