LU-VE Group: in the first nine months of 2022 turnover grows by 30.5%

Date: 16 November 2022
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Turnover at the end of September was €467.7 million, up 30.5%, while the third quarter recorded a 14.3% increase in sales, closing with an order backlog of €196.4 million, up 27.6 percent from the corresponding period in 2021.

Both Business Units "Components" and "Cooling Systems" were confirmed to be growing again at the end of September by 36.1% (€266.8 million sales) and 21.6% (€189.9 million sales) respectively, despite the slowdown in demand in some application segments (particularly in products for the food retail trade and the household appliance market). On the other hand, the demand for heat exchangers for the heat pump market remains particularly buoyant, whose growth prospects in the months ahead remain extremely positive, although there is some uncertainty on the part of manufacturers as to whether they will be able to cope with the soaring demand on the one hand due to the difficulties in finding electronic components on the market and on the other hand due to the shortage of qualified personnel for field installation. The analysis of sales by applications highlights the strong growth in air conditioning attributable not only to the segment related to heat pumps (+159%), but also the good performance in both the world of chillers and applications related to datacentres. Finally, a special mention for the refrigerated transport segment (+52%) thanks to the acquisition of new projects combined with the growth in overall demand.

Geographically in the face of the inevitable sharp contraction (over 30%) in sales in Russia, Ukraine, and Belarus (4.2% of total sales) all other geographical areas show significant growth with the American continent almost doubling the value of sales in the first nine months of the year. Italy, up more than 37%, accounts for just over 20% of total sales.

The value of the order book at the end of September makes it possible to imagine a performance in the fourth quarter of 2022 substantially in line with the trend for the year despite the already commented on slowdowns in some application segments mainly due to geopolitical uncertainty and inflation issues. The usual means of transferring cost changes to selling prices make the goal of defending average margins reasonable in the latter part of the year as well. Tension on electronic component supplies continues, although the diversification of supply sources, the production flexibility achieved, and the use of increased safety stocks have allowed and will allow for important mitigation of the impact on production capacity. The Group closely monitors the progress of the crisis between Russia and Ukraine. The important geographical diversification of sales means that as of September 30, 2022, the Group's exposure in this area was approximately 4.2 percent in terms of sales and 3.1 percent in terms of order backlog. In October, Eurovent certification was obtained for carbon dioxide gas coolers.

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