Prim accelerates its growth with 21% revenue growth in the first half of the year
- The Company has a solid financial position that has allowed it to make extensive cash investments as well as implement new strategic investments
The Prim Group continues to accelerate its growth in the current financial year 2022. During the first half of the year, its consolidated turnover amounted to €99 million, which is 21% more than that from the same period in the previous year. These earnings include those from the companies incorporated into the group during the last twelve months, as well as non-recurring sales of Covid products. Even without taking those figures into consideration, turnover would have increased by 10%.
The gross margin from consolidated business stood at 47.8%, with there being a slight reduction as a result of lower margins on the aforementioned non-recurring products and certain companies recently incorporated into the portfolio. Without taking these effects into account, the margin would have been 49.6%.
Progress in the 21/25 Strategic Plan has had a marked effect on activity in the first half of the year. The Plan includes an ambitious objective for both organic growth and growth through acquisitions and has a proposed policy for selective and profitable investments, along with a plan to transform the organisation.
During the period in question, Prim has made intense investment efforts to guarantee both present and future growth. Specifically, the Company has increased its investments in operations, digitalisation and processes as well as its strategic investments, aimed at, among other purposes, the purchasing of assets that strengthen its market position or facilitate diversification into new lines of business.
The purchase of 100% of the company Laboratorios Herbitas and the acquisition of 20% of Aura Innovative Robotics are examples of this policy. Both transactions strengthen the Group’s position in the fields of robotics and podiatry.
At the same time, the company has strengthened its sales and marketing teams, following recovery after two years of restrictions during the pandemic, and it has also begun its transformation of organisational structures, to strengthen its sales and marketing, R+D+i, Digitalisation and Systems, Talent and Organisation, and Finance areas, among others. In terms of logistics, the company has launched a Supply Reinforcement Plan to respond to the tense market situation.
However, EBITDA has been effected by this increase in commercial, personnel, company acquisitions and logistics expenses, especially in comparison to a period of highly reduced activity during the Covid pandemic, namely the first half of 2021. Nevertheless, sales expenses generally remain at levels similar to those recorded during the pre-pandemic period.
Taking all these factors into account, EBITDA for the first half of the year amounted to €11.9 million, 7.7% lower than in the same period of 2021, although in comparison, if we normalise the figures to make them comparable, EBITDA would stand at €14.2 million, which would be 10% more than for the same period of 2021.
Finally, consolidated net profit amounted to €6.8 million, 35.3% lower than in the same period of 2021. In this past financial year, the company recorded positive results thanks to favourable foreign exchange contracts and rates. Without taking the foregoing into account, profit would have been reduced by 17.5%.
During the first half of the year, Prim has continued to hold its solid financial position and positive cash flow, which have enabled it to make the investments – both organic and through the asset purchases – which are provisioned for in its Strategic Plan, without resorting to any external financing. The company has total liquidity of more than €27 million available to continue to progress and meet its growth and profitability targets.
In addition to the Supply Reinforcement Plan, the Prim Group has also adopted suitable management measures and is prepared to take on the complications of the unfavourable macro environment that awaits us, with rate hikes, high price volatility and huge instability in the supply markets. Based on the data currently available, the Company believes that none of these forecasted factors will affect its overall achievement of its strategic objectives for the 21-25 Plan.
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