The consolidated quarterly report at 31 March shows growth in revenues and Ebitda, proving the solidity and resilience of the Hera Group’s business model even in this difficult economic context
Financial highlights
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Revenues at 5,312 million euro (+133.8%)
-
Ebitda at 374.0 million euro (+3.3%)
-
Net profits at 137.8 million euro (-1.8%)
-
Net debt at 3,455.2 million euro, with net debt/Ebitda ratio at 2.8x
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Good contribution to growth comes from the main businesses, in particular the energy sectors and the waste management area
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Further development of initiatives for the ecological transition and the circular economy, thanks to state-of-the-art plants and increasingly green services
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Solid energy customer base, with approximately 3.5 million customers
The Hera Group’s Board of Directors, chaired by Tomaso Tommasi di Vignano, unanimously approved the consolidated results for the first quarter of 2022.
Despite the fact that the results for the first quarter of 2022 were achieved against the backdrop of an extraordinarily difficult international scenario, marked by energy market volatility and geopolitical conflicts, Hera’s management policies – based on its solid and resilient business model – proved to be effective and enabled it to show further growth in results. Following up on the indications contained in the Business Plan to 2025, the Group thus continues to create value for stakeholders while ensuring, at the same time, quality and continuity in services.
As regards regulated services, in November 2021 Atersir definitively awarded the Hera Group the tender for the concession of the integrated water service for 24 municipalities in the province of Rimini, including the capital, with a contract worth approximately 1.7 billion euro. The Hera Group, which was also the outgoing manager, will therefore be responsible for this service from 2022 to 2039. A few weeks later, lastly, Atersir definitively awarded the Hera Group, for a period of time covering 15 years, the tenders for the municipal waste collection services in the Modena and Bologna areas, with a total scope of 1.5 million inhabitants and a value coming to over 2.5 billion.
Revenues at roughly 5.3 billion euro (+133.8%)
In the first quarter of 2022, revenues amounted to 5,312.0 million euro, up sharply from 2,271.8 million euro seen in the same period one year earlier. The energy sectors in particular contributed to this result, showing significant growth due to increased trading and the rise in commodity prices, as well as higher volumes of gas sold as a result of new lots won in tenders and lower winter temperatures. In addition, growth in energy services was related to energy efficiency in residential buildings (insulation bonus and 110% tax super-bonus) and increased activities for value-added services for customers. Revenues from the waste management sector were also up, mainly due to energy production, higher prices in the recovery market and new acquisitions in the industrial market. Lastly, revenues from network services increased, both regulated and for third parties, as did revenues from the public lighting service.
Ebitda rises to 374.0 million euro (+3.3%)
Ebitda went from 362.0 million euro in the first three months of 2021 to 374.0 million euro at 31 March 2022, up 12.0 million euro (+3.3%). The main contributions to this result came from the energy area, up by a total of 6.1 million euro, and the waste management area, up 8.1 million euro, offsetting the slight drop in the other services area. In particular, the activities managed concerning the ecological transition and circular economy were decisive, including energy efficiency services developed for condominiums, a reinforcement of value-added services in the energy sector (from “green” supply, to sales and installation of LED devices, smart boilers and thermostats, and energy diagnostics) and the regeneration of resources, through Group subsidiary Aliplast.
Operating result and pre-tax profit down slightly
Operating results amounted to 220.1 million euro at 31 March 2022, down 1.3% from the 223.1 million euro seen in the first quarter of 2021, mainly due to higher amortisation and depreciation due to changes in the scope of consolidation and higher provisions for bad debts mainly attributable to both last resort and traditional markets as well as the graduated protection service. Financial operations at 31 March 2022 were mainly unchanged, at 29.5 million, compared to 28.8 million euro seen in the first quarter of 2021. This change was caused by lower income from late payment indemnities, partially offset by lower financial charges on long-term debt resulting from debt optimisations. Pre-tax profit amounted to 190.6 million euro, slightly down from 194.3 million euro at 31 March 2021 (-1.9%).
Net profit at 137.8 million euro
Thanks to a tax rate coming to 27.7%, quite similar to the 27.8% rate of the previous year, net profit stood at 137.8 million euro, as against 140.3 million euro in the first quarter of 2021. Profit pertaining to the Group’s shareholders amounted to 126.5 million euro, down from 132.2 million euro at 31 March 2021, due to an increase in the portion attributable to minority shareholders.
