Reggio Emilia, 06 September 2023 - The Board of Directors of Cellularline S.p.A. (hereinafter "Cellularline" or the "Company"), a European leader in the sector of accessories for smartphones and tablets listed on the STAR Milan Euronext Market organised and managed by Borsa Italiana S.p.A., today examined and approved the Consolidated Interim Financial Report as at 30 June 2023.
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The half-year financial report at 30 June 2023 will be filed, by the terms set forth in art. 154-ter, paragraph 2, of the of the Consolidated Law on Finance, at the Company's registered office and at Borsa Italiana S.p.A.; it will also be available on the Company's website at the following address www.cellularlinegroup.com as well as on the storage authorised storage mechanism by Computershare S.p.A. at .
Marco Cagnetta, Director and General Manager Sales and Marketing of the Cellularline Group, commented: "The Group's growth continued in the second quarter of 2023. The first half of the year saw strong growth in revenues across all product lines. We are particularly satisfied with the performance of the Red line, which is the Group's core business.
Noteworthy is the growth in Germany, whose expansion is mainly or primarily driven by the recent distribution agreement and the acquisition finalized at the start of the year. In this geographic context, which is particularly strategic for us, the Group shows an overall growth of more than 100% over the first six months
1 Adjusted EBITDA is calculated as EBITDA adjusted for i) non-recurring charges/(income), ii) the effects of non-recurring events, iii), events relating to extraordinary transactions and iv) operating foreign exchange gains/(losses).
2 Adjusted Net Profit is calculated as adjusted Result of the period of the i) adjustments in Adjusted EBITDA, ii) adjustments of depreciation relating to the Purchase Price Allocation, iii) adjustments of non-recurring financial expense/(income) and iv) the theoretical tax impact of these adjustments.
of 2022. We also note the continued growth of the subsidiary Worldconnect, due to the return of airport traffic to particularly significant volumes.
We remain focused on pursuing the Group's international growth strategy and carefully managing operating costs, to further expand the business, seizing new growth opportunities, and at the same time increasing profitability."
In the first half of 2023, the Group's Revenue from sales totalled EUR 67.8 million, or 24.3% more than in the same period of last year (EUR 54.6 million) thanks to the increase in sales both on the domestic and international markets. In particular, the latter is benefiting from the momentum given by the recent distribution agreement signed with reference to the DACH region, the increase in sales by Worldconnect, and finally the inclusion of the newly acquired companies.
It should be noted that Peter Jäckel GmbH (acquired in January 2023) and Subliros SL (controlled as of the last quarter of 2022) contributed EUR 2.5 million and EUR 0.14 million, respectively, in the period under review; therefore, the like-for-like revenue development (i.e., the comparison of sales with last period on a like-for-like basis) was +19.4%.
| (In millions of Euro) | Half year ending on: | |||||
|---|---|---|---|---|---|---|
| 30 June 2023 | % of revenue |
30 June 2022 |
% of revenue |
Δ | % | |
| Red – Italy | 19.5 | 28.7% | 18.0 | 33.0% | 1.4 | 8.0% |
| Red – International | 34.7 | 51.2% | 25.1 | 46.0% | 9.6 | 38.4% |
| Revenue from sales - Red | 54.2 | 79.9% | 43.1 | 79.0% | 11.0 | 25.7% |
| Black – Italy | 2.2 | 3.3% | 2.2 | 4.1% | (0.0) | -0.8% |
| Black – International | 2.1 | 3.1% | 1.9 | 3.5% | 0.2 | 12.6% |
| Revenue from sales - Black | 4.3 | 6.4% | 4.1 | 7.6% | 0.2 | 5.4% |
| Blue – Italy | 8.5 | 12.5% | 5.5 | 10.0% | 3.0 | 54.8% |
| Blue – International | 0.8 | 1.2% | 1.8 | 3.4% | (1.6) | -55,4% |
| Revenue from sales - Blue | 9.3 | 13.7% | 7.3 | 13.4% | 2.0 | 27.0% |
| Total revenue from sales | 67.8 | 100.0% | 54.6 | 100.0% | 13.2 | 24.3% |
The table below shows sales by product line:
The analysis of sales for the individual product lines shows that:
• the Blue Line recorded growth of EUR 2.0 million (+27.0%), mainly due to increased demand for products of third parties brands distributed in Italy.
