Isagro revenues from agropharma and services up 37% in 1Q 2021
May. 14, 2021
On May 13, The Board of Directors of Isagro S.p.A. approved the Consolidated Interim Result Report as of March 31st, 2021.
1Q 2021 consolidated data
In 1Q 2021, Isagro registered:
Revenues from Agropharma and Services growing by 37% to 49.3 Euro million vs. 35.9 million of 1Q 2020;
an EBITDA adjusted, i.e., excluding the non-recurring allowances related to the implementation of the conditions precedent, positive for 7.9 Euro million vs. the value of 4.3 million of 1Q 2020;
a Consolidated EBITDA positive for 5.6 Euro million vs. the value of 4.3 million of 1Q 2020;
a Net result positive for 2.4 Euro million vs. the profit of 0.6 million of 1Q 2020;
a Net financial position at credit (cash) for 17.6 Euro million (vs. the Net cash of 21.4 Euro million as of December 31st, 2020 and the Net financial position at debt for 39.4 Euro million as of March 31st, 2020), of which 2.3 Euro million due to the application of the accounting principle IFRS 16-Leases, and a debt/equity ratio of -0.16. Excluding the amount linked to IFRS 16, the Net financial position as at March 31st, 2021 would be equal to 19.9 Euro million cash, with a debt/equity ratio of -0.18.
With reference to the variation of Revenues from Agropharma and Services vs. 1Q 2020, the higher sales of 1Q 2021 are mainly attributable to higher revenues achieved in copper, tetraconazole, delthametrine and biostimulants segments in the areas of EMEA, South America and South-East Asia. Isagro, with reference to the global critical situation due to the Covid-19 pandemic, has not experienced specific pressures in terms of lower sales on its product/customer segments.
New business model of Isagro and integration in Gowan Group
Starting from the second half of 2019 and throughout 2020, Isagro actively worked at the implementation of its new business model, today fully operating even if not yet completed, implying a specific focus on the development of market positions and products/formulations related to “Bio-Copper” (i.e. products of biological/natural origin and copper-based products, the latter ones belonging to inorganic chemicals), also through acquisitions financed through the divestment of no longer strategic assets.
This led to an important turning point in the financial structure of Isagro starting from October 2020, with e Net financial position as of March 31st, 2021 at credit for 17.6 Euro million (value already net of 2.3 Euro million attributable to the accounting principle IFRS 16). At the same time, the Group is experiencing an increasing phase of its turnover, which in the first quarter of 2021 grew by 37% vs. 1Q 2020: this led to a Net Result which, excluding the extraordinary items relating to the disposal of assets linked to countries under embargo by the United States government, moved from the value of 0.6 Euro million in 1Q 2020 to the value of 4.7 Euro million in 1Q 2021 (equal to 2.4 million net of the extraordinary items).
In fact, regarding the above, it shall be remembered that on March 6th, 2021 Piemme S.r.l.’s Shareholders (company that indirectly holds, through the sub holding Holdisa S.r.l., the majority of Ordinary Shares of Isagro S.p.A.) signed a binding Agreement with Gowan (current minority shareholder of Holdisa, holding 49% of capital stock), to sell their quotas in Piemme and Ordinary and Growth Shares of Isagro to Gowan itself, with Closing to take place on May 14, 2021.
Following such change of control Growth Shares shall be converted into Ordinary Shares in the ratio 1:1 and Gowan will run a mandatory tender offer at 2.76 euro per share, with a subsequent delisting of Isagro.
The above transaction and the related valorization of Isagro represent a recognition of the important work carried out by Group’s management in particular in the last two years and of the fact, repeatedly brought to the attention of the Market, that the past stock prices underestimated the real value of Isagro.
It is believed that the integration of Isagro Group within the Gowan Group will bring numerous benefits in terms of synergies and enhancement of skills and know-how of Isagro itself.
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