Hera Group Board of Directors approves 1Q 2023 results
Hera Custom Facet Publish Date
Custom Facet
Category Facet
Hera Custom Facet Publish Date
Search Bar
Asset Publisher
The consolidated quarterly report at 31 March shows growth in the main operating-financial indicators, once again proving the financial solidity and strength of the Group’s multi-business model
Financial highlights
- Revenues at 5,628.9 million euro (+6.0%)
-
Ebitda* at 410.2 million euro (+9.4%)
-
Net profit attributable to shareholders* at 128.2 million euro (+0.7%)
-
Net debt at 3,777.6 million euro, down 11% compared to 31 December 2022, with net debt/Ebitda* at 2.84x
Business highlights
-
Good contribution to growth coming from all main businesses, the energy and environment sectors in particular
-
Further development of initiatives for the ecological transition and the circular economy through state-of-the-art plants and increasingly green services
-
Ongoing growth in the energy customer base, reaching almost 3.6 million
Today, the Board of Directors of the Hera Group, chaired by Cristian Fabbri, unanimously approved the consolidated results for the first quarter of 2023.
For the Hera Group, the first quarter closed with improved operating results and investments compared to one year earlier, even though the scenario still shows a considerable amount of uncertainty, with effects on the commodity prices and a slowdown in production and international trade. Both internal and external growth drivers in Hera’s multi-business portfolio enabled it to achieve an excellent operating and financial performance while pursuing the creation of value for all stakeholders.
Cristian Fabbri, Hera Group Executive Chairman:
“The first quarter of 2023 closed with increased operating results, supported by the positive performance of the free-market energy and waste management businesses. We have thus confirmed our ability to gain new market shares, to provide services that are favoured by customers, and effectively leverage upon our competitive advantages in all our activities. The significant positive cash flow over the first quarter allowed us to reduce our debt and significantly improve the net debt/Ebitda ratio, which now stands at 2.84x.”
Orazio Iacono, Hera Group CEO:
“The positive operating cash flow of Q1 was able to fully cover a significant increase both in capital expenditures and investments which mainly concerned strengthening the infrastructures and plants managed, to the benefit of the quality of services provided to the customers as well as the resilience of our infrastructures and plants. We also strengthened and optimised our debt structure, thanks to the recent issue of a sustainability-linked bond worth 600 million euro and the simultaneous subscription of a 450 million euro sustainable revolving credit line. These are two additional milestones in sustainable finance and will lead us to allocate more than 1 billion euro in financing to green transition projects, to achieve the goals on the 2030 Agenda with concrete initiatives and respond to the challenges of a sustainable transition rooted in the social and industrial fabric. This operation, particularly appreciated by the market, guarantees additional financial flexibility.”
Revenues amounting to over 5.6 billion
In the first quarter of 2023, revenues amounted to 5,628.9 million euro, up 6% from the 5,312.0 million euro seen in the same period of 2022. The energy segments above all contributed to this result – mainly due to the higher volumes of electricity sold as a result of reinforced commercial initiatives and the safeguarded lots awarded last autumn – and the waste management area, partially due to acquisitions in the remediation and industrial waste treatment market.
Ebitda* rises to 410.2 million
Ebitda at 31 March 2023 rose to 410.2 million euro, +9.4% compared to 375.1 million euro in the first three months of 2022. This positive growth was mainly due to the overall contribution coming from the energy areas and the good performance of the waste management area.
Increased net operating result* and stable pre-tax result*
Ebit* at 31 March 2023 increased to 236.1 million euro, up 6.7% from 221.2 million euro in the first quarter of 2022. This performance was positive even after higher depreciation and amortisation due to the significant increase in investments and provisions for bad debts resulting from the increase in turnover, including last resort markets.
Net profit* rises to 140.3 million euro
Thanks to a tax rate coming to 26.8%, down from the previous year, net profit* rose to 140.3 million euro (+1.2%), as against 138.6 million euro in the first quarter of 2022. Net profit attributable to Group shareholders* settled at 128.2 million euro, up +0.7% from 127.3 million euro at 31 March 2022.
Sharp increase in operating investments and Group solidity reinforced
The Group’s capital expenditures, including capital grants, amounted to 155.7 million euro, up sharply (+20.5%) compared to 129.2 million euro at 31 March 2022, and mainly involved work on plants, networks and infrastructures. Regulatory upgrading, instead, mainly concerned gas distribution, with a large-scale meter replacement, and the purification and sewerage area.
For further information
Press release
Investors web area