The table below shows sales by geographical area:
| (In millions of Euro) | Half year ending on: | Change | ||||
|---|---|---|---|---|---|---|
| 30 June 2023 |
% of revenue |
30 June 2022 |
% of revenue |
Δ | % | |
| Italy | 30.2 | 44.5% | 25.7 | 47.2% | 4.4 | 17.2% |
| Main European markets3 | 23,1 | 34.1% | 15.6 | 28.6% | 7.5 | 48.1% |
| Other countries | 14.5 | 21.4% | 13.3 | 24.2% | 1.3 | 10.0% |
| Total revenue from sales | 67.8 | 100.0% | 54.6 | 100.0% | 13.2 | 24.3% |
With regard to the analysis of sales by geographic area, it should be noted that the sales recorded in foreign markets accounted for over 55.5% of the Group's total sales, with an increase in the incidence of 3 p.p. (compared to the figure of H1 2022).
Turning to an analysis of costs in the first half of 2023:
The operating result was EUR -2.7 million (EUR -44.8 million as of 30 June 2022, or EUR -4.9 million net of goodwill impairment).
Adjusted EBITDA, an indicator considered by management to represent the Group's operating profitability trend, amounted to EUR 4.6 million in the period under review, an increase of EUR 1.2 million compared to the same period of the previous year. The Adjusted EBITDA margin shows a 0.6% margin recovery over the period, from 6.1% in H1 2022 to the current 6.7%, as a direct result of the higher absorption of fixed costs due to the strong revenue growth in the period and a careful cost control policy implemented by management. As already noted, the increase in margin resulting from the appreciation of the euro against
3 Germany/Austria, France, Spain/Portugal, Benelux and Switzerland.
the US dollar in the first few months of 2023 was not significant, as the period cost of sales includes inventories built in the last half of 2022, when the EUR/USD exchange rate was much more unfavourable. Adjustments made to EBITDA, excluding depreciation and amortisation, amounted to EUR 0.8 million during the first six months of 2023 (EUR 42.0 million at 30 June 2022) and mainly consisted of: (i) non-recurring costs/(revenues) (EUR 0.7 million); (ii) operating exchange gain (EUR 0.07 million).
Net financial income and expense for H1 2023 comes to a negative EUR 1.8 million, while in H1 2022, expense was recorded for EUR 0.7 million. The higher net financial expenses (EUR 1.1 thousand) recorded are mainly attributable to the increase in interest rates on medium- and long-term loans, as well as the absence of the positive effect of the change in the fair value of warrants that were outstanding in the previous period (EUR 0.3 million at 30 June 2022).
Furthermore, in the first half of 2023, there was an exchange gain of EUR 0.1 million, compared to EUR 1.3 million in the same period of the previous year. The decrease of EUR 1.2 million is mainly due to the trend of the EUR/USD exchange rate.
The Group's adjusted loss for H1 2023 is EUR 1.1 million (a loss of EUR 0.3 million at 30 June 2022). The adjustments made to the Group's economic result, in addition to non-recurring costs,revenues and operating exchange rate differences (see Adjusted EBITDA above) and amortisation and depreciation related to the Purchase Price Allocation amounting to EUR 3.3 million, are mainly due to the tax effects of the items being adjusted.
Net Financial Indebtedness at 30 June 2023 is EUR 48.6 million (EUR 40.4 million at end 2022).
The increase in Net Financial Indebtedness of EUR 8.2 million as of 30 June 2023, compared to 31 December 2022, is mainly attributable to the acquisition of Peter Jäckel GmbH (EUR 6.9 million, including the disbursement occurred in January 2023, valuation of the Put/Call options for the purchase of the remaining capital and net financial debts of the acquired company).
The impact on the Group's cash and cash equivalents as at 30 June 2023, however it is significantly lower (- EUR 2.5 million)
Operating cash flow for the period, amounted to EUR 1.1 million (EUR 3.6 million in the first half of 2022); the difference is mainly due to the trend in Operating Working Capital.
