Sales up 42%, operating margin up 45% Another positive quarter for Merloni Elettrodomestici, which posted increases in sales and operating margin of 42% and 45%, respectively, compared to the 1st quarter of 2002.
The accounts for the 1st quarter of 2003 were reviewed by the board of directors meeting in Fabriano today. The results include figures for GDA (Hotpoint brand), the leading UK company acquired last year and 100% consolidated for the first time in this quarter.
In this quarter too, which was far from easy,- commented Vittorio Merloni, – we managed to record the strongest growth in our sector. These results are also down to the success of the GDA acquisition, which has proved to be a strategically valid decision for the Group.
The board of directors also approved the merger project of Philco Italia and Star, already under a 100% control of Merloni Elettrodomestici. The merger will be submitted to the extraordinary meeting of the shareholders of the companies involved in the project.
Main results for 1st quarter 2003
Sales amounted to ½703m, up 42% on the 1st quarter of 2002 (½495m). Of this 42% increase, 7% is attributable to internal growth and the remaining 35% to consolidation of GDA revenues.
Gross operating margin stands at €78m, up 51% on the 1st quarter of 2002 (€52m). As a percentage of sales this is 11%, against 10.4% in the 1st quarter of 2002. The variation is due mainly to continuing improvements in organization processes, economies of scale and reduction of the average costs of industrial procurement.
Operating margin, at €42m, is up 45% on the same period in 2002 (€29m). Operating margin over sales moves up to 6%, against the 5.9% posted in the 1st quarter of 2002.
Profits before tax stand at €36m, up 41.7% on the 1st quarter of 2002 (€26m).
Net financial indebtedness at the end of the quarter was €292m (€315m for the 1st quarter of 2002). The debt/equity ratio moved from 0.82 at the end of 2002 to 0.66 as of 31st March 2003.
New products
The coming months will see the launch of a completely renewed Ariston brand throughout Europe. New Ariston products will give European homes real benefits capable of improving the quality of people’s time ½ silent washing machines, vacuum fridges that increase food duration fourfold, dishwashers and washing machines with the time of washing cycles reduced by 30%.
The press release and 1st quarter figures are available on the Company’s website, www.merloni.com
The project of merger of Philco and Star into Merloni Elettrodomestici will be presented to public as provided by general regulations. The Information Document will not be released since this operation’s relevance is lower than the regulations in force standard.