PRIM strengthens its growth rate with a 17% improvement in consolidated revenues

• The Board of Directors approves a second dividend of €0.11 per share being distributed for the 2022 financial year.

• The Company has designed a comprehensive ESG Strategic Plan, with an outlook towards 2025 to advance with its implementation of sustainable and responsible management for the environment, its people and good governance.

PRIM closed the 2022 financial year with an increase in its consolidated turnover of 17%, reaching revenues of €197 million. These improved figures were seen in the majority of the Group’s lines of business and are higher than the overall growth seen in its referential market, even only considering the sales from its constant portfolio, without accounting for the acquisitions made. If the latter is taken into account, revenues would have grown by 7%, compared to the 3%-4% seen in the market overall.

With this in mind, the group is on track to achieve one of the main strategic objectives of its Multi-Year Plan, which is to accelerate growth to consolidate its commercial leadership; increase its market share, expand, and improve profitability. The ultimate goal is to achieve a revenue figure of €300 million by 2025. To achieve this goal, PRIM has enhanced its organic growth and also implemented a selective acquisition policy, prioritising profitability in its purchases.

The acquisitions of Laboratorios Herbitas and 20% of Aura Innovative Robotics are fruits of this policy and have strengthened the Group’s position in the fields of podiatry and robotics. It has also acquired Teyder and the Italian company Easytech, which have helped to expand the Company’s geographical diversification.

The gross margin of the consolidated business remained above the 47% seen in the first half of the year. This percentage is slightly lower than the 49.4% from the previous year, but it can be attributed to the investments made to strengthen the structure, systems and operational processes, as well as a focus being made on the diversification strategy to enhances the manufacturing and distribution businesses of its own products, with greater potential for growth and geographical expansion, in addition to non-recurring factors.

During 2022, PRIM has invested in the future to advance with the fulfilment of its 2021/2025 Strategic Plan. In addition to incorporating new talent from acquired companies, the Group has strengthened its geographical and commercial structure to attract new clients in different Spanish Autonomous Communities. It has also bolstered its marketing, R+D+i, Digitalisation and Systems, Talent and Organisation areas, among others. All this has led to an increase in commercial and personnel costs, which have resulted in a decrease in profits due to non-recurring effects.

At the end of last year, EBITDA stood at €17.7 million, a decrease of 27% compared to 2021, mainly due to the increase in personnel and the commercial expenses described above, as well as an increase in logistics expenses due to the implementation of a supply reinforcement plan in the face of a shortage of goods and increased prices. Consolidated net profit stood at €8.45 million, as a result of the sharp reduction of more than 72% in financial profits, which were positively influenced in 2021 by the favourable exchange rates. The appreciation of the dollar and its effect on the accounts has led to a 51% reduction in net profit. Without this non-recurring effect, profit would have fallen by 36%.

Overall, 2022 has been a key year for the implementation of many growth levers for the future of the PRIM Group. The Company’s solid financial position will allow it to take advantage of the business opportunities that will inevitably arise despite the economic turbulence of the current macro environment. However this will not prevent the company from maintaining its business projections and growth targets set out for this year 2023.

In the field of ESG policies, PRIM has designed a Master Plan that is aligned with the Group’s 21/25 Strategic Plan. It is based on five pillars and encompasses 14 strategic objectives. The programme, which will soon be approved by the Board of Directors, represents a clear commitment to the Company’s environmental, social and good governance management.

To set out its future plans, both in financial terms and in terms of ESG management, the Company is preparing to hold a second edition of its Shareholder and Investor Day in the upcoming months, following the positive reaction and feedback from last year’s edition.

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