THE BOARD OF DIRECTORS OF RACING FORCE S.P.A. APPROVED THE CONSOLIDATED HALF-YEAR FINANCIAL STATEMENTS AS OF JUNE 30, 2023
- Revenues: €37.2 million (+10.8% vs 1H 2022)
- Gross Profit: €23.0 million (61.8% Gross margin) vs €21.1 million in 1H 2022
- EBITDA: €7.9 million (21.3% EBITDA margin) vs €9.3 million in 1H 2022
- Net Income: €4.9 million (13.1% on Revenues) vs €6.9 million in 1H 2022
- Net Financial Position: +€0.3 million vs -€4.4 million as of December 2022
Ronco Scrivia (GE, Italy), September 20, 2023 - The Board of Directors of Racing Force S.p.A. ("Company" or "RFG"), the parent company of Racing Force Group, which is specialized in the development, production and marketing of safety components for motorsports competitions worldwide, as well as listed on the Euronext Growth Milan and Paris segments, reviewed and approved the consolidated half-yearly financial statements as of June 30, 2023, prepared in accordance with the Euronext Growth Milan and Paris Issuers' Regulations.
Paolo Delprato, Chairman and CEO of Racing Force Group, commented: "The results of the first half of 2023 were achieved in a complex macroeconomic scenario, characterized by strong uncertainty, within a year that represents a period of investments for the Group, in view of a significant boost to growth expected in the coming years, also benefitting from the diversification projects currently underway. In particular, in the first six months of the year, the Group has already made significant investments to further strengthen its organizational structure and to increase production and logistics capacity, with the aim to be ready for the developments expected in the near future".
Summary of Group Results as of June 30, 2023
- Group's Revenues amounted to €37.2 million, up compared to the first half of 2022 (+10.8%).
The increase characterized particularly the geographical areas of EMEA (+15.8%) and APAC (+9.6%), while the Americas recorded a slight decline (-0.5%), mainly due to a one-off supply carried out during the previous year. Excluding this one-off supply, growth would have been double digit. Dealers are confirmed as the primary sales channel for the Group (62.4% of revenues), while Driver's Equipment represents the main category in terms of product type (72.1% of revenues).
- EBITDA amounted to €7.9 million (EBITDA margin 21.3%), against €9.3 million in the first half of 2022 (EBITDA margin 27.8%). Variance is mainly due to higher costs incurred in the first six months of 2023 to support growth in Motorsport and, particularly, the investments and diversification projects currently being implemented.
- EBIT was €6.4 million (17.1% EBIT margin), against €8.1 million (24.1% EBIT margin) in the first half of 2022.
- Net income is €4.9 million (13.1% of Revenues), against €6.9 million (20.7% of Revenues) in the first half of 2022.
- The Group's Net Financial Position passed from a net debt of €4.4 million at the end of 2022, to a positive balance of €0.3 million as of June 30, 2023, also thanks to the share capital increase completed in January 2023, in addition to the cash generated during the period from operations, net of the investments in the first half of the year.
Performance Analysis
During the first months of the year, the global economy suffered a deceleration due to the high rate of inflation and restrictions in financing conditions. In this context, characterized by strong uncertainty, the Group recorded a growth in sales of +10.8% compared to the first half of 2022, strengthening its leadership in motorsport, thanks to the continuous research for innovation combined with the offer of new products, the constant improvement of existing ones and the completeness of the range offered.
The increase in revenues during the half-year particularly affected the segments of racewear, driven by higher sales of suits, communication systems and non-technical apparel.
Gross profit recorded an increase in absolute value of €1.9 million compared to the first half of 2022. In percentage terms, there was a slight decrease, equal to 0.9%, due to the different composition of the product mix and higher incidence of raw materials costs.
In the first six months of the financial year, the Group made significant investments to support growth within motorsport and, particularly to implement the diversification projects currently underway. General and administrative expenses, specifically, recorded an increase of €1.8 million compared to the first half of 2022, mainly due to the higher number of employees within the Group (+89 units employed on average in the first six months of 2023 compared to the first half of 2022). This increase was necessary in order to timely set up the proper organizationalstructure and production capacity, required to support both the activities within Motorport and the diversification projects.
The current capital structure is such as to allow investments in the coming future to further support the Group's growth plan, both within motorsport and as regards the diversification projects.
Current trading
Sales in the first two months of the second half of 2023 show significant growth compared to the already particularly positive figures of last year.
Contributing to the growth in turnover, albeit in a limited way, is the start of the first deliveries of the carbon shells for the jet pilot helmet (Next Generation Fixed-Wing Helmet) in August, in line with the Group's plans.
In the second half of the year, a higher dilution of structural costs is expected, with a positive impact on marginality, compared to the second half of 2022.
Presentation of the results
The results for the half-year ended June 30, 2023 will be presented to analysts and investors on September 21, 2023 at 10:00 a.m. (CET), through Microsoft Teams platform, using the following link:
Microsoft Teams Meeting
Click here to join the meeting
Meeting ID: 326 418 185 859 Passcode: HsPpwP
The presentation supporting the conference call will be made available on the Company's website www.racingforce.com in the «Investor Relations» section at the following link: https://ir.racingforce.com/en/presentations.
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