Esprinet Board of Directors approved the Interim Report at 31 March 2020, from which it emerges that revenues from contracts with customers amounted to 913.8 million euros, +4% compared to 875.5 million euros in the first quarter of 2019, of which
The Esprinet Group has a more favourable trend for Spanish activities (+6%) than Italians (+3%). Sales on Portuguese territory have been 45% performance, rewarding investments in marketing and strengthening local presence.
The analysis of revenues by product line shows an increase in Consumer Electronics segment (€279.6 million, +21%), driven by the growth of +31% for Smartphones.
The IT Clients segment shows substantial stability (€486,6 million) due to a substantial re-mix between PC (+5%) and Printers and Consumers (-5%).
The Gross Commercial Margin is 42.3 million euros and shows an increase of +3% compared to the first quarter 2019 (41.0 million euros) due to the greater revenues with substantial margin parity percentage (4.63% versus 4.68%) and despite the diluting effect linked to the
Lupin EBIT is EUR 8.3 million and shows a strong increase compared to the first quarter of 2019 (+24%), due to the effect of operating leverage on larger volumes and also thanks to the reduction of operating costs (- 1%) and despite Cely’s negative differential contribution
The profit before taxes, of 5.9 million euros, shows an improvement of +40% and benefits from the reduction of the bank’s interest liabilities of 0,7 million euros due both to the lower use of the banking lines and to the lower cost of the gross debt.
Net profit of EUR 3.9 million recorded a 34% increase (EUR 2.9 million in the first quarter of 2019).
The financial and capital indicators confirm the Group’s solidity.
Alessandro Cattani, CEO of Esprinet, in a note underlines that over the growth of revenues of 4%, the main performance indicators mark a decisive improvement. Since the beginning of the emergency Covid-19 the absolute priority has been to protect the health of our people in order to guarantee continuity to the chain of IT, essential and strategic for the functioning of the countries in which we operate. Moreover, in March it showed a difficulty in supplying suppliers most dependent on establishments established in China and South Korea, which were strongly impacted by restrictive measures taken by their respective governments.
How did Esprinet go in the Covid-19 emergency?
As stated in the note accompanying the quarterly budget, following the end of the quarter, the Covid-19 emergency continued and the adoption by European governments of increasingly restrictive measures in relation to the movement of persons and the blocking of commercial and productive activities.
In order to address this emergency, Esprinet has set up a task force which, in the light of the measures gradually adopted by the competent authorities, taking into account the Group’s membership in the technology chain considered essential, has constantly promoted and verified the adoption of preventive measures to
The Group has activated business continuity plans through the extension of smartworking to 100% of the business population not operating in warehouses. The measures for the protection and health protection of workers listed in the Enterprise-Sindacs Protocol, with reference to employees operating in central logistics and cash &carry teaching…………………
During the lockdown period, the Group continued to operate thanks to the activation of the necessary business continuity facilities and to compliance with health protocols aimed at preserving the health and safety of employees and collaborators. The chain to which the Group belongs, that of the production, distribution and marketing of ICT in Italy and Spain, has not been interrupted.
A difficulty in supplying suppliers most dependent on establishments in China and South Korea was experienced in the two months of March-April, which were strongly impacted by the initial restrictive measures adopted there.
This situation is in the process of normalization and for the month of May the expectations are for a return practically to full regime of production lines with some residual criticalities for notebooks and for some consumer electronics products.
On the demand side, the analysts’ consent is not yet stable enough. The estimates of the contraction of GDP in the second quarter in the countries where the Group is present (Italy, Spain and Portugal) credit a • 8/10% together with a recovery
The favourable trend of the first quarter of 2020 says little about the trends of the coming months, having matured over a time horizon only partially affected by the explosion of the pandemic emergency.
In this regard it is significant the trend of the revenues of April that recorded a decrease of -19% (-2% in Italy and -15% in Spain) partly due to the lack of product especially in the area to greater demand of the devices for
The signals coming from the market seem to accredit a period of difficulty for the Advanced Solutions product segment, in particular the one relating to datacenter solutions, linked both to the prolonged closure of many large companies, and to the difficulties of the integrator systems and the
On the other hand, the continued growth of the cloud and software segment seems to be confirmed, also due to ongoing investments planned by government companies and institutions to ensure the remote operation of their activities.
In April the IT Reseller channel showed good resilience also favored by the many smartworking projects activated by companies and government agencies, while the physical retailers channel suffered a real collapse of volumes due to the long
In light of all this, Esprinet reserves the right to provide updates on the evolution of management as soon as the appropriate visibility conditions for the elaboration of more accurate estimates of the impact of the Covid-19 emergency will be verified.
In the light of the depressive effect on the growth rates of the economies in Italy and Spain and the negative impact on the Group’s volumes of activities, the Group has developed and implemented a series of measures aimed at mitigating the financial impact of Covid-19, based on
With reference to the latter, it was decided not to propose any distribution of dividends 2020 and not to bear any other charges for the repurchase of own shares, also subjecting to the shareholders’ meeting on 25 May the revocation of the buy-back plan approved in 2019.
Thanks to the results of these initiatives, the Group believes it can contain the effects of the expected contraction in the volume of activity for the current year.
Moreover, when the emerging scenario will give way to a more favourable macroeconomic environment, the Group will be able to leverage its strong competitive position and the solidity of its economic and financial fundamentals to continue the path of organic development and value creation in the medium term.
For Esprinet, the fundamentals of the distribution sector continue to be robust and, indeed, expectations in the medium-term have credited an ever-increasing role of distribution in the ICT chain and an increasing use of the indirect channel.
Finally, the Group considers that the current emergency phase, combined with a historic drive from the distribution sector towards increasing consolidation, may lead some medium-small operators to accelerate the generational transition processes and that the Group may be in a privileged position to seize the opportunities that