In the first nine months of 2024, SIT achieved:
- Consolidated revenues of Euro 222.8 million (-8.0% compared to the same period of 2023);
- Heating&Ventilation Division sales of Euro 155.5 million (-11.7% compared to the first nine months of 2023);
- Metering Division sales of Euro 65.1 million (+1.8% compared to the same period of 2023), of which Smart Gas Metering sales of Euro 43.3 million (-2.6%) and Water Metering of Euro 21.8 million (+11.8%);
- Consolidated EBITDA of Euro 19.4 million vs Euro 20.0 million compared to the same period of 2023;
- Consolidated net income of Euro -8.3 million vs Euro -19.4 million of the first nine months 2023;
- Cash flow from operations positive for Euro 3.6 million after capex for Euro 11.8 million;
- Net financial debt at Euro 159.0 million, of which Euro 11.6 million from IFRS16, in line with September 30, 2023.
In the third quarter of 2024, the results are:
- Consolidated revenues of Euro 71.9 million, -4.4% compared to the third quarter of 2023;
- Heating&Ventilation Division sales of Euro 52.1 million, -1.3% compared to the to the third quarter of 2023;
- Metering Division sales of Euro 19.3 million, -10.7% compared to the third quarter of 2023, of which Smart Gas Metering sales of Euro 11.8 million (-20.8%) and Water Metering of Euro 7.5 million (+12.0%).
***
Padua, November 8, 2024 – The Board of Directors of SIT S.p.A., a company listed on the Euronext Milan segment of the Italian Stock Exchange, at today’s meeting chaired by Federico de’ Stefani, Chairman and Chief Executive Officer of SIT, approved the consolidated results for the first nine month of 2024.
Federico de’ Stefani, Chairman and Chief Executive Officer of SIT stated:
“Although our current performance doesn’t yet reflect our expectations, we have begun to reposition ourselves in high-potential sectors, bringing innovative technological solutions and products to the market that will contribute to the Group’s performance as early as 2025. In addition, the cost reduction actions taken in the first nine months of the year are already showing concrete benefits, which will continue in the coming months.
Looking positively to 2025, despite a market with extremely limited visibility, we are confident that we can achieve satisfactory results in the near future.
In fact, we expect SIT’s market share to grow, thanks especially to the introduction of new products and the consolidation of the Group’s strategic commercial relationships.”
KEY FINANCIALS
| (Euro,000) | 9M 2024 | % | 9M 2023 | % | Diff% |
| Revenues from contracts with customers | 222,831 | 100.0% | 242,097 | 100.0% | -8.0% |
| EBITDA | 19,420 | 8.7% | 20,038 | 8.3% | -3.1% |
| Operating income (EBIT) | (1,476) | -0.7% | (20,207) | -8.3% | 92.7% |
| Net income | (8,301) | -3.7% | (19,379) | -8.0% | 57.2% |
| Net income adjusted | (5,306) | -2.4% | 882 | 0.4% | – |
| Cash flow from operations | 3,571 | (22,276) |
| (Euro,000) | 30/09/2024 | 31/12/2023 | 30/09/2023 |
| Net financial debt | 159,000 | 153,690 | 158,963 |
| Net trade working capital | 77,010 | 79,858 | 85,247 |
| Net trade working capital/Revenues | 25.9% | 24.5% | 26.3% |
Sales performance
Consolidated revenues by Division
| (Euro,000) | 2024.09 | % | 2023.09 | % | diff | diff % |
| Heating & Ventilation | 155,531 | 69.8% | 176,096 | 72.7% | (20,564) | (11.7%) |
| Metering | 65,124 | 29.2% | 63,958 | 26.4% | 1,166 | 1.8% |
| Total sales | 220,656 | 99.0% | 240,054 | 99.2% | (19,398) | (8.1%) |
| Other revenues | 2,175 | 1.0% | 2,043 | 0.8% | 132 | 6.5% |
| Total revenues | 222,831 | 100% | 242,097 | 100% | (19,266) | (8.0%) |
| (Euro,000) | 2024.Q3 | % | 2023.Q3 | % | diff | diff % |
| Heating & Ventilation | 52,052 | 72.4% | 52,737 | 70.1% | (685) | (1.3%) |
| Metering | 19,307 | 26.8% | 21,608 | 28.7% | (2,302) | (10.7%) |
| Total sales | 71,359 | 99.2% | 74,345 | 98.8% | (2,986) | (4.0%) |