Strong growth in operating investments and Group solidity reinforced
The Group’s operating investments, including capital grants, amounted to 129.2 million euro, up 11.1% compared to the previous year, and mainly involved work on plants, networks and infrastructures. In addition, regulatory upgrading was carried out, mainly in the gas distribution sector with a large-scale meter replacement, and in the purification and sewerage sector.
Net financial debt went from 3,261.3 million euro at 31 December 2021 to 3,455.2 million euro at 31 March 2022, mainly due to a change in net working capital, which increased as a result of the energy scenario and the impact of interventions on “rising bills” also in terms of payment by instalments. The net debt/Ebitda ratio remained substantially stable, at 2.8x, confirming the company’s financial solidity.
| Profit & Loss (mln €) |
31/03/2022 | Inc.% | 31/03/2021 | Inc.% | Ch. | Ch.% |
|---|---|---|---|---|---|---|
|
Sales |
5,312.0 |
|
2,271.8 |
|
+3,040.2 |
+133.8% |
|
Other operating revenues |
100.7 |
1.9% |
100.7 |
4.4% |
+0.0 |
+0.0% |
|
Raw material |
(4,307.8) |
(81.1%) |
(1,209.7) |
(53.2%) |
+3,098.1 |
+256.1% |
|
Services costs |
(573.3) |
(10.8%) |
(646.9) |
(28.5%) |
(73.6) |
(11.4%) |
|
Other operating expenses |
(17.2) |
(0.3%) |
(17.1) |
(0.8%) |
+0.1 |
+0.6% |
|
Personnel costs |
(154.5) |
(2.9%) |
(150.1) |
(6.6%) |
+4.4 |
+2.9% |
|
Capitalisations |
14.1 |
0.3% |
13.3 |
0.6% |
+0.8 |
+6.0% |
|
Ebitda |
374.0 |
7.0% |
362.0 |
15.9% |
+12.0 |
+3.3% |
|
Depreciation and provisions |
(153.9) |
(2.9%) |
(138.9) |
(6.1%) |
+15.0 |
+10.8% |
|
Ebit |
220.1 |
4.1% |
223.1 |
9.8% |
(3.0) |
(1.3%) |
|
Financial inc./(exp.) |
(29.5) |
(0.6%) |
(28.8) |
(1.3%) |
+0.7 |
+2.4% |
|
Pre tax profit |
190.6 |
3.6% |
194.3 |
8.6% |
(3.7) |
(1.9%) |
|
Taxes |
(52.8) |
(1.0%) |
(54.0) |
(2.4%) |
(1.2) |
(2.2%) |
|
Net profit |
137.8 |
2.6% |
140.3 |
6.2% |
(2.5) |
(1.8%) |
|
Attributable to: |
||||||
|
Shareholders of the Parent Company |
126.5 |
2.4% |
132.2 |
5.8% |
(5.7) |
(4.3%) |
|
Minority shareholders |
11.3 |
0.2% |
8.1 |
0.4% |
+3.2 |
+39.3% |
| Balance Sheet (mln €) | 31/03/2022 | Inc.% | 31/12/2021 | Inc.% | Ch. | Ch.% |
|---|---|---|---|---|---|---|
|
Net fixed assets |
7,294.8 |
103.4% |
7,308.0 |
109.4% |
(13.2) |
(0.2%) |
|
Working capital |
398.9 |
5.6% |
3.5 |
0.1% |
+395.4 |
+11,297.1% |
|
(Provisions) |
(637.2) |
(9.0%) |
(633.4) |
(9.5%) |
(3.8) |
+0.6% |
|
Net invested capital
|
7,056.5 |
100.0% |
6,678.1 |
100.0% |
+378.4 |
+5.7% |
|
Net equity |
3,601.3 |
51.0% |
3,416.8 |
51.2% |
+184.5 |
+5.4% |
|
Long term net financial debt |
3,644.6 |
51.7% |
3,633.1 |
54.4% |
+11.5 |
+0.3% |
|
Short term net financial debt |
(189.4) |
(2.7%) |
(371.8) |
(5.6%) |
+182.4 |
(49.1%) |
|
Net financial debts |
3,455.2 |
49.0% |
3,261.3 |
48.8% |
+193.9 |
+5.9% |
|
Net invested capital
|
7,056.5 |
100.0% |
6,678.1 |
100.0% |
+378.4 |
+5.7% |
For further information
Press release
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