The consolidated half-year report at 30 June shows growth in all main operating-financial indicators, confirming Hera’s financial solidity and once again demonstrating the effectiveness of the choices made by management
Financial highlights
- Ebitda at 718.3 million euro (+13.8%)
- Net profit attributable to shareholders at 187.7 million euro (+2.4%)
- Overall investments rise to 403.4 million euro (+22.4%)
- Net debt at 4,145.7 million euro, down by 104.1 million euro compared to the 31/12/22 figure, with net debt/Ebitda ratio at 3x
Business highlights
- Significant contribution to growth from the energy sectors, the waste management area and the water business
- Ongoing growth in the energy customer base, which rose to over 3.7 million, up 7.9% in 12 months
- Further development of initiatives for the energy transition and the circular economy, thanks to state-of-the-art plants and increasingly green services
The Board of Directors of the Hera Group, chaired by Cristian Fabbri, unanimously approved the consolidated results for the first half of 2023.
The first half of the year ended with operating results and investments up compared to the previous year, although in the first months of 2023 some of the served areas were affected by extreme weather phenomena and the uncertain global context continues to generate volatility in commodity prices, a generalised rise in inflation and an increase in the interest rates.
The consolidated half-year report at 30 June, indeed, shows positive operating and financial performances, demonstrating once again the Group’s financial solidity and strength of its business model, balanced between internal and external growth and between regulated and free market activities.
Cristian Fabbri, Executive Chairman of the Hera Group:
“The first half of 2023 closed with substantial growth in results, with Ebitda reaching 718.3 million euro, up 13.8%, mainly due to the overall contribution coming from the energy area, which also saw an increase in services for decarbonisation, while growth in the waste management area confirms our commitment to the circular economy. The results for this half-year see us moving rapidly towards achieving the goals set out in our Business Plan and are the fruit of our consolidated multi-business strategy, which has always been geared towards combining corporate growth with the sustainable development of the local ecosystem. This is additionally confirmed by the 22% rise in investments, both for developing the Group’s industrial assets and for M&As that focus on growth towards the ecological transition, innovation and resilience. Our business model is capable of continuously innovating while maintaining strong local roots, and has allowed us to once again respect the commitments made to our shareholders, to whom a dividend up by 4.2% was paid last month, consistent with what was announced during the presentation of the Business Plan to 2026.”
Orazio Iacono, CEO of the Hera Group:
“The consolidated half-year financial report at 30 June shows significant growth in Ebitda, with a contribution coming from all business areas, in particular the energy sector with 239 million euro (+30%) and the waste management area with 162.9 million euro (+8%), and increased investments and M&A transactions, amounting to over 400 million euro. All of this was made possible by a significant cash generation and a solid financial position. The financial structure was further reinforced during the first half of the year by sustainable sources of financing on favourable terms, including the issue of a sustainability-linked bond, a new revolving credit line and a recent EIB loan. These initiatives allowed us to maintain our net debt/Ebitda ratio at roughly 3x, in line with the previous half-year and the targets defined.”
Revenues at 8.3 billion
In the first half of 2023, revenues amounted to 8,297.5 million euro, as against 8,896.0 million euro at 30 June 2022, mainly due to the drop in energy commodity prices and lower volumes of gas sold, as a result of the mild weather in the first half of the year. Revenues related to the higher volumes of electricity sold, instead, were up, thanks to commercial development actions, Consip tenders and the lots awarded in the protected and gradual protection services, as well as higher revenues from energy services, in which opportunities related to energy efficiency incentives in residential buildings and increased activities in value-added services for customers remained. A positive contribution also came from revenues in the waste management sector, due to increased treatment activities and acquisitions in the industry market.
Ebitda rises to 718.3 million euro
Ebitda for the first half of 2023 rose to 718.3 million euro (+13.8%), compared to 631.2 million euro at 30 June 2022. This increase is mainly due to the overall contribution coming from the energy areas, amounting to 68.1 million euro, and the positive performance of the waste management area, up by 12.2 million euro.
Net operating result grows
The net operating result at 30 June 2023 rose to 374.7 million euro, up 11.9% compared to the 334.9 million euro seen one year earlier. This performance remained positive even after higher depreciation and amortisation, due to the significant increase in investments, and conservative provisions for bad debts, due to the increased turnover in last resort markets. Financial charges increased, mainly due to the medium- and long-term credit lines stipulated in 2022 and the significant change in the interest rate scenario, which saw a significant increase in the cost of money.
