Revenues: €62.7 million (+6.4% vs FY 2022, +7.0% at constat FX rates)
Gross Profit: €38.7 million (61.7% Gross margin) vs €36.8 million in FY 2022
EBITDA: €9.6 million (15.4% EBITDA margin) vs €11.7 million in FY 2022
Net Income: €4.8 million (7.7% on Revenues) vs €7.5million in FY 2022
Net Financial Position: €3.2 million vs €4.4 million as of December 31, 2022
Sales orders record at the beginning of 2024
Ronco Scrivia (GE, Italy), March 27, 2024 – The Board of Directors of Racing Force S.p.A. (“Company” or “RFG”), the parent company of Racing Force Group, which is specialized in the development, production and marketing of safety components for motorsports competitions worldwide, as well as listed on the Euronext Growth Milan (RFG) and Paris segments (ALRFG), reviewed and approved the draft financial statements as of December 31, 2023 and the consolidated financial statements for 2023 prepared in accordance with international accounting standards.
The consolidated financial statements are available at the section Investor Relations\Financial Reports of the website www.racingforce.com.
Performance Analysis
In 2023, the Group recorded +6.4% growth in sales during the year, compared to the previous period (+7.0% at constant exchange rates), thanks particularly to the excellent results achieved on the European market (+11.2%) and the continuous growth in Asia Pacific (+15.0%), regions where the Group has further consolidated its leadership position and which represent 76% of the Group’s total sales.
Even in the Americas, despite lower sales compared to the previous year, due to a one-supply made in 2022 and weak demand coupled with the destocking policies implemented by some dealers during 2023, the Group increased its market share.
The increase in revenues during the fiscal year was mainly due to the driver’s equipment product category, driven by the increase in sales of racing suits, non-technical apparel and communication systems.
Gross profit registered an increase in absolute value of €1.9 million compared to fiscal year 2022. In percentage terms, a slight decrease of 0.8% was recorded, mainly due to the different composition of the mix of sales and the volatility in the costs of some raw materials.
During the fiscal year, the Group made significant investments to increase production and logistics capacity to support the growth within motorsport and, particularly, to carry on the diversification projects, currently underway.
General and administrative expenses, in detail, registered an increase of €2.7 compared to 2022, mainly due to the higher number of employees within the Group (+90 units employed on average during 2023 compared to the previous year). This increase was necessary in order to timely set up the proper organizational structure and production capacity, required to support both the activities within motorsport and the diversification projects.
The current capital structure is such as to allow investments in the coming future to further support the Group’s growth plan, both within motorsport and as regards the diversification projects.
Current trading
Sales at the beginning of 2024 are in line with the previous year, maintaining stability in the main geographic areas of operation, except for non-technical apparel under the Racing Spirit brand which registered a decrease compared to the first months of 2023, mainly due to the deliveries made at the beginning of the previous year to two important customers covering the entire season.
Orders received from customers in the first months of the year increased significantly compared to the same period of the previous year.
The approval of a new FIA safety standard for helmets, effective upon the first homologation of a compliant model by a manufacturer, entails the risk of potential effects on demand in the first part of 2024, particularly from dealers, waiting for the new models, with the expectation of a strong acceleration in sales once the new homologated helmets will be available. For this reason, the development of helmets compliant with the new standard, with the aim of having a large quantity in stock by the end of 2024, is a crucial element to achieve the growth targets set for the Bell brand and gaining new market share. To date, testing activities underway at the R&D center in Bahrain, which is unique in the competitive landscape, are particularly positive.
In addition, a new Snell homologation standard for helmets distributed on the US market is scheduled to come into force in autumn 2025. The introduction of new safety standards has always been a technological challenge and, at the same time, an important growth opportunity for the Group.
With reference to other main product categories, both Car parts and Driver’s Equipment are expected to benefit from the technical partnership agreement in place for the season, starting with the new agreement signed at the beginning of the year with Penske Team, one of the main American teams racing in Nascar and Indycar.
Following the consolidation of the Group’s structure during 2023, to support the expected growth in motorsport and with the aim of supporting the implementation of diversification projects, the Group’s priority for the coming periods, together with the growth in turnover, is to achieve an efficiency increase in the structure with a positive impact on marginality.
The development of the diversification projects, with initial results expected between late 2024 and Q1 2025, is progressing as planned.
The prolonged war between Russia and Ukraine, coupled with escalating tensions in the Middle East, contributes to maintaining a high level of geo-political risk worldwide, generating significant uncertainty on the global economy and businesses. As of today, marginal effects impacted the Group’s operating results, however it will be necessary to continue monitoring the situation’s progression throughout the year.
Allocation of net result
The Board of Directors of Racing Force S.p.A. has proposed to the Shareholders’ Meeting to allocate the net profit for fiscal year 2023, amounting to 2,565,413 euro, as follows:
- €2,312,928 to dividends to be distributed, amounting to €0.09 per share, before withholding tax, with an ex-dividend date of May 13th, 2024, in accordance with the Euronext Growth Milan calendar, an entitlement date of May 14th, 2024 and a dividend payment date of May 15th, 2024;
- The residual part, equal to € 252,485, to retained earnings.
The Board of Directors also resolved on:
- Execution of the Stock Grant Plan 2023-2025
- Proposal to the shareholders’ meeting for authorization to purchase and dispose of own shares by the Company pursuant to articles 2357 et seq. of the Italian Civil Code
- Submission t to the shareholders’ meeting of the necessary amendments to bring the current bylaws into conformity with the new provisions of the EGM Issuers Regulation and Legge Capitali, as well as minor revisions.
Calling of the Ordinary and Extraordinary Shareholders’ Meeting
The Board of Directors resolved to convene the Company’s Ordinary and Extraordinary Shareholders’ Meeting on April 29th, 2024.
Conference Call for the presentation of the results
The results for year ended December 31, 2023 will be presented to analysts and investors on March 28, 2024 at 10:00 a.m. (CET), through Microsoft Teams platform, using the following link:
Microsoft Teams Meeting
Click here to join the meeting
Meeting ID: 318 454 817 619
Passcode: qdQ9hh
The presentation supporting the conference call will be made available on the Company’s website www.racingforce.com in the «Investor Relations» section at the following link: https://ir.racingforce.com/en/presentations.
For further details, please refer to the press release available at Borsa Italiana S.p.A., at the company’s registered office, and in the Investor Relations/Price Sensitive Press Releases section of the website www.racingforce.com.