PRIM increases recurring sales by 13% with an improvement of more than 18% in its margins

The Prim Group closed the first quarter of this year 2022 with an increase of 13% in its recurring or comparable turnover to the previous year. This revenue does not include the €5 million in sales generated from the companies acquired after the second quarter of 2021 or other sales figures related to covid tests. If we consider these non-comparable revenues, the Group’s turnover amounts to €47.5 million, 27.7% more than in the same period of 2021.

The gross operating margin reached €22.4 million, 18.6% more than during the same period of the previous year. EBITDA was close to €5.5 million, with an increase of 2.6% in reported terms and an improvement of 17% in pro forma terms, not including any non-trading expenses incurred by acquisitions or commercial expenses that were not made in 2021 as a result of the Covid lockdowns.

Operating profit from recurring business grew by 14% during the first quarter of the year. In reported terms, taking into account the non-trading profits, operating profit decreased by 6.8% to more than €3.5 million.

Overall, recurring net profit amounted to more than €3.1 million, an increase of 2.4%. This figure does not include the impact of those financial derivatives that contributed to an extraordinarily positive accounting adjustment of €4 million for the financial profits of the first quarter of 2021. If we do consider this factor, in reported terms, profit is 47% lower.

During the first quarter of the year, Prim stuck to its policy of combining solid organic growth with selective asset purchases and the reinforcement of the organisation and its operational processes, in accordance with the Strategic Plan for the 2021/2025 period. The Company’s financial strength meant that it was able to make the acquisition of Laboratorios Herbitas in cash, as well as the investment made into the development of the company Aura Robotics and the distribution of the second dividend for the 2021 financial year. Similarly, the Group has allocated cash funds to strengthen inventories and to mitigate any current international logistical tensions.

Following the conclusion of the first treasury share buyback plan in January, the Company launched its second buyback plan in March. This programme has already reached 20 per cent of the projected rate.

These buyback programmes have been coupled with the successful execution of the Strategic Plan to have a positive influence on the share price, which has remained high during the first quarter, despite the negative impact caused by both the invasion of Ukraine and the new rates that have been seen on the financial markets.

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