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Prysmian’s start to the year confirms the solidity of the industrial plan and of the main reference markets of the cable manufacturer, while confirming some critical issues in the telecommunications sector. In the quarter, Prysmian thus recorded a decline in revenues of 5.6%, to 3.61 billion, mainly due to the impact of the sales performance of the Digital Solutions business unit, which fell by 31.6 percent. Positive performances for the other business segments, particularly in the world of electrification. Results which contain the decline in Ebitda (412 million against 427 in the same period last year) and allow us to reach a profit of 190 million (slightly higher than the 187 in the first quarter of 2023), confirming above all a robust generation of cash of 827 million, almost doubled compared to last year, allowing the continuation of the deleveraging of the financial position, which in the quarter fell to 1.69 billion at the end of March against 2.07 billion last year. The CEO, Massimo Battaini, is satisfied, confirming the guidance at the top of the range and preparing for the closing of the maxi-acquisition of Encore Wire, announced in recent weeks.
«Prysmian – he comments – had a solid start to 2024. The first quarter results highlight excellent profitability, driven by the solid performance of the Power Grid and Transmission segments, while the order book stood at over 18 billion euros. In my first year as CEO of Prysmian we also announced the acquisition of Encore Wire. This transaction represents a unique opportunity to continue to grow and strengthen our position in North America, improve the diversification of our business and create value for all stakeholders.”
The results in detail highlight an organic growth of one percent to 474 million for the Transmission business unit (relating to large interconnections), with a margin increase from 11.2% to 13 percent. Revenues in the Power Grid segment continued to benefit from investments to upgrade the networks, with solid growth in particular in North America; in the first quarter they amounted to 852 million (+1.5%), also in this case with a sharply increasing Ebitda. In the Electrification business, Renewables continued to record double-digit growth, while in the Industrial & Construction business prices continued to normalize at a slower pace than expected in North America. Revenues from Digital Solutions decreased, in line with expectations (-31.6% organic change), a decline mainly due to the US market; Prysmian expects a recovery in volumes in the second half of the year.
As mentioned, the forecasts for the current year are confirmed. Prysmian is confident that it can position itself at the top of the objectives made public in February. As regards the ebitda, the range is between 1.57 and 1.67 billion while for the cash flow the range is between 675-775 million. A reduction in Scope 1&2 greenhouse gas emissions of 36% and Scope 3 of 13% vs 2019 is also expected. These objectives – as explained in a press release – presuppose the absence of substantial changes in the geopolitical crisis relating to the conflicts in Ukraine and Israel , as well as the exclusion of extreme price dynamics related to inputs or significant supply chain disruptions. The forecasts are also based on the company’s current scope of activity, assuming a euro/dollar exchange rate of 1.08, and do not include the impacts on cash flows relating to antitrust issues.