Newlat Food Spa Posts 25% Jump in Q1 2024 Net Profit Despite Challenges

Newlat Food Spa, an Italian food company led by Chairman Angelo Mastrolia, has reported a 25% surge in consolidated net profit to EUR5.2 million for the first quarter of 2024, despite facing operational constraints. The company's revenues for the period stood at EUR199.6 million, a slight decrease from EUR207.3 million in the same quarter last year.

Why this matters: The resilience of Newlat Food Spa in the face of operational challenges and a volatile market environment is a positive sign for the Italian economy and the food industry as a whole. This strong financial performance could also have a ripple effect on investor confidence and job creation in the sector.

Despite the challenges, Newlat Food Spa demonstrated strong financial performance across key metrics. Adjusted EBITDA rose to EUR18.8 million from EUR18.2 million in Q1 2023, while EBIT increased to EUR8.5 million from EUR7.6 million in the previous year. The company also improved its net financial position, reducing its negative balance to EUR66 million from EUR74.3 million at the end of 2023.

Chairman Angelo Mastrolia expressed satisfaction with the results, stating, "We are very pleased with the results for the first quarter of the year, which confirm our ability to generate value through improved margins and cash generation. In a very volatile market environment and despite a particularly challenging comparison base, the first three months of 2024 saw the group confirm EUR200 million in revenues and raise its profile through improved profitability."

The company faced operational constraints due to modernization works at its Ozzano Taro plant, which affected the infant food and liquid preparation department. Mastrolia acknowledged that these constraints penalized revenue growth but emphasized that it is a temporary effect.

Looking ahead, Newlat Food Spa is confident that new investments will drive business development in Italy and abroad, particularly in the industrial know-how sector. The liquidity generated during the quarter has further reduced the company's net debt, enhancing its financial flexibility and paving the way for significant external growth opportunities.

Newlat Food Spa's first-quarter results demonstrate the company's resilience and ability to generate value despite a challenging market environment. With a focus on margin improvement, cash generation, and strategic investments, the company is well-positioned to capitalize on growth opportunities and strengthen its market position in the food industry.

Key Takeaways

• Newlat Food Spa's Q1 2024 profit surges 25% to €5.2 million.
• Revenues stand at €199.6 million, a slight decrease from Q1 2023.
• Adjusted EBITDA rises to €18.8 million, EBIT increases to €8.5 million.
• Net financial position improves, reducing negative balance to €66 million.
• Company confident in driving business growth through new investments.