PADOVA, Italy, 11 March 2020: CAREL achieved consolidated revenues of € 327.4 million in 2019, the Group said through a Press release. The figure represents a growth of 16.8% compared to 2018 figures, the release said. Excluding the contribution from the companies Hygromatik and Recuperator, the growth reached +5.1%, the release added.

In a nutshell:

• Consolidated revenues of € 327.4 million, growth of 16.8% compared to 2018
• Consolidated EBITDA of € 63.1 million (19.3% of revenues), +34.4% compared to 2018
• Consolidated net income of € 35.0 million, +14.2% over the net income in 2018
• Negative consolidated net financial position of € 62.1 million, substantially in line with € 59.1 million reported at 31 December 2018

Francesco Nalini, Group Chief Executive Officer, said: “In 2019 Carel reported a solid revenue growth of 16.8% (5.1% on a like for-like basis) and an EBITDA Margin of 19.3%. These results are even more significant in light of an unfavourable macroeconomic scenario, characterised by a slowdown in the European economy and trade tensions between the United States and China. Even in a non-optimal situation, therefore, the performances recorded are particularly positive and reflect the continuous implementation of our multi-year strategic guidelines, which in 2019 mainly consisted in: completing the plan to expand the Group’s production capacity, with a two-year investment of approximately EUR 20 million; the process of integrating the two companies acquired in 2018, Hygromatik and Recuperator, which allowed them to achieve a cumulative growth in revenues of around 10% compared to the previous year; and the signing of the first multi-year contracts for the supply of digital services to important international supermarket chains. In addition, innovation was a focal point, with investments in Research and Development of approximately 18 million (+12.6% compared to 2018) and the constant commitment to search for increasingly sustainable solutions from an environmental point of view. The same enthusiasm that guided us in 2019 will be fundamental to overcome the challenges that 2020 presents us, in particular the recent spread of Coronavirus/COVID-19, which we will face by exploiting the resilience of our recently expanded production footprint. ”

Revenues amounted to €327.4 million, compared to €280.2 million as of 31 December 2018, with a +16.8% percentage increase, the release said. All geographical areas (EMEA, Asia Pacific, North America and South America) and all segments (HVAC and Refrigeration) contributed to this performance, the release added. The strategy of diversifying the target markets, the strong push for cross-selling and consolidation of the customer portfolio and the continuous updating of the solutions proposed have proven effective even in a context of general market uncertainty, the release said. According to the release, the contribution from Hygromatik and Recuperator was approximately €32.7 million, a 10% overall growth in revenues compared to what achieved by these two companies in 2018.

The geographical area that recorded the greatest organic increase in percentage terms was North America, with a growth in revenues of around 20%, the release said. EMEA (Europe, Middle East, Africa) also reported double-digit growth thanks to the contribution of the newly-acquired companies mentioned above and despite the slowdown in the main economies of the Eurozone, the release said. Performance in APAC (Asia Pacific) was positive, with a growth of 8%, despite persistent volatility, mainly due to the introduction of duties on US/China trade, the release added. Finally, the release said that South America recorded growth of approximately 9.9%, driven mainly by the positive trend in Brazil.

When it comes to the individual business areas, the very high growth in HVAC once again benefitted from the effect of the inclusion of Hygromatik and Recuperator in the consolidation perimeter, while the performance recorded in the Refrigeration sector was mainly due to organic growth, the release said. In the second and third quarter of the year, the refrigeration sector reported a significant slow-down in its growth rate in Europe, this trend reversed in the last quarter of 2019.