Sabaf S.p.A. is a company that produces components for household cooking appliances. Founded in 1949, today it has more than 650 employees and 5 manufacturing sites in Italy, Brazil, Turkey and China.
The production includes taps, thermostats and burners for gas appliances. In 2001 it took over Faringosi Hinges, an Italian company specialized in the production of hinges for household appliances.
The company invests about 3% of its annual turnover in research and development. The design and development of new products complies with the need to create increasingly safer components that permit to reduce atmospheric pollution and to save energy both during the production and the use by the final user.
Characterized by a strong vertical integration, the Company also manufactures the machinery necessary to produce and assemble its products, thus obtaining maximum optimization in both processes.
Sabaf has been listed on the Milan Stock Exchange
Sabaf totalled a revenue of €150.6 million, up by 0.3% over the same period of 2017 (-2.4% taking into consideration the same scope of consolidation). EBITDA was €30 million (or 19.9% of sales), down by 3.2%, EBIT totalled €16.4 million (or 10.9% of sales) down by 9.4%, and the net profit owned by the Group was €15.6 million, up by 5.3% compared to 2017. The tax rate in 2018 was 24.6%, compared to 16.2% in 2017.
During the fourth quarter of 2018, the worsening of the European and Middle Eastern macroeconomic scenario, only partially offset by the positive tone of the North American market, led to a slowdown in the Group’s sales: during the period, sales revenue totalled €36.2 million, 3.3% lower than the €37.4 million of the fourth quarter of 2017 (-11.7% taking into consideration the same scope of consolidation). The markets most affected by the deterioration of the economic situation were Italy, Turkey and the Middle East. On the contrary, sales in North America maintained a growth rate of around 20%. EBITDA for the fourth quarter of 2018 was €7 million, or 19.5% of sales, up by 2.8% compared to the figure of €6.9 million (18.3% of sales) in the fourth quarter of 2017. EBIT was €2.8 million, equivalent to 7.9% of sales, and 23% lower than the €3.7 million recorded in the same quarter of 2017 (9.9% of sales). During the quarter, the Group recorded in the income statement positive exchange differences of €1.6 million, due to fluctuations in exchange rates with the Turkish lira and the U.S. dollar. Profit before taxes was €4.1 million, up by 16.5% compared to the €3.6 million recorded in Q4 2017. Net profit for the period was €3.2 million, down 29.6% from €4.6 million in the fourth quarter of 2017, when the Group recorded tax benefits of €1.3 million.
Based on the trend in negotiations with major customers and the current limited visibility in a still complex market context, for 2019 the Group estimates that it will be able to achieve sales ranging from €160 to €165 million and a gross operating profitability (EBITDA %) of more than 20%. “Confirming the Group’s more than solid competitive position, Sabaf achieved significant financial results in line with the company’s historical trends in a year characterised by a widespread macroeconomic deterioration, that became more evident in the last quarter – Pietro Iotti, Chief Executive Officer of Sabaf, declared -. During 2018, the acquisition of Okida Elektronic was the first step in the strategy of developing and diversifying the product range and enhanced the Group’s interesting growth prospects.