Research | 10 November 2023 00:00
Original-Research: Zignago Vetro S.p.A. – from GBC AG
Classification of GBC AG to Zignago Vetro S.p.A.
Company Name: Zignago Vetro S.p.A.
ISIN: IT0004171440
Reason for the research: GBC Italian Champions
Recommendation: BUY
Target price: 25.00 EUR
Last rating change: -
Analyst: Matthias Greiffenberger, E. Geßwein
„Highly profitable glass specialist made in Italy“ Cost efficiency and margin improvement: Zignago Vetro’s path to success
Zignano Vetro is part of Zignano Holding S.p.A., a group of companies based in Italy, which includes companies from the wine trade, fashion and renewable-energy sectors. Within the group, Zignano Vetro covers the glass-container sector, with a special focus on the beverage and cosmetics industries. For its part, Zignano Vetro has built up a portfolio of companies in Italy, Poland, France and the USA that have a similar product range and thus a similar industry focus. The majority of the Group’s turnover is generated in Italy, mainly with the production of glass containers for the food and beverage industry. In markets outside Italy, on the other hand, the company has a high market share in glass containers for the cosmetics and perfume industry as well as in special glass (e.g. individual glass bottles).
A look at the long-term development of the key operating figures shows that the group has been on a growth path for several years in terms of both turnover and earnings. Between 2016 and 2022, turnover roughly doubled from € 322.87 million to € 640.79 million. During the same period, the EBITDA margin was always between 25.1% and 28.1% and also doubled in line with the growth in turnover from € 80.92 million to € 162.17 million.
However, the company developed particularly dynamically in the past financial year 2022, which was characterised by a 30.0% increase in turnover and a 24.5% increase in
EBITDA. This development was almost exclusively of an organic nature and can be attributed in particular to the implementation of higher price levels with the company’s customers. Overall, demand from customer industries was high, but this was offset by a supply side characterised by difficulties. Plant closures as a result of the war in Ukraine and cost increases (material, energy) were decisive factors. Zignano Vetro was able to maintain its ability to deliver and has grown in this market environment.
After their excellent performance in the 2022 financial year, the high market demand continued in the first half of 2023, with a normalisation observed in the second quarter of 2023. Demand in the global cosmetics and fragrance markets also developed strongly. Revenues increased by 28.4% to € 384.76 million (previous year: € 299.63 million), showing an unchanged growth rate compared to the 2022 financial year. EBITDA was even 87.8% higher than the previous year’s figure at € 120.36 million (previous year: € 64.1 million) due to a declining cost-of-materials ratio.
The company expects the market environment to remain positive. On the one hand, this is due to the fact that the trade must replenish its stocks. On the other hand, the market for cosmetics and perfume containers is expected to remain dynamic, with sustained demand, especially in the premium and branded product segments. This target is accompanied by a gradual normalisation of costs for most production factors, especially energy and material costs.
Based on our estimates, we have identified a target price of € 25.00. In view of the considerable upside potential, we rate the share as BUY.
Die vollständige Analyse können Sie hier downloaden:
http://www.more-ir.de/d/28209.pdf
Kontakt für Rückfragen
GBC AG
Halderstraße 27
86150 Augsburg
0821⁄241133 0
research@gbc-ag.de
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Disclosure of potential conflicts of interest in accordance with Section 85 WpHG and Art. 20 MAR The following potential conflict of interest exists at the company analysed above: see individual studies; a catalogue of potential conflicts of interest can be found at:
https://www.gbc-ag.de/de/Offenlegung
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Editorial deadline: 06.11.2023
Date and time of completion of the research report (german version): 09.11.2023 (08:13 am)
Date and time of the first disclosure of the research report (german version): 09.11.2023 (10:00 am)
Date and time of completion of the research report (english version): 09.11.2023 (8:07 pm)
Date and time of the first disclosure of the research report (english version): 10.11.2023 (10:30 am)
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