| Other revenues | 580 | 0.8% | 877 | 1.2% | (297) | (33.9%) |
| Total revenues | 71,939 | 100% | 75,222 | 100% | (3,283) | (4.4%) |
Consolidated revenues by geography
| (Euro,000) | 2024.09 | % | 2023.09 | % | diff | diff % |
| Italy | 69,995 | 31.4% | 73,509 | 30.4% | (3,513) | (4.8%) |
| Europe (excluded Italy) | 93,979 | 42.2% | 112,607 | 46.5% | (18,628) | (16.5%) |
| America | 35,726 | 16.0% | 34,065 | 14.1% | 1,661 | 4.9% |
| Asia/Pacific | 23,130 | 10.4% | 21,916 | 9.1% | 1,214 | 5.5% |
| Total revenues | 222,831 | 100% | 242,097 | 100% | (19,266) | (8.0%) |
| (Euro,000) | 2024.Q3 | % | 2023.Q3 | % | diff | diff % |
| Italy | 18,997 | 26.4% | 22,614 | 30.1% | (3,618) | (16.0%) |
| Europe (excluded Italy) | 31,654 | 44.0% | 34,517 | 45.9% | (2,863) | (8.3%) |
| America | 13,284 | 18.5% | 10,197 | 13.6% | 3,086 | 30.3% |
| Asia/Pacific | 8,005 | 11.1% | 7,893 | 10.5% | 111 | 1.4% |
| Total revenues | 71,939 | 100% | 75,222 | 100% | (3,283) | (4.4%) |
Consolidated revenues for the first nine months of 2024 amounted to Euro 222.8 million, recording a decrease of 8.0% compared to the same period of 2023 (Euro 242.1 million).
Consolidated revenues for the third quarter of 2024 amounted to Euro 71.9 million, a decrease of 4.4% compared to the same period of 2023 (Euro 75.2 million).
Sales of the Heating & Ventilation Division in the first nine months of 2024 amounted to Euro 155.5 million, -11.7% compared to Euro 176.1 million in the same period of 2023.
The following table shows the business sales by geography of the Heating & Ventilation Division according to management data:
| (Euro,000) | 2024.09 | % | 2023.09 | % | diff | diff % |
| Italy | 26,772 | 17.2% | 28,527 | 16.2% | (1,755) | (6.2%) |
| Europe (excluded Italy) | 71,965 | 46.3% | 92,003 | 52.2% | (20,039) | (21.8%) |
| America | 32,742 | 21.1% | 32,476 | 18.4% | 266 | 0.8% |
| Asia/Pacific | 24,053 | 15.5% | 23,090 | 13.1% | 963 | 4.2% |
| Total sales | 155,531 | 100% | 176,096 | 100% | (20,564) | (11.7%) |
| (Euro,000) | 2024.Q3 | % | 2023.Q3 | % | diff | diff % |
| Italy | 7,609 | 14.6% | 6,934 | 13.1% | 674 | 9.7% |
| Europe (excluded Italy) | 24,662 | 47.4% | 27,874 | 52.9% | (3,212) | (11.5%) |
| America | 11,978 | 23.0% | 9,671 | 18.3% | 2,307 | 23.9% |
| Asia/Pacific | 7,804 | 15.0% | 8,258 | 15.7% | (454) | (5.5%) |
| Total sales | 52,052 | 100% | 52,737 | 100% | (685) | (1.3%) |
The Heating & Ventilation Division recorded a trend in Q3 substantially in line with the same period of the previous year, while the comparison of the 9M was affected by the first quarter of 2023, still influenced by sector incentives.
Geographically, in Q3 there was growth in Italy of 9.7% compared to the same period of 2023 and in America of 23.9%. Europe (excluding Italy) decreased in the quarter by 11.5% and the Pacific area by 5.5%, mainly due to the performance of the Australian market.
As regards the Metering Division, Smart Gas Metering recorded a reduction of 20.8% in Q3 compared to the previous year due to some shipping delays that will be recovered during the year, confirming the presence of an order book in line with forecasts. Water Metering recorded a growth 12.0% growth in the quarter compared to the previous year.
Smart Gas Metering achieved sales substantially in Italy, while in the third quarter of 2024 Water Metering achieved sales in Portugal for 23.4%, Spain for 40.0%, rest of Europe for 20.7% and in America and Asia for 13.2% and 2.7% respectively.
Economic performance
Consolidated revenues for the first nine months of 2024 amounted to Euro 222.8 million, a reduction of 8.0% compared to the same period of 2023 (Euro 242.1 million).
The purchase cost of raw materials and consumables, including changes in inventories, was Euro 115.8 million equal to 52.0% on revenues compared to 52.7% in the same period of 2023.
