by Alfredo Ballarini17   Febbraio   2014

The industry of dye manufacturers for ceramics: an analysis

The industry of dye manufacturers for ceramics has been observed through a representative sample of 24 companies. The survey has showed a decrease for the year 2012 of almost 11% in sales, with a turnover from €546 million to €489 million. EBITDA has basically been halved, falling from 6.6% to 3.38% of the produced value, due to a higher impact of the cost of labour and of other fixed costs.  Amortization itself, kept almost flat in absolute value, is acting as margin pressures with a consequent negative EBIT and, unless specific support is foreseen within the exceptional items, a negative net profit too.

Financial exposure remains well balanced though not entirely insignificant and has got worse in the intragroup over the last two years. Free cash flow is getting better but the treasury management showed in the chart seems to point out the need for a time frame restruction of the various positions. If we consider the intragroup, collection and payment schedule are pretty much balanced, which might lead to some problems as to clients’ credits.
Forecasts on profitability show a more likeable impact of EBITDA, especially so when loss is more easily manageable and less structured. EBITDA has a 56% chance of going back to – and even overcome – 5.2% of impact on produced value, and only a 2% chance of getting down to 1.6% (or even lower). 

Summarizing the field’s economic and financial scenario through a unified rating process we would have (by simplified calculation) a Standard & Poor’s BB+ rating.