BREAKING NEWS – 26.07.2024

In the press release dated July 24, 2024, Marzocchi Pompe, a leading company in the design, production, and marketing of high-performance gear pumps and motors, approved the preliminary consolidated data for the first half of 2024. These data confirm the previously announced revenue decline for the first half of 2024, mainly due to the slowdown in the global industrial sector, with a particular impact on the automotive market. Consolidated net revenues for the first half of 2024 amount to €22.00 million, marking a 17.3% decrease compared to €26.6 million for the same period in 2023 and a 4.8% reduction compared to the second half of 2023. This decline is in line with the negative trend observed in the industrial sector. Specifically, sales in the automotive sector experienced a significant drop of 33.8%, falling from €5.30 million in the first half of 2023 to €3.50 million in the first half of 2024, mainly due to the contraction of the global market, which has inevitably affected Marzocchi Pompe’s revenues that had reached record levels in the past two years. The core business also recorded a decline in sales, albeit to a lesser extent, with a 13.1% decrease, reaching €18.5 million compared to €21.3 million in the first half of 2023, but with a slight increase of 1.2% compared to the second half of 2023. Geographically, the Italian market showed a slight growth, bringing sales to 29.0% of the total, while the export share remained stable at 71.0%, compared to 71.6% for the entire 2023. Regarding the company’s NFP, the figure increased to €7.00 million in debt, a 32.1% rise compared to €5.34 million in debt as of December 31, 2023, due to ongoing investments for expanding the production spaces at the Zola Predosa headquarters. As of June 30, 2023, debt amounted to €8.29 million. In conclusion, the negative performance in the first half of 2024 is in line with expectations, reflecting a general decline announced and conjunctural to Marzocchi Pompe’s reference market. The complex international situation, characterized by economic uncertainties and geopolitical tensions, has contributed to reducing demand in the reference markets, for which the automotive sector has been significantly impacted. However, the company has undertaken a series of strategic initiatives, including expanding production capacities and investing in new orders that will develop in the long term, to mitigate the effects of market contraction and prepare for future recovery. Despite the current difficulties, future prospects remain positive. A significant market recovery is expected, supported by Marzocchi Pompe’s ability to adapt to changing conditions and innovate its production and logistics processes. The company aims to consolidate its leadership position by offering personalized and innovative solutions, expanding geographic coverage, and strengthening customer relationships. Thanks to its financial solidity and constant ability to generate cash flows, Marzocchi Pompe is well-positioned to face future challenges and achieve new milestones. In light of the communicated information and positive prospects, we confirm our recommendation: Target Price €8.50, Rating BUY, and Risk MEDIUM.

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