Service costs in the period amounted to Euro 33.2 million, compared to Euro 34.9 million in the same period of the previous year (respectively equal to 14.9% and 14.4% of revenues).
Personnel costs amounted to Euro 56.2 million (Euro -2.3 million), 25.2% on revenues, increasing from 24.2% in the same period of the previous year.
Depreciation, amortization and impairment losses, amounting to Euro 20.9 million, equal to 9.4% of revenues for the period and compared to Euro 40.4 million in the first nine months of 2023, including the impairment of goodwill recorded for Euro 17.0 million following the impairment test carried out on the invested capital of the Heating & Ventilation CGUs due to the changed sector context.
Finally, other net income of Euro 2.0 million was recorded from certain disposals of assets carried out as part of the optimization of the invested capital of the Heating & Ventilation Division.
The operating result amounted to Euro -1.5 million (0.7% of revenues) against an operating loss of Euro 20.2 million (8.3% of revenues) in the first nine months of 2023.
Net financial expenses for the first nine months of 2024 amounted to Euro 8.9 million compared to Euro 5.2 million in the same period of the previous year. It should be noted that in the period under review it was necessary to record the cost deriving from the renegotiation concluded with the banks during 2024 according to the amortised cost method pursuant to IFRS 9. This resulted in a financial cost of Euro 3.9 million.
Adjusted net financial expenses, net of the aforementioned non-recurring items, amounted to Euro 5.0 million in the period, compared to Euro 5.2 million in the same period of the previous year.
Income taxes for the period were positive for Euro 1.9 million and reflect the allocation of deferred tax assets deriving mainly from recoverable tax losses accrued by the Parent Company.
The net result for the period amounted to a loss of Euro 8.3 million compared to a loss of Euro 19.4 million in the same period of 2023.
Adjusted net profit, net of the adjustments and valuations described above, amounted to a loss of Euro 5.3 million (2.4% of revenues) compared to a profit of Euro 0.9 million (0.4%) in the same period of 2023.
Financial performance
As of September 30, 2024, net financial debt was Euro 159,0 at the same level as of September 30, 2023. The evolution of the net financial position is shown in the table below:
| (Euro.000) | 9M 2024 | 9M 2023 |
| Cash flow from current activities (A) | 16,485 | 22,287 |
| Change in inventories | (4,438) | (5,116) |
| Change in trade receivables | 3,178 | 14,344 |
| Change in trade payables | 3,692 | (18,945) |
| Change in other current assets and liabilities and for taxes | (3,583) | (18,226) |
| Cash flow from changes in Working Capital (B) | (1,151) | (27,943) |
| CASH FLOW FROM OPERATING ACTIVITIES (A + B) | 15,335 | (5,656) |
| Cash flow from investing activities (C) | (11,764) | (16,620) |
| CASH FLOW FROM OPERATING & INVESTING ACTIVITIES (A + B + C) | 3,571 | (22,276) |
| Changes for interest | (5,263) | (5,236) |
| Changes MTM derivatives and amortised cost | (4,514) | 240 |
| Changes in translation reserve and other equity items | (470) | (1,469) |
| Changes to financial assets | 1,783 | 913 |
| IFRS 16 | (417) | (632) |
| Change in net debt | (5,310) | (28,460) |
| Initial net debt | 153,690 | 130,503 |
| Final net debt | 159,000 | 158,963 |
Cash flows for the first nine months of 2024 show the generation of cash flows from current operations of Euro 16.5 million compared to Euro 22.3 million in the same period of 2023.
In the first nine months of 2024, the absorption of working capital amounted to Euro 1.2 million compared to Euro 27.9 million in the same period of 2023. We would like to point out that in 2023, the disbursement due to a transaction concluded with a customer following a commercial dispute in previous years was recorded in this line.
As regards trade working capital, in the first nine months of 2024 there was a positive change of Euro 2.4 million, net of the increase in inventories due to the seasonality of the Heating & Ventilation sector and the order backlog in Smart Gas Metering. The change in trade receivables and payables is consistent with the trend in business volumes for the period.
Investment flows amounted to Euro 11.8 million compared to Euro 16.6 million in the same period of 2023.
Cash flows from operations after investments are therefore positive and equal to Euro 3.6 million compared to Euro -22.3 million in the previous period.
Financial cash flows include interests of Euro 5.3 million during the period and changes in MTM and amortised cost for a total of Euro 4.5 million, mainly due to the recognition of the cost of the bank renegotiation in accordance with the criteria set in IFRS 9.
