Avio 2018 Results: Revenue, Net Profit and Cash Growth Continues
MILAN, March 15, 2019
– Revenues: Euro 388.7 million (+13% on 20171)
– Reported EBITDA: Euro 42.6 million (+8% on 20171)
– Reported EBIT: Euro 28.5 million (+14% on 20171)
– Net Profit: Euro 25.8 million (+18% on 20171)
– Backlog: Euro 877 million (-8% on December 31, 2017)
– Net Financial Position: cash position of Euro 49 million (+18% on December 31, 2017)
MILAN, March 15, 2019 /PRNewswire/ — The Board of Directors of Avio S.p.A. today reviewed and approved the statutory financial statements and presented the consolidated financial statements of Avio S.p.A. at December 31, 2018.
Avio, a leading aerospace enterprise listed on the STAR segment of the Italian Stock Exchange, reports revenues for 2018 of Euro 388.7 million – up 13% on the previous year and beating 2018 Guidance of Euro 345-365 million. The increase in revenues is mainly due to the advancement of Vega C and development activities on the new P120C motor.
Reported EBITDA of Euro 42.6 million grew 8% on the previous year, mainly due to lower non-recurring costs, as indicated by 2018 Guidance, better absorption of overheads and the research and development tax credit benefit.
The net profit of Euro 25.8 million was also significantly up (+18% on Euro 21.8 million in 2017), thanks to the improved EBITDA and the considerable reduction in financial charges (Euro 0.7 million against Euro 3.6 million in 2017) relating to the new Group debt structure, whose benefits became fully apparent in 2018.
The backlog of Euro 877 million at December 31, 2018 significantly outstripped Guidance indications (Euro 700-775 million) and benefitted from the bringing forward of some contracts initially scheduled for 2019. The main orders include the contract signed in February 2018 regarding the PC batch for the supply of solid propulsion engines for the last 10 Ariane 5 launches before the introduction of the new Ariane 6 launcher.
Net Financial Position improves to a cash position of Euro 49.1 million (compared to Euro 41.7 million at December 31, 2017), thanks to the contribution of cash from the improved operating performance, the contribution from the Research and Development tax credit and optimized capitalized expenses management, with the deferment of some investments to 2019, while keeping the main industrial and production milestones unchanged (Capex of Euro 22.9 million, compared to Euro 28.6 million in 2017). Dividends of Euro 0.38 per share were paid in May 2018 (approx. Euro 10 million in total).
The Board of Directors raised the payout ratio and dividend yield thresholds set out in the dividend policy in order to provide greater flexibility and in addition, on the basis of the results delivered, proposes to the Shareholders’ Meeting scheduled for April 29, 2019 to distribute a dividend of Euro 11.5 million (Euro 0.44 per share).
It is also proposed that the dividend is paid out from May 22, 2019, with coupon date (coupon No. 3) of May 20, 2019 and record date of May 21, 2019, in accordance with Article 83-terdecies of the CFA.
“2018 saw double-digit growth for the third year in a row and is considered a turning point for our company – stated Chief Executive Officer of Avio, Giulio Ranzo. Market dynamics, our advanced technology, sustained investments and robust financial position allow us to look forward with confidence to the next 4-5 years in which we can convert the major opportunities to boost our competitivity”.
2018 saw 6 successful Ariane 5 flights and 2 for Vega, which has now therefore delivered 13 consecutive successful launches (from the inaugural flight in 2012) – consolidating its world reliability record in terms of a new space launch product.
The presentation outlining the 2018 highlights will be made available in the Investor Relations section of the website www.avio.com to assist the call with financial analysts and investors scheduled for Friday, March 15 at 10.30 AM. The Annual Financial Report will be made available in Italian and in English in accordance with Law.
- Authorization to the stocks’ buyback
The Board of Directors decided to propose to the Shareholder Meeting the stock buyback for a maximum possible amount of 10% of the Share Capital (around Euro 9 million) for a 18 months time span for a unit price not lower than 10% and not higher than 10% reference price as derived from the reference price observed on the STAR segment of the Italian Stock Exchange the day preceding every operation. More detailed information will be available in the Directors’ relation which will be published within the appropriate law terms.
Avio is a leading international group engaged in the construction and development of space launchers and solid and liquid propulsion systems for space travel. The experience and know-how built up over more than 50 years puts Avio at the cutting-edge of the space launcher sector, solid, liquid and cryogenic propulsion and tactical propulsion. Avio operates in Italy, France and French Guyana with 5 facilities, employing approx. 900 highly-qualified personnel, of which approx. 30% involved in research and development. Avio is a prime contractor for the Vega programme and a sub-contractor for the Ariane programme, both financed by the European Space Agency (“ESA”), placing Italy among the limited number of countries capable of producing a complete spacecraft.
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1 In view of the corporate transaction of April 10, 2017 resulting in the company’s stock market listing, the 2017 figures are “pro-forma” i.e. referring to the twelve months of financial year 2017 and including the results of the Avio Group for the first quarter of 2017 pre-corporate transaction.