€516.3 million turnover and also a positive sign on Ebitda and employment. Investments confirmed in R&D and training. Energy efficiency, digitisation and sustainable prefabrication are the drivers of development.
26 May 2017. Manni Group, which presented the financial statements this morning at Crowne Plaza Hotel Verona Fiera, closes the financial year of 2016 with a profit. €516.3 million consolidated turnover (+ 9.7% compared to €470.6 million in the previous year), €30.2 million Ebitda, a net improvement compared to 2015 (€16.1 million), which is 5.8% of the turnover (3.4% in 2015), new investments of €15.2 million, a net financial position of €107.5 million, which is also an improvement from the previous year (€120.3 million), an increase in the net assets of €106 million.
“When the construction bubble burst in 2008 and the global decline in the construction industry began, nobody would have ever imagined that 10 years down the line, the decline would continue in Italy, reducing new constructions by over 60% – declared Chairman Giuseppe Manni – We did not stay idle to suffer the consequences.” The industrial leader of the Group founded in 1945, which today controls 12 companies with 21 production centres worldwide and 10,000 customers in 64 countries, looks to the future with optimism. In fact, the financial year 2016 confirms the trend towards quality rather than quantity, interest in energy efficiency, the search for anti-seismic safety of constructions and respect for the environment. “We are preparing for this important change: having finished celebrating the Group’s 70th anniversary, we are now focused with determination on the future, a future full of innovative projects and spirited by the present that paves the way.”
Internationalisation, product and process innovation, digitisation, and sustainability. This is what drives future development of the Group. In fact, an important process digitisation project was launched in 2016, involving deep Information and Communication Technology transformations focused on customer service and sales management. We kept on pursuing investments to extend and improve production lines and to seek new products and materials in all Business Units.
The development of the Group’s business led us to reach 1,031 employees (961 in 2015), mainly working on the development of international business, the services of the Holding and research and innovation sectors. We launched new training schemes involving all our employees, namely on the most advanced frontiers of digital innovation, the integration of processes in social networking, industrial research and the diffusion of sustainability.
“Most of the results achieved are mainly thanks to Italian and foreign employees, who were able to interpret the effort of change in the best way possible,” said Vice Chairman of the Holding, Francesco Manni , who pointed out that “many youngsters were included, motivated and trained in a process focused on innovation and internationalisation.” Many of them come together in periodical meetings in the newly formed Manni Young Generation (MYG) group, an original training course that directs them with an international vision in innovation and training courses in Italy and abroad. “It is not a closed elite,” explains Francesco Manni, “but a team that promotes young people with the greatest potential, helping them to contribute to the development of new strategic projects for the Group.” Moreover, they jokingly measure up to the most famous in the theatrical company ManNicomio, which staged a comedy last April with about thirty colleagues from various companies of improvised actors, costume designers and technicians.
The social commitment is expressed through initiatives in favour of communities that the Group’s activities insist on. In particular, the PRO DUBBO Foundation, which has contributed to construction and today manages the Dubbo Hospital in Ethiopia, the Brain Research Foundation, which supports research in Neuroscience in Verona and the Bosco Children Institute that hosts and rehabilitates Addis Ababa street children.
“Each of the elements quoted today refers to a clear vision expressed by the Holding Council in the strategy design for the next 5-10 years,” says CEO Enrico Frizzera. Focused on the customer, business values and internationalisation. Digital, Sustainability and Technological Innovation represent the frontiers, meaning the limits of a commercial, productive, technological, cultural and organisational nature that we have begun to move, expanding them. Administration and Personnel are the development vectors and tracks that use IT and Logistics tools. Lastly, Multiculturalism is the glue that binds everything together with Marketing and Communication activities. Quoting Folador, who wrote a lot about ethics in economy, we believe that in and for Manni Group this is a possible business made by people and companies that build the future.”
THE NUMBERS OF THE THREE BUSINESS DIVISIONS
All three business divisions in the Scaligera company’s operations recorded an increase in volume, as detailed by the Vice Chairman of the Holding, Francesco Manni.
In the historic Steel Division of pre-processing of steel products, the contribution towards growth came from Manni Sipre (carbon steels) and Manni Inox (stainless steels): both have introduced new pre-processing services and customer service. The 2016 turnover was €247.4 million (€238.1 in 2015), with Ebitda of €13.7 million (a net increase compared to €5.2 million in the previous year), and investments of €3.2 million (+ €2.2 million compared to 2015).
Consequently, these are the results of excellent technical and managerial performance throughout all process phases by Manni Sipre, of important and prestigious works on different geographical areas, from North Africa to Scandinavian countries, which were obtained by intercepting the so-called indirect export, namely that of accessing the export markets in commercial partnerships with Italian builders who carry out project orders worldwide. It has also contributed to the downstream verticalisation process initiated by Manni Inox, with investments aimed at expanding the range of products and services, and focusing business services on customised and highly targeted services left exposed by large retailers.
The Isopan Insulating Panels division for construction, which focuses on international development, is reaping the benefits, in particular, regarding the latest foreign openings. The overall turnover for 2016 was €224.8 million (€207.6 in the previous financial year), Ebitda is equivalent to €15.4 million (€12.3 in 2015). The trend of investments is also confirmed, which, despite a reduction compared to the previous year (€25.3 million), was maintained at €11.3 million. Six companies contribute to this result: Italy, Spain, Romania, Germany and, since the end of 2015, Russia and Mexico. In Mexico, the Italian-Venezuelan joint venture, Isocindu, is among the top three panel makers in Central America after just one year from inauguration.
The turnover of Energie Rinnovabili e Servizi (Renewable Energies and Services) was €44.1 million in 2016 (€24.9 in the previous year), Ebitda is €1.1 million. It includes Manni Energy for renewable energy and energy efficiency, which today has a strong strategic partnership with Officinae Verdi Group, the leading energy sustainability and efficiency company in Rome that has defined Green Building designs, and the setting up of Green Capital Alliance, a company in the form of a Benefit Corporation focused on technological innovation in the green and circular economy.
There is also the engineering company, Icom Engineering, which, as a result of excellent, rare skills, has started a research and experimentation process of sustainable prefabrication solutions by being awarded an important contract for the construction of prefabricated houses in the state of Suriname, and service companies for subsidiaries such as Manni Immobilia real estate, which profitably manages the Group’s real estate.
BUILDING A SUSTAINABLE FUTURE: 2016 REPORT OF MANNI GROUP
In the 2016 Report, Manni Group integrates its environmental sustainability strategy among development drivers, and consolidates its business commitment to economic and social sustainability. In addition to legal obligations, in order to look ahead, guiding and creating a change that involves the steel chain and the markets where it operates, redefining green and circular economy reference models, the company has defined its own commitment to counteract climate change by reducing 15% of its direct CO2 emissions by 2021. In addition to submitting the report data to a third party for certification, the targeted reduction in emissions will be subject to control by the Science Based Target Initiative, (among others, promoted by WWF International and the United Nations, which over 200 international companies form part of) to which Manni Group has decided to join, which will validate its compliance with the goals of maintaining global warming within 2°C.
The full text of the Sustainability Policy by Manni Group, the results of energy analysis carried out on all Italian business sites and the guidelines for the most effective action plans for the future are published in the 2016 Report and on the website www.mannigroup.com.