(Alliance News) - Emak Spa reported Wednesday that it closed the first quarter of the year with a consolidated net profit of EUR7.9 million, down from EUR11.4 million a year earlier. The result was affected by higher financial expenses due to higher market interest rates and a higher level of gross debt, the company explained in a note.

Revenues amounted to EUR170.1 million compared to EUR171.8 million in the first quarter of 2023. This change, the company explains, stems from a 5.5 percent organic decline in sales, partially offset by the positive effects of the 4.3 percent change in the scope of consolidation and the 0.2 percent change in translation.

Adjusted Ebitda amounted to EUR21.8 million from EUR25.3 million in the first quarter of the previous year. Changes in the scope of consolidation contributed EUR1.1 million. At the organic level, the industrial margin was in line with the same period, while the decline in sales and the concomitant increase in personnel, transportation and commercial costs resulted in a negative leverage effect.

Ebit dropped to EUR13.7 million from EUR18.2 million in the first quarter of the previous year.

Net financial position liabilities stood at EUR231.5 million compared to EUR227.2 million as of March 31, 2023 and EUR191.5 million as of December 31, 2023.

Based on the results and current market conditions, "management is confident that it will be able to achieve a higher half-year sales result than in the same period of 2023," the company states.

Emak's stock trades in the red by 1.1 percent at EUR1.21 per share.

By Chiara Bruschi, Alliance News reporter

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