Cash and cash equivalents (EUR 12.4 million), the committed credit facility for M&As inherent in the existing medium/long-term loan agreement (EUR 10.0 million) and unused available trade credit facilities and factors (EUR 12.0 million) ensure the Group's high level of financial soundness, as well as adequate flexibility for possible future acquisitions.
The Manager responsible for preparing the financial information, Mauro Borgogno, states, pursuant to paragraph 2 of article 154-bis of the Consolidated Finance Act, that the financial reporting in this press release corresponds with the documentary records, ledgers and accounting entries.
The following are appended:
Management will present the consolidated results as at 30 June 2023 to the financial community during a conference call to be held on 07 September 2023 at 09:30 CET.
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To participate in the conference call, dial: +39 02 36213011.
The slides from the presentation and any supporting material will be available before the start of the conference call, on the site https://investors.cellularlinegroup.com/en/reports/#presentations.
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Note that the figures shown are currently being verified by the auditors.
This press release is available on the Company's website www.cellularlinegroup.com, Investors/Press Releases section and on the authorised storage system .
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Cellularline S.p.A., founded in Reggio Emilia in 1990, is, together with its brands Cellularline, PLOOS, AQL, MusicSound, Interphone, Nova, Skross, Coverlab, Allogio and Peter Jäckel, the leading company in the smartphone and tablet accessories sector. The Group is at the technological and creative forefront of the multimedia device accessories industry, striving to deliver products synonymous with outstanding performance, ease of use and a unique user experience. The Group currently has 250 employees. Cellularline brand products are sold in over 60 countries.
Cellularline S.p.A. - Investor Relations Close to Media – Press Office
ir@cellularlinegroup.com Enrico Bandini +39 335 8484706 enrico.bandini@closetomedia.it Alberto Selvatico +39 334 6867480 alberto.selvatico@closetomedia.it
Davide Casi davide.casi@closetomedia.it
ANNEX A
| (In thousands of Euro) | Balance as at | Of which related |
Balance as at 31 December |
Of which related |
|---|---|---|---|---|
| ASSETS | 30 June 2023 | parties | 2022 | parties |
| Intangible assets | 53,861 | 54,826 | ||
| Goodwill | 37,792 | 34,272 | ||
| Property, plant and equipment | 7,684 | 7,726 | ||
| Equity investments in associates and other | 71 | 71 | ||
| companies | ||||
| Right-of-use assets | 4,573 | 4,388 | ||
| Deferred tax assets | 5,409 | 5,122 | ||
| Financial assets | - | - | ||
| Total non-current assets | 109,390 | 106,405 | ||
| Inventories | 49,182 | 41,400 | ||
| Trade receivables | 48,230 | 3,010 | 53,291 | 3,707 |
| Current tax assets | 754 | 970 | ||
| Financial assets | 157 | 75 | ||
| Other assets | 8,130 | 3,371 | ||
| Cash and cash equivalents | 12,366 | 9,916 | ||
| Total current assets | 118,819 | 109,023 | ||
| TOTAL ASSETS | 228,209 | 215,428 | ||
| Share capital | 21,343 | 21,343 | ||
| Other reserves | 106,188 | 168,737 | ||
| Retained earnings | 2,730 | 15,554 | ||
| Profit for the year attributable to owners of the | (4,036) | (75,166) | ||
| parent | ||||
| Equity attributable to owners of the parent | 126,225 | 130,468 | ||
| Equity attributable to non-controlling interests | - | - | ||
| Total Equity | 126,225 | 130,468 | ||
| LIABILITIES | ||||
| Financial liabilities | 16,006 | 15,709 | ||
| Deferred tax liabilities | 3,349 | 2,762 | ||
| Employee benefits | 518 | 524 | ||