Significant events occurring after the end of the period
No significant events occurred after the end of the reporting period.
Outlook
Considering the market trend especially in Europe, the FY2024 sales of the Heating & Ventilation Division are expected to decrease low double digit compared to 2023.
For Metering, the outlook is confirmed, and the Division is expected to achieve sales in line FY 2023.
At consolidated level, the EBITDA margin should be slightly higher than previous year despite the reduction in sales volumes thanks to strict control of operating costs and efficiencies achieved through the production footprint.
Net financial debt is expected to be in line with previous outlook, between Euro 145 and 150 million.
***
Declaration of the manager responsible for the preparation of the Company’s accounts
The manager responsible for the preparation of the Company’s accounts, Paul Fogolin, hereby declares, as per article 154-bis, paragraph 2, of the “Testo Unico della Finanza”, that all information related to the Company’s accounts contained in this press release are fairly representing the accounts and the books of the Company. This press release and the results presentation for the period are available on the website www.sitcorporate.it in the Investor Relations section.
Today at 3:00PM CET, SIT’s management will hold a conference call to present to the financial community and the press the results for the period. You may participate through the following link:
The support documentation shall be published in the “Investor Relations” section on the company website (www.sitcorporate.it/en) before the conference call.
***
Annex 1
BALANCE SHEET
| (Euro.000) | 30/09/2024 | 31/12/2023 | |
| Goodwill | 70.946 | 70.946 | |
| Other intangible assets | 47.706 | 50.781 | |
| Property, plants and equipment | 97.883 | 105.270 | |
| Investments | 709 | 657 | |
| Non-current financial assets | 3.462 | 2.533 | |
| Deferred tax assets | 22.451 | 18.874 | |
| Non-current assets | 243.158 | 249.061 | |
| Inventories | 86.049 | 83.315 | |
| Trade receivables | 60.321 | 63.458 | |
| Other current assets | 14.386 | 14.264 | |
| Tax receivables | 3.843 | 3.752 | |
| DOther current assets | 4.751 | 6.630 | |
| Cash and Cash Equivalents | 7.453 | 8.700 | |
| Current assets | 176.804 | 180.119 | |
| Total assets | 419.962 | 429.181 | |
| Share capital | 96.162 | 96.162 | |
| Total Reserves | 36.021 | 70.350 | |
| Net Profit | (8.301) | (23.388) | |
| Minority interests net equity | 787 | – | |
| Shareholders’ Equity | 124.670 | 143.124 | |
| Medium/long-term loans and borrowings | 82.316 | 58.182 | |
| Other non-current financial liabilities and derivative financial instruments | 55.816 | 51.434 | |
| Provisions for risks and charges | 8.688 | 10.513 | |
| Post-employment benefit provision | 4.803 | 5.096 | |
| Other non-current liabilities | 5.231 | 6 | |
| Deferred tax liabilities | 11.752 | 12.094 | |
| Non-current liabilities | 168.607 | 137.325 | |
| Short-term bank loans | 21.215 | 50.809 | |
| Other current financial liabilities and derivative financial instruments | 11.857 | 8.596 | |
| Trade payables | 69.360 | 66.915 | |
| Other current liabilities | 21.943 | 20.768 | |
| Tax payables | 2.310 | 1.645 | |
| Current liabilities | 126.685 | 148.733 | |
| Total Liabilities | 295.292 | 286.057 | |
| Total Shareholders’ Equity and Liabilities | 419.962 | 429.181 |
Annex 2
INCOME STATEMENT
| (Euro.000) | 9M 2024 | 9M 2023 |
| Revenues from sales and services | 222.831 | 242.097 |
| Raw materials, ancillaries, consumables and goods | 120.331 | 133.308 |
| Change in inventories | (4.491) | (5.719) |
| Services | 33.185 | 34.909 |
| Personnel expense | 56.174 | 58.514 |
| Depreciation, amortisation and write-downs | 20.901 | 40.447 |
| Provisions | 250 | 463 |
| Other charges (income) | (2.044) | 383 |
| EBIT | (1.476) | (20.207) |
| Investment income/(charges) | – | – |
| Financial income | 311 | 543 |
| Financial charges | (9.233) | (5.696) |
| Net exchange gains (losses) | 243 | 510 |
| Impairments on financial assets | – | – |
| Profit before taxes | (10.154) | (24.850) |
| Income taxes | 1.854 | 5.471 |
| Net profit for the year | (8.301) | (19.379) |
| Minority interest result | (30) | – |
| Group net profit | (8.271) | (19.379) |
Annex 3
CASH FLOW STATEMENT