Net profit attributable to shareholders up to 187.7 million euro
Net profit rose to 208.0 million euro (+3.1%), compared to 201.7 million euro in the first half of 2022, with a tax rate coming to 26.8%. Net profit attributable to Group shareholders* totalled 187.7 million euro, up (+2.4%) from 183.3 million euro at 30 June 2022.
Strong growth in operating investments and Group solidity reinforced
In the first half of 2023, the Hera Group made investments and corporate acquisitions totalling 403.4 million euro (+22.4% compared to the same period in 2022). Operating investments, including capital grants, amounted to 318.4 million euro, up by 31.3 million euro compared to the previous year (+10.9%), and were mainly related to the development of plants, networks and infrastructures. In addition, regulatory upgrading mainly concerned gas distribution, with a large-scale meter replacement, and the purification and sewerage area.
| Income statement (mn€) |
Jun-23 | % inc. | Jun-22 | % inc. | Abs. change | % change |
|---|---|---|---|---|---|---|
|
Revenues |
8.297,5 |
|
8.896,03 |
|
-598,5 |
-6,7% |
|
Other operating revenues |
299,3 |
3,6% |
219,4 |
2,5% |
+79,9 |
+36,4% |
|
Raw and other materials |
(5.961,0) |
-71,8% |
(7.062,2) |
-79,4% |
-1.101,2 |
-15,6% |
|
Service costs |
(1.576,2) |
-19,0% |
(1.105,2) |
-12,4% |
+471,0 |
+42,6% |
|
Other operating expenses |
(41,5) |
-0,5% |
(39,3) |
-0,4% |
+2,2 |
+5,6% |
|
Personnel costs |
(330,4) |
-4,0% |
(308,7) |
-3,5% |
+21,7 |
+7,0% |
|
Capitalised costs |
30,6 |
0,4% |
31,2 |
0,4% |
-0,6 |
+1,9% |
|
Ebitda * |
718,3 |
8,7% |
631,2 |
7,1% |
+87,1 |
+13,8% |
|
Amortization, depreciation and provisions |
(343,6) |
-4,1% |
(296,3) |
-3,3% |
+47,3 |
+16,0% |
|
Ebit * |
374,7 |
4,5% |
334,9 |
3,8% |
+39,8 |
+11,9% |
|
Financial operations |
(90,5) |
-1,1% |
(50,9) |
-0,6% |
+39,6 |
+77,7% |
|
Pre-tax result * |
284,2 |
3,4% |
284,0 |
3,2% |
+0,2 |
+0,1% |
|
Taxes |
(76,2) |
-0,9% |
(82,3) |
-0,9% |
-6,1 |
-7,4% |
|
Net result * |
208,0 |
2,5% |
201,7 |
2,3% |
+6,3 |
+3,1% |
|
Attributable to: |
- |
|
|
|
- |
+ |
|
Shareholders of the Parent Company * |
187,7 |
2,3% |
193,3 |
2,1% |
+4,4 |
+2,4% |
|
Minority shareholders |
20,3 |
0,2% |
18,4 |
0,2% |
+1,9 |
+10,3% |
| Invested capital and sources of financing (mn€) | 30-giu-23 | Inc.% | 31-dic-22 | Inc.% | Var. Ass. | Var.% |
|---|---|---|---|---|---|---|
|
Net non-current assets* |
7791,2 |
100,7% |
7522,3 |
94,5% |
268,9 |
3,6% |
|
Net working capital* |
612,2 |
7,9% |
1096,0 |
13,8% |
(483,8) |
(44,1)% |
|
(Provisions) |
(668,1) |
(8,6)% |
(657,6) |
(8,3)% |
(10,5) |
1,6% |
|
Net invested capital* |
7.773,6 |
100,0% |
7960,7 |
100,0% |
(225,4) |
(2,8)% |
|
Equity* |
3589,6 |
46,4% |
3710,9 |
46,6% |
(121,3) |
(3,3)% |
|
Long-term borrowings |
5067,5 |
65,5% |
5598,5 |
70,3% |
(531,0) |
(9,5)% |
|
Net current financial debt |
(921,8) |
(11,9)% |
(1348,7) |
(16,9)% |
426,9 |
(31,7)% |
|
Net debt |
4145,7 |
53,6% |
4249,8 |
53,4% |
(104,1) |
(2,4)% |
|
Total sources of financing* |
7735,3 |
100,0% |
7960,7 |
100,0% |
225,4 |
(2,8)% |
* Adjusted results
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