Egm x-rayed: Magis adhesives report net profit up 5.6 per cent
The Tuscan company produces fastening systems for nappies for the elderly and children. Active on ESG: has photovoltaic plants and also produces adhesives from used cooking oil
5' min read
Key points
5' min read
There is a sector in which Italy is a leader, expected to grow until 2033 (expected cagr of 5.81%) and in which the outlet market is predominantly European (and therefore less subject to turbulence over US tariffs). It is not fashion, it is not luxury, it is not food: it is the adhesives and sealants sector in which Magis operates, at Euronext Growth Milan from 22 December 2022.
The numbers
.The company, based in Cerreto Guidi (Florence), operates mainly in the production of customised adhesive tapes and closure systems for body care for the elderly and children (nappies and nappies). It is not a 'glamorous' business, but it is quiet and allows it to achieve good profitability especially in products with higher added value (body care closures) and to generate cash. And so in 2024 Magis showed substantially stable revenues (+0.3% to 81.6 million), ebitda up 1.5% to 15.2 million (adjusted ebitda up 3% to 16.8 million due to the effects of Ifrs 16, i.e. leasing), ebit up 1.1% to 12.1 million, and net profit up 5.6% to 8.7 million, thanks mainly to net financial charges down from 987,000 to 488,000 euros.
Magis held net cash of EUR 14.7 million as at 31.12.2024, up sharply from EUR 5.8 million thanks to an operating cash flow of EUR 8.9 million. As a result, it distributed its first dividend since listing to shareholders, amounting to EUR 0.92 per share, for a dividend payout of around EUR 5 million, corresponding to a pay-out of 57.7%.
34.2% of 2024 revenues were realised in Italy, 14.1% in France, 9.6% in Germany and 7.6% in the United Kingdom; it is therefore a company focused on the European markets, also because for these types of product the incidences of transport costs are high compared to the unit value of the articles. Magis, however, is not resting on its laurels and, although it is currently the only company in Italy to produce the mechanical closures for body care called "Frontal Tape" and "Side Tape" (these products, under the "Tigil" brand, are sold to multinationals in the nappy sector and are responsible for most of the 34.5% of sales destined for non-European markets), it has planned investments of 6.5 million euros to be covered partly with its own financial resources (which it clearly has) and partly with special financing and/or calls for tenders.
Investment in new plants and a strong focus on sustainability
In 2024, investments amounted to almost EUR 5.1 million, of which 3 million in plant and machinery, including a new laminating machine in the mechanical fastener department for nappies, and a new photovoltaic system was completed and put into production in addition to the existing one, which covers 9% of the total energy demand, and in any case all the energy consumed, thanks to a specific contract signed with Sorgenia, comes from renewable sources.
