First quarter 2023 results

June 9, 2023

The Board of Directors of ILBE (Iervolino and Lady Bacardi Entertainment) – a company active in the production of film and television content (Euronext Growth Milan – IT0005380602 – IE and Euronext Growth Paris – IT0005380602 – ALIE) – met today to examine and approve the Group’s final results for the first quarter ended 31 March 2023.

Andrea Iervolino, president and founder of ILBE, said: ‘We closed a positive and profitable quarter, maintaining a considerable order book. Our solid capital structure is confirmed, although we are affected by seasonality and the related payments concentrated in the quarter. I am very pleased to affirm that we continue to work at full speed on many projects, including innovative ones, thanks also to some business
consolidation achieved in 2022 which was an extremely important goal for us.”

The quarter closed with revenues of Euro 32.5 million, up from Euro26.9 million in 1Q 2022, and an EBIT margin of Euro 3.2 million compared to Euro 4.0 million as of 31 March 2022 – equal to 10.0% of Revenues (14.9% in 1Q 2022), slightly down again due to the change in strategy already implemented in the last quarter of last year concerning the sale of distribution rights of the so-called “family movies”, with the recognition of higher amortisation. The quarter closed with a net profit of Euro 2.5 million (Euro 3.3 million in 1Q 2022). The backlog, which amounted to Euro 172.9 million as at 31 December 2022, reached Euro 186.9 million as at 31 March 2023 due to new orders for Tik Tok and animation films 2023.

The Net Debt Financial Position at 31 March 2023 amounted to Euro 37.6 million, adjusted for the net effect of Euro 3.0 million of IFRS 16 related to new leases (vs. Euro 23.1 million at 31 December 2022, and Euro 28.9 at 31 March 2022). The increase in the first quarter is physiological in relation to payments for major productions concentrated in the period (Verona, Paradox effect, Skincare, Kill them all, Tik Tok, Animation Film: Baby Puffins & Bunny). Receivables collections and lower subsequent payments will reduce the net debt in the following quarters. The period ending as at 31 March 2023 closed with a net