| Provisions for risks and charges | 2,493 | 1,356 | ||
| Other financial liabilities | 13,125 | 9,457 | ||
| Total non-current liabilities | 35,491 | 29,808 | ||
| Financial liabilities | 30,390 | 23,788 | ||
| Trade payables | 26,993 | 23,580 | ||
| Current tax liabilities | 374 | 772 | ||
| Provisions for risks and charges | - | - | ||
| Other liabilities | 7,179 | 5,591 | ||
| Other financial liabilities | 1,557 | 1,421 | ||
| Total current liabilities | 66,493 | 55,152 | ||
| TOTAL LIABILITIES | 101,984 | 84,960 | ||
| TOTAL EQUITY AND LIABILITIES | 228,209 | 215,428 |
ANNEX A
| (thousands of Euro) | Half year ending on 30/06/2023 |
of which with related parties |
Half year ending on 30/06/2022 |
of which with related parties |
|---|---|---|---|---|
| Revenue from sales | 67,820 | 2,012 | 54,558 | 1,996 |
| Cost of sales | (43,467) | (35,231) | ||
| Gross operating profit | 24,353 | 19,327 | ||
| Sales and distribution costs | (14,130) | (12,655) | ||
| General and administrative costs | (13,588) | (6) | (52,224) | (6) |
| Other non-operating costs/(revenue) | 691 | 802 | ||
| Operating profit/(loss) | (2,674) | (44,750) | ||
| Financial income | 60 | 308 | ||
| Financial expense | (1,823) | (998) | ||
| Foreign exchange gains/(losses) | 106 | 1,329 | ||
| Gains on equity investments | 0 | 0 | ||
| Profit/(loss) before taxes | (4,331) | (44,111) | ||
| Current and deferred taxes | 295 | 1,100 | ||
| Profit for the period before non-controlling interests | (4,036) | (43,011) | ||
| Profit (loss) for the period attributable to non-controlling interests |
- | - | ||
| Profit for the year attributable to owners of the parent | (4,036) | (43,011) | ||
| Basic earnings per share (Euro per share) | (0.19) | (2.11) | ||
| Diluted earnings per share (Euro per share) | (0.19) | (2.11) |
| (thousands of Euro) | Half year ending on 30/06/202 3 |
Half year ending on 30/06/2022 |
|---|---|---|
| Profit for the year attributable to owners of the parent | (4,036) | (43,011) |
| Other components of comprehensive income that will not be reclassified to profit or loss |
||
| Actuarial gains (losses) on defined benefit plans | (16) | 194 |
| Actuarial gains (losses) on provisions for risks | (19) | 298 |
| Gains/(losses) on translation of foreign operations | 84 | 588 |
| Income taxes | 8 | (137) |
| Total other components of comprehensive expense for the period |
58 | 943 |
| Total comprehensive economic results for the period | (3,978) | (42,068) |
ANNEX A
| Half year | Half year | |
|---|---|---|
| (thousands of Euro) | ending on 30/06/2023 |
ending on 30/06/2022 |
| Gains/(losses) of the period | (4,036) | (43,011) |
| Amortisation, depreciation and impairment of goodwill | 6,463 | 46,000 |
| Net impairment losses and accruals | 198 | (492) |
| Accrued financial (income)/expense | 1,718 | 643 |
| Current and deferred taxes | (295) | (1,100) |
| Other non-monetary changes | 51 | 66 |
| 4,100 | 2,106 | |
| (Increase)/decrease in inventories | (6,537) | (13,156) |
| (Increase)/decrease in trade receivables | 6,024 | 8,156 |
| Increase/(decrease) in trade payables | 3,258 | 2,855 |
| Increase/(decrease) in other assets and liabilities | (2,965) | 5,653 |
| Payment of employee benefits and change in provisions | 6 | (81) |
| Cash flow generated (absorbed) by operating activities | 3,886 | 5,531 |
| Interest paid and other net charges paid | (1,668) | (998) |
| Income taxes paid | (1,075) | (941) |
| Net cash flows generated by operating activities | 1,143 | 3,592 |
| Acquisition of subsidiaries, net of cash acquired | (2,552) | - |
| Purchase of property, plant and equipment and intangible assets |
(2,233) | (2,829) |
| Net cash flows used in investing activities | (4,785) | (2,829) |
