Piovan profits on the rise in first quarter 2024

(Picture Piovan)

The board of directors of Piovan approved the consolidated financial results for the first quarter 2024. Total revenues in the period amounted to 136 million euros, -3.6% compared to 31 March 2023 while the operating profit amounted to 15.1 million euros, up from 9.6 million euros in the first quarter of 2023. 

Adjusted Ebitda in the period was 16.3 million euros (12.0% of total revenue and other income), up 3.4% compared to 15.8 million euros recorded in the first quarter of financial year 2023, whereas the operating profit (Ebit), excluding the effects of Ipeg's Purchase Price Allocation topped 13.6 million euros, up from 13.3 million euros recorded in the same period of 2023. 

The Technical Polymers area (revenue in this area accounted for 78.5% of the total) recorded -8% in a market influenced by high interest rates and by the recycling sector, which in first quarter 2024 suffered from the uncertainty of European regulations in second quarter 2023, resulting in a slowdown in order intake. In contrast, applications in the medical and pharmaceutical sector are growing.

The order backlog at 31 March 2024 was stable compared to the figures at the end of 2023 and higher than the Group's historical averages, fuelling confidence in the results of the remainder of 2024. Piovan believes that European regulations will target the use of recycled plastics and compostable polymers. In addition, new regulations for the use of recycled plastic in food packaging are in the process of being approved in several countries in the Asian region, creating an opportunity to sell technologies for the automation, processing and screening of recycled and compostable plastics. Including the two months in business of the Indian joint venture company, NuVu, Piovan currently estimates, that about 29.4% of the automation systems sold in the packaging, fibre and recycling sector in the previous twelve months are destined for the use of recycled material.

The company is proceeding with the construction of its new Asian headquarters in Suzhou, China, scheduled for completion by the end of the year. This plant will not only significantly enhance production capacities in this strategic region for the Group, but will also feature sustainability-oriented infrastructure, such as photovoltaic plants and a dedicated training facility for employees and customers. In addition, since last February, the Company has launched a new strategic initiative in industrial and process refrigeration, resulting from the integration of the business segments operated by the recently acquired Thermal Care and the existing Aquatech, with the aim to create a global player in this market sector that will operate under the Thermal Care brand.