Ovs, favourable weather boosts sales prospects in 2025

Ovs closes 2024 with revenues up 6.2% to EUR 1.63 billion and a trading margin rising to 58.2%, up 90 basis points year-on-year. The company expects higher sales and Ebitda growth in 2025 and also sees a positive driver in the strengthening of the euro against the dollar. The combination of higher sales and better margin led to a 7.2% increase in EBITDA to EUR 195.3 million, while EBIT rose 8.3% to EUR 129 million. Net profit also increased by 2.6% to EUR 77.9 million. Cash generation for the year amounted to EUR 68.6 million, for a total of approximately EUR 200 million over the last three years. 'Cash generation was up by 7% compared to 2023,' said CEO Stefano Beraldo. The year also saw investments of EUR 95 million, including about EUR 15 million for the completion of some technological innovation projects. In particular, the plant for the reuse of garments in view of the circular economy in Puglia has been activated, and the installation of the new smart tills, which allow for more streamlined and interconnected shop operations, has been completed.

As of 31 January 2025, the group's net financial debt, adjusted for the mark-to-market impact of hedging instruments and the impact of the application of Ifrs 16, was EUR 148.3 million. The board of directors resolved to propose to the shareholders' meeting the payment of a dividend for the financial year 2024, amounting to EUR 0.11 per share (+57%). Furthermore, it approved the continuation of the current buyback plan for an additional EUR 10 million. Looking ahead, the company expects Ebitda to grow further in 2025, while in relation to duties on exports to the US, the absence of sales in the US market makes Ovs non-exposed. At the same time, the company specifies in a note, the duties imposed on Asian countries are leading to greater availability from suppliers to European customers, creating more favourable sourcing opportunities. The strengthening of the euro against the dollar,' he concludes, 'plays in our favour.

"The expected increase in sales as a result of product and network development projects, strengthened by the expectation of a meteorological normalisation compared to the anomaly of last year's May-June two-month period, is the main driver of the Ebitda growth forecast in 2025," Beraldo concludes, "despite the dragging of personnel cost increases linked to the renewal of the national contract, which will also impact the current financial year.The 2025 cash flow will benefit from the reduction in investments for the non-recurring part.