| (Dividends distributed) | - | (1,012) |
| Other financial assets and liabilities (*) | (585) | (962) |
| Other changes in equity | (342) | 355 |
| Decrease in bank loans and borrowings and loans and borrowings from other financial backers |
6,891 | 1,735 |
| Payment of transaction costs relating to financial liabilities | 45 | 48 |
| Net cash flows generated (used) by financing activities | 6,008 | 164 |
| Increase/(decrease) in cash and cash equivalents | 2,367 | 927 |
| Effect of exchange rate fluctuations (*) | 84 | 588 |
| Total cash flow | 2,451 | 1,513 |
| Opening cash and cash equivalents | 9,916 | 8,138 |
| Closing cash and cash equivalents | 12,366 | 9,651 |
| (thousands of Euro) | Half year ending on |
Of which related |
% of | Half year ending on |
Of which related |
% of |
|---|---|---|---|---|---|---|
| 30/06/2023 | parties | revenue | 30/06/2022 | parties | revenue | |
| Revenue from sales | 67,820 | 2,012 | 100% | 54,558 | 1,996 | 100.0% |
| Cost of sales | (43,467) | -64.1% | (35,231) | -64.6% | ||
| Gross profit margin | 24,353 | 35.9% | 19,327 | 35.4% | ||
| Sales and distribution costs | (14,130) | -20.8% | (12,655) | -23.2% | ||
| General and administrative costs | (13,588) | (6) | -20.0% | (52,224) | (6) | -95.7% |
| Other non-operating (expense)/revenue | 691 | 1.0% | 802 | 1.5% | ||
| Operating profit/(loss) | (2,674) | -3.9% | (44,750) | -82.0% | ||
| * of which PPA amortisation | 3,325 | 4.9% | 3,225 | 5.9% | ||
| * of which impairment of goodwill | 0.0% | 39,925 | 73.2% | |||
| * of which non-recurring | 699 | 1.0% | 968 | 1.8% | ||
| expense/(revenue) | ||||||
| * of which foreign exchange gains/(losses) | 72 | 0.1% | 1,116 | 2.0% | ||
| Adjusted operating profit/loss (Adjusted EBIT) |
1,422 | 2.1% | 484 | 0.9% | ||
| * of which depreciation and amortisation (excluding PPA amortisation) |
3,133 | 4.6% | 2,835 | 5.2% | ||
| Adjusted EBITDA | 4,555 | 6.7% | 3,319 | 6.1% | ||
| Financial income | 60 | 0.1% | 308 | 0.6% | ||
| Financial expense | (1,823) | -2.7% | (998) | -1.8% | ||
| Foreign exchange gains/(losses) | 106 | 0.2% | 1,329 | 2.4% | ||
| Gains/(losses) on equity investments | 0 | 0.0% | - | 0.0% | ||
| Profit/(loss) before taxes | (4,331) | -6.4% | (44,111) | -80.9% | ||
| * of which PPA amortisation | 3,325 | 4.9% | 3,225 | 5.9% | ||
| * of which impairment losses on the | 0.0% | 0.0% | ||||
| customer relationship | - | - | ||||
| * of which impairment test on goodwill | - | 0.0% | 39,925 | 73.2% | ||
| * of which non-recurring expense/(revenue) |
699 | 1.0% | 968 | 1.8% | ||
| * of which fair value impact on the warrant | 0 | 0.0% | (307) | -0.6% | ||
| and put&call | ||||||
| Adjusted profit/loss before taxes | (307) | -0.5% | (300) | -0.5% | ||
| Current and deferred taxes | 295 | 0.4% | 1,100 | 2.0% | ||
| Profit (loss) for the year attributable to owners of the parent |
(4,036) | -6.0% | (43,011) | -78.8% | ||
| * of which PPA amortisation | 3,325 | 4.9% | 3,225 | 5.9% | ||
| * of which impairment losses on the | - | 0.0% | - | 0.0% | ||
| customer relationship | ||||||
| * of which impairment test on goodwill | - | 0.0% | 39,925 | 73.2% | ||
| * of which non-recurring | 699 | 1.0% | 968 | 1.8% | ||
| expense/(revenue) | ||||||
| * of which fair value impact on the warrant | 0 | 0.0% | (307) | -0.6% | ||
| * of which tax effect on the above items Adjusted profit (loss) for the year |
(1,107) | -1.6% | (1,080) | -2.0% | ||
| attributable to owners of the parent | (1,120) | -1.7% | (280) | -0.5% |
NB: for the purpose of a better presentation of the company's results, the transport costs associated with material purchases were subdivided from transport on sales and classified under "Cost of Sales"; for consistency, the 2022 figures have been reclassified accordingly.