(Alliance News) - Brioschi Spa reported on Wednesday that it reported a net loss of EUR3.6 million as of Dec. 31, 2022 from a profit of EUR2.8 million in the same period last year.

Also in the annual financial statements, the parent company's overall result is negative EUR4.1 million from EUR700,000 as of Dec. 31, 2021.

Net financial position is EUR17.3 million from EUR31.5 million.

The major event in the year under review was the sale of the "U1" and "U3" properties in Milanofiori Nord finalized at the beginning of August. The sale took place for a consideration of EUR188.5 million and generated an operating margin of more than EUR60 million, reflected in the consolidated financial statements by approximately EUR43 million as the group subscribed to a minority stake in the vehicle that acquired the properties themselves.

With regard to the hotel business, the conclusion of the state of health emergency on March 31, 2022, essentially enabled a return to pre-Covid-19 revenue levels over the next nine months.

The Energy sector coped with the turbulence and volatility that characterized the commodity markets, trying to limit the impact these induced on gas procurement costs and, potentially, on operating margins.

From a financial point of view, the sale of the "U1" and "U3" buildings enabled the group to restore a situation of full balance, while generating sufficient cash to support operating, investment and financial activities.

Regarding the consolidated financial statements, the company reported a profit of EUR47.8 million from a loss of EUR2.1 million as of December 31, 2021.

Consolidated comprehensive income amounted to EUR32.9 million from a loss for EUR7.7 million in the previous year.

Net financial position decreased to EUR71.2 million from EUR221.3 million.

Looking ahead, "The 2022 fiscal year was characterized by a gradual improvement in the health situation, which allowed the authorities to remove the restrictions introduced to contain the spread of the pandemic, which had penalized, and in some cases made it impossible, to carry out some of the group's economic activities," the company explained in a note.

"The outbreak of the conflict between Russia and Ukraine has accentuated the growth in the prices of raw materials, including energy utilities, and in general of many factors of production. This context, among other things, has led to an increase in interest rates, configuring an economic scenario of general significant uncertainty with possible slowdowns in the reference markets. As for the real estate sector, activities, both operational and commercial, aimed at the realization of real estate projects in the portfolio will continue."

"From a financial point of view, financial requirements are expected to be met with existing cash and cash flows expected from operating, investment and financial activities."

Brioschi trades in the red by 0.2 percent at EUR0.08 per share.

By Claudia Cavaliere, Alliance News reporter

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