Zignago Vetro announced the results for the third quarter and the first nine months of the year. The group is one of the leading manufacturers of high quality glass containers for beverages, food, cosmetics, perfumery and special glasses, intended for the domestic and international market. In both periods taken into consideration, Zignago Vetro exhibited double-digit growth in revenues and profits, despite inflationary pressures and logistical problems. Specifically, in the third quarter revenues increased by 14.5% on an annual basis, to 121.1 million.
EBITDA and EBIT were respectively 33.5 million (+ 18%) and 19.7 million (+ 34.4%). Net profit amounted to 15.1 million (+ 45.6%). The data beat the estimates of Intesa Sanpaolo analysts, who also expected a solid quarter: turnover of 115 million, ebitda of 32 million, ebit of 18.5 million and net profit of 13.9 million. The estimates of the Equita Sim experts with regard to revenues are also beaten, expected at 120 million, but not on the remaining items (ebitda at 34 million, ebit at 21 million, net profit at 16 million).
Cash generation, before investments, amounted to 38.3 million euros (31.6% of revenues, +18.3 million compared to the third quarter of 2020). Furthermore, during the quarter the construction of the plant of the subsidiary Julia Vitrum was completed, whose activity started in September and which represents an important expansion of the recycling and reuse capacity of glass cullet from urban separate waste collection. With this new plant, Zignago Vetro represents one of the main operators in the recovery and reuse of cullet in Italy.
In the first nine months, consolidated turnover amounted to € 354.1 million (+ 17.2% compared to 2020), of which 30.2% abroad. EBITDA and EBIT amounted, respectively, to 95.5 million, up by 23.5%, and to 54.6 million (+ 49.4%). Net income jumped 80% to 43.8 million. The free cash flow generated, before the payment of technical investments, amounted to 86.9 million euros (24.5% of revenues).
After the payment of technical investments for 59.9 million euros and dividends for 31.6 million, the free cash flow was positive, equal to 27 million. Net financial debt increased by 5.1 million, reaching 261 million (expected at 270 million by the analysts of Intesa and 256 million by those of Equita). In the third quarter alone, the value decreased by 13 million. The liquidity of the group has grown steadily, to 69 million euros from 62.5 million last year. Finally, the sustainability indicators (esg) are improving overall and close to the targets set for the end of the year.
In general, according to the company and as expected by Intesa Sanpaolo analysts, in the third quarter the markets showed signs of strength and a willingness to recover. The main reason was the progressive removal of the restrictive measures introduced by governments, which favored the recovery of consumption of both drinks and food, in particular those conveyed by the Ho.Re.Ca. channel, both in Italy and abroad, which of cosmetic and perfumery products. In the latter sector, where the impact of the pandemic has had the most lasting effects, there has also been a marked recovery in the luxury product segments, partly due to the rebuilding of stocks along the supply chain.
As regards the outlook, Zignago Vetro predicts that “the growing attitude of trust on the part of operators and the increasing appreciation that glass is experiencing among users and consumers are prerequisites to further support the consolidated development dynamics of the container market in On the basis of the evidence that emerged, it is foreseeable that the good trend observed so far will continue in the fourth quarter, despite some difficulties in the logistics chain “. This morning, before the accounts, Intesa Sanpaolo confirmed the add rating on the Zignago Vetro share and the target price of 20.2 euros, Equita hold with a target price of 17 euros. At Piazza Affari the shares of the Veneto group are trading up by 0.58% to 17.44 euros. (All rights reserved)

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