(Alliance News) - Redelfi Spa announced Monday that it has approved an update to its 2023-2026 business plan.

In the coming years, the group's activities will be focused on the expansion of the Green business unit and, in particular, the development of stand-alone Battery Energy Storage System projects in both the US and Italy.

In fact, while the CAGR on total sales in the updated 2023-2026 plan is about 50 percent, that of the Green business unit alone is 57 percent.

The updated 2023-2026 plan is essentially based on five drivers: achieving BESS Power Corporation's target of 2.4 GW, increasing Redelfis presence in the U.S. market by an additional 2 GW, completing the first Italian pipeline with a total capacity of about 1 GW, developing a second Italian pipeline with a total capacity of 2.8 GW, and creating Renewable Energy Communities in Italy.

Comparing the updated 2023-2026 plan with the initial plan, an increase in business volume and profitability is evident as early as 2023 and, most importantly, an important increase in Ebitda, which will already register a positive change of more than 120% in 2024 compared to what was previously assumed.

This significant increase in projections is mainly the result of the sudden growth of the Green business unit, which in the current fiscal year has acquired a key role in the industrial strategy of the Redelfi group and will therefore bring in higher margins than those derived from the other business units. Specifically, the incidence of the Green division will reach 93 percent of consolidated sales in 2026, with an overall consolidated Ebitda margin of about 69 percent, more than 10 percentage points higher than the 2022-2026 plan.

The value of production is expected to be EUR34.0-35.2 million at the end of the plan from EUR10.3-10.5 million this year; Ebitda in the EUR23.3-24.3 million range in 2026 from EUR4.7-4.9 million in the current year; and the Net Financial Position will show cash d EUR16.5-17.5 million from debt of EUR5.6-5.8 million in the year that is ending.

Davide Sommariva, chairman of Redelfi's board of directors, said, "We are very proud to have fulfilled the commitment we made last year with the market and to present today an update of the business plan that reports even more ambitious targets, in line with the company's strategy, which also forecasts better results for 2023 than assumed in November 2022."

"The key events that allowed Redelfi to accelerate its business in such a short time were numerous, and among them, certainly the entry into the Italian market of BESS - which has enormous growth potential - is a relevant factor. Precisely because of this acceleration, we consider it essential to focus all our resources on the Green business unit in order to position ourselves, at the end of the 2023-2026 plan, as an international leader in BESS development."

Redelfi's stock closed Monday down 10 percent at EUR5.96 per share.

By Giuseppe Fabio Ciccomascolo, Alliance News senior reporter

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