• Turnover € 1.317 million
• EBITDA € 73 million
• Net result € 13.3 million
• NFP € 161.8 million 

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Bologna, 7 April 2020 - The Board of Directors of Granarolo S.p.A. which met on 31 March and was chaired by Gianpiero Calzolari, approved the draft financial statement to be submitted to the Shareholders' Meeting scheduled for 30 April on single call.

Consolidated revenues amounted to €1.317 million, up 1.2% on the previous year. Like-for-like revenues, net of exchange rate effect, were substantially unchanged (-0.4%), due to a deflationary effect on sales prices and the decrease in unit sales that characterized the Italian market in 2019. In 2019 the economic results of Venchiaredo (IT) and Kaserei Denklingen Gmbh (DE) were consolidated.
 
The Group's Gross Operating Margin (EBITDA), before the impact of the new IFRS 16, amounted to EUR 73 million, equal to 5.5% of revenues, down by EUR 3.4 million (-4.4%) versus 2018, but substantially in line with company forecasts. Net profit for the year amounted to EUR 13.3 million, down EUR 3.4 million on the previous year.
 
Product innovation currently accounts for 20% of the Group's turnover and refers to various milk-based products, on which the Group is now making significant investments both in terms of sales, in Italy and abroad, and infrastructure. In addition, Yomo yoghurt will deliver new flavour and packaging innovations to meet trends, taste, sustainability and convenience.

2019 Main consolidated results

Consolidated revenues from sales reached EUR 1.317 million, up 1.2% from 2018, for an overall increase of EUR 16 million. 
On an Italian market that was down by 3.1% on fresh milk volume (Source: IRI), the Company grew by 6.5% bucking the market trend, thanks to a recovery plan aimed at consumers who are increasingly aware of nutritional and environmental issues. The campaign to promote fresh milk in which Granlatte Granarolo chain farmers played a pivotal role was primarily focused on animal welfare in certified farms, sustainability of a transparent supply chain and price repositioning.
 
 
The Group's sales have traditionally been concentrated in Italy (67.5% of revenues).
The results generated by internationalisation activities are very positive - with Granarolo international sales currently totalling EUR 429 million and accounting for 33% of turnover and 7.3% of domestic exports in the sector. In 2019, international markets recorded an increase in turnover by EUR 16 million, up 4%.  This result reflects the strong appreciation of Made in Italy products abroad.
 
 
Group EBITDA totalled EUR 73 million euros, equal to 5.5% of revenues, down by EUR 3.4 million (- 4.4%) compared to 2018.
 
EBIT stands at EUR 27.4 million euros, equal to 2.1% of sales revenues, a decrease of EUR 12 million compared to the previous year.
 
Net profit for the year amounted to EUR 13.3 million.
 
The Net Financial Position for 2019 totals EUR 161.8 million, an increase of EUR 15.3 million compared to 31 December 2018.
 
The Board of Directors has agreed to propose to the Shareholders' Meeting the payment of a dividend of EUR 12.5 million.
 
To ensure adequate comparability with operating data, the financial information and comparative analyses contained in this press release refer to data reported without applying IFRS 16.
 
 
“We have recorded satisfactory data in line with our expectations, the result of hard work in a challenging year during which we experienced raw material inflation and a downturn on our markets. We continued to pursue a business plan aimed at sustainability, consistent with the organizational improvements urged by the Group ownership. Our goal has been to support the Group at a time of rapid and profound change by refocusing on milk and our supply chain, partially rethinking the strategy of the recent past and investing significant resources in this area during the year, rewarded by a 2-point recovery in market share. We have worked on innovation of products, packaging and processes, consolidated our presence in many countries and closed our accounts with positive results in recent years. This will enable us to better face the unexpected future we are now confronted with. Our country will almost certainly experience a recession. It will be necessary to keep our productive fabric alive and active, especially the agro-food supply chain, in order to retain our position in the national and international value chain, and not to be excluded in the future when the world economy starts running again. The pandemic is confronting us with new challenges and we need to be ready to be the protagonists of change," commented Gianpiero Calzolari, the President of Granarolo.