Roxana Dobre
– May 27, 2021 11:57 PM
Positive financial results for Maschio Gaspardo Group! Present in Romania with a factory in Chisinau Cris which is the largest local producer of agricultural equipment, the group ended the financial year 2020 with growing financial results, despite the difficulties related to the pandemic. The Board of Directors also approved a new industrial development plan, which aims to advance the calendar of activities previously provided in the 2018-2022 plan and project the financial situation expected for the period 2020-2025.
Consolidated net profit doubled compared to 2019
The financial year 2020 was characterized by a strong recovery of margins, following the previous financial year, with a consolidated net profit of 8.9 million euros, up 50% compared to the 5.8 million euros recorded in 2019. These results were achieved due to the optimization of corporate processes and structures, in accordance with the strategic directives presented by the Group’s management.
A reorganization in this regard was also made by the reorganization in Romania, which consisted in the acquisition, on July 28, 2020, by the subsidiary Maschio Gaspardo Romania, of 51% of the shares of Maschio Aratri from third parties. The ownership of the remaining 49% was already owned by Maschio Gaspardo SpA This acquisition was made with a credit facility from EximBank, in a solid collaboration developed between the company and the bank in recent years.
EBITDA level increased by 28.2%
In a year marked by the difficulties caused by the pandemic, revenues amounted to 302.6 million euros, down 4%, in line with the agricultural machinery market, which suffered an international recession, especially in the countries outside the EU, which generates part of the Group’s turnover. However, the Group’s EBITDA level increased from EUR 32.2 million to EUR 39.7 million (an increase of 23%) during the year. The increase in EBIT was even more significant, with 28.2%, from 17.8 million to 22.8 million euros. Given the good performance of the economic results, the ROE (return on equity) index also maintained an upward trend, increasing from 9.82% to 10.87%.
Consolidated net debt decreased by 31.5 million euros (-21.2%) to 116.9 million euros on December 31, 2020, compared to 148.4 million euros at the end of the previous year. The trend of this figure confirms the important and constant ability to generate cash, which has led to the gradual reduction of consolidated debt by over 120 million euros over the last 7 years.
Confirming the solidity of the Group’s balance sheet and resources as a form of internal financing, Maschio Gaspardo ended 2020 with a consolidated net capital of 92.4 million euros: an increase of 28.4 million euros compared to 64 million euros in the previous year.
The main reorganization operations within the Group were the acquisition of 51% of the shares of Maschio Aratri SRL from third parties and the completion of the merger by incorporating Maschio Fienagione SpA into Maschio Gaspardo SpA. This has resulted in improved governance systems, further reduction of administrative costs and simplification of production and distribution flows.
Profitable activity in 2020 and production development in Romania
The Chisinau Cris factory of Maschio Gaspardo, the main producer of agricultural equipment in Romania, has been operating throughout 2020, with very good results, despite the pandemic, and with an ambitious investment program for the development of production, supported by EximBank. The turnover in 2020 was 44.1 million euros, with a net profit of 2.3 million euros and the production was about 3,000 units.
The collaboration between EximBank and Maschio Gaspardo began in 2017, when the bank supported the company in implementing the largest investment project worth approximately 10,000,000 euros, a project carried out through a state aid scheme provided by law. “The Romanian market has a growing need for technologically advanced equipment, a field in which we specialize. In addition, the factory near Arad allows us to be close to the markets of Eastern Europe, particularly Russia and Ukraine. A real partnership for development has emerged between Maschio Gaspardo and EximBank. EximBank has always proposed concrete and efficient solutions to support our development in the short and medium term. This allowed us to invest and make the right decisions, according to the needs of our company “, said Mirco Maschio, President of Maschio Gaspardo.
The investment projects carried out in 2020 by the Maschio Gaspardo factory in Romania, with the support of Exim Bank, aim at:
• Increasing production capacity, by diversifying production in the range of plows, with the help of increasing the credit line to approximately 2,000,000 euros.
• Expanding the production capacity, with an area of 5400 sqm and by purchasing new technological equipment necessary for the production flow such as: lathes, milling cutters, bending presses, sheet metal cutting equipment, welding robots and others. The total investment amounts to 3,500,000 euros, of which 2,000,000 euros represented a credit facility granted by EximBank, and the rest comes from own funds. The investment project is started and will be completed during 2021. Following the completion of the expansion of production capacity, the company will have to hire, to cope with the increase in production and to respond to new contracts for orders of 20 million euros per year .
Maschio Gaspardo Group management’s evaluations of the results for 2020
“2020 was a challenging year, in which we all had to deal with extraordinary situations. However, we have managed to work together to achieve important goals: the results we approve reward us and confirm that we are working in the right direction. Also, thanks to the positive results obtained this year, the Group has strengthened its position and we are ready to face the next stages of the industrial plan, in order to continue the development of our business abroad, with innovative products and a high technological level. , which best meets the needs of our customers, “said Mirco Maschio, President of Maschio Gaspardo.
“Thanks to the perseverance and dedication shown by the people who work with us, this year we managed to keep all our factories in Italy and abroad operational, while fully complying with the instructions provided by government authorities to prevent infections. This, together with the reduction in costs, has allowed us to maintain our commitments to banks, as set out in the business plan, despite a reduction in overall turnover. Therefore, we look to the future with optimism and will continue to strive to develop state-of-the-art products, ”said Andrea Maschio, vice president of Maschio Gaspardo and president of Maschio Holding.
“We are very pleased with the results – confirms Luigi De Puppi, General Manager of the Group. I came here due to the fact that I worked excellently in the team, which underlines the high potential of the Group ”.
The Maschio Gaspardo Group is a global player in the production of cultivation, sowing, fertilization, crop treatment, ecological maintenance and hay equipment. Founded in Campodarsego (PD) in 1964 by brothers Egidio and Giorgio Maschio, the Maschio Gaspardo Group has 2000 employees worldwide in 8 production units (of which 3 abroad – China, India and Romania) and in 13 commercial subsidiaries ( Italy, France, Spain, Germany, Poland, Ukraine, Turkey, Russia, North America, South Africa, China, India and Romania). Maschio Holding, majority shareholder, holds 50.1% of the share capital, Friulia Finanziaria FVG holds 26.2%, while the remaining 23.7% is controlled by Veneto Sviluppo SpA
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