(Alliance News) - Sabaf Spa reported Tuesday that it reported a net profit of EUR15.2 million for the year ended Dec. 31, 2022, from a profit of EUR23.9 million, down 38 percent from the same period a year earlier.

Revenues for the period amounted to EUR253.1 million, down 3.9 percent from EUR263.3 million as of December 31, 2021.

Ebitda was EUR40.1 million from EUR54.1 million in 2021 and down 26 percent from the previous year.

Ebit was EUR21.9 million from EUR37.5 million, down 42 percent from 2021.

"The year 2022 was a year of two speeds: in the first half of the year the intense and abnormal growth following the pandemic continued, while the second half of the year saw a settling of the target market. In particular, in the second half of the year, demand began to flex and client companies sharply reduced inventories, a trend that coincided with a significant rise in energy and commodity prices. The results in 2022, satisfactory in terms of revenues and margins but lower than those in 2021, are an expression of these factors," the company explained in a note.

"In the first quarter of 2023, demand has normalized, energy prices have fallen sharply, and commodity prices are gradually trending toward lower average levels in 2022. The destocking that characterized the second half of last year can be considered over; sales in the first half of 2023, while not reaching the record highs of early 2022, are projected to be higher in the second half of 2022. These factors, combined with extremely positive market feedback for induction cooking components, the contribution of the new production facilities in India and Mexico, and the integration of PGA(acquired in 2022) into the Electronics Division, look forward to a year of progressive and substantial recovery. The implementation of the industrial plan, including the acceleration of growth by external lines, continues on schedule."

The board also resolved to renew the buyback program by providing authorization to purchase more than 1.1 million shares of the company.

Sabaf is down 1.9 percent at EUR15.40 per share.

By Claudia Cavaliere, Alliance News reporter

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