ITALY - The Biesse Group, a world leader in wood processing technology, reported that sales revenue in 2020 amounted to EUR 578.8 million, 18 percent less than in 2019.
Western Europe is once again the Group's most relevant market in 2020, generating 49.9% of the total (2019: 46.9%). The Wood and Glass / Stone Divisions had a participation in the consolidated turnover of 2020 of 71.7% and 17.2% respectively.
The aforementioned drop in volumes was reflected in the operating result for the period, as indicated by the EBITDA, which was 56 million euros, 27% less than in 2019 (EUR 76.7 million).
In the last quarter of 2020, the drop in sales and in EBITDA was much more moderate, registering decreases of 6.3% and 5.6% respectively maintaining the EBITDA margin stable compared to the same period of 2019.
“What happened, in particular in the last quarter of the previous year - commented the Group CFO Mr. P. La Tour on the sidelines of the Board of Directors meeting - is undoubtedly a source of satisfaction and mitigates the anything but positive assessments regarding the whole of 2020. Our commitment – which has never been lacking even at the most difficult times – has been rewarded by the market, even beyond expectations. Nevertheless, what happened recently should not make us take our foot off the accelerator: the operating results for 2020 are still lower than those of the previous year, an obvious consequence of the social and health emergencies. The average production visibility deriving from our backlog is too low to give us reliable indications for the m/t. Therefore, without other clear drivers it’s necessary that our feelings are verified during this exercise. In this delicate phase, we want to further increase the efficiency necessary to sustain profitability, taking note of the positive cash generation, which has increased compared to the past without any tangible restrictions in research & development. What happened demonstrates how proper and prudent corporate governance can guarantee the Group adequate financial and capital solidity without jeopardizing its growth prospects. Along these lines, the Group has a long-term investment plan in mind that is consistent with the objectives to be achieved in the coming years.”
The Biesse Group also reported that their expected results for 2021 are of consolidated net sales in the range of EUR 610 - 630 million, an EBITDA margin in the range 7.7%-8.3%, and a positive Net Financial Position in the EUR 35 - 45 million range.
