(Alliance News) - Ariston Holding NV reported Tuesday that it ended the first quarter with revenues of EUR653.2 million, down 14 percent from EUR759.7 million in the same period last year.

Thermal Comfort revenues fell 14 percent to EUR611.3 million, Burners revenues fell 3.6 percent to EUR21.5 million, and Components revenues fell 14 percent to EUR20.4 million. On a geographic basis, Europe reported an 18% decline to EUR466.2 million, Americas reported a 4.1% increase to EUR70.6 million, and Asia/Pacific & MEA had a 4.5% decline to EUR116.4 million.

Ebitda was EUR56.8 million, down 42 percent from EUR97.3 million in the corresponding period of 2023, while Ebit was EUR22.6 million compared to EUR70.4 million in the first quarter of 2023.

On an adjusted basis, a measurement considered by the company to be most appropriate for assessing the performance of normal business operations, excluding unrepresentative costs or revenues, Ebitda fell to EUR58.3 million from EUR98.6 million and Ebit fell to EUR30.0 million from EUR73.1 million. The most significant adjustment in the period is related to the amortization of purchase price allocation related to some past acquisitions.

Free cash flow for the period was negative EUR50.5 million from negative EUR36.3 million in the first quarter of 2023. The reduction is mainly caused by a lower level of Ebitda generated by the business in the current adverse market conditions, partially offset by lower working capital absorption compared to the first quarter of 2023.

Net financial debt decreased from EUR610.9 million as of December 31, 2023 to EUR679.6 million as a result of negative free cash flow and the payment for the acquisition of the production plant in Egypt.

The new board then confirmed Paolo Merloni in the role of executive chairman and finalized the appointments of committee members.

Finally, following a decree signed by Vladimir Putin, the subsidiary Ariston Thermo Rus LLC was placed under the temporary management of JSC Gazprom Household Systems, a subsidiary of the Gazprom Group. On April 29, 2024, the Russian ambassador to Italy justified the decree by the Italian authorities' "anti-Russian geopolitical initiatives."

"As of today, the company is still assessing the implications of this initiative and exploring potential remedies or solutions. Ariston Thermo Rus LLC contributed about 3 percent of consolidated net sales in the first quarter of 2024," the company explained.

Ariston Holding's stock is up 0.4 percent at EUR5.12 per share.

By Giuseppe Fabio Ciccomascolo, Alliance News senior reporter

Comments and questions to redazione@alliancenews.com

Copyright 2024 Alliance News IS Italian Service Ltd. All rights reserved.