SDF healthy financial position despite market contraction

SDF’s economic results in 2019 showed growth both in terms of Earnings Before Tax (EBT) and Net Profit, despite the contraction in the market and the fall in turnover.

In 2019, the company recorded a turnover of €1.268 billion, down 7.6% on 2018. Operating performance was 8.7%, equivalent to €110 million, down slightly on 9% in 2018. Pre-tax profit was €59.3 million, a significant increase on the €50.0 million of the previous year, and net profit increased from €42.2 million in 2018 to €44.6 million in 2019.

The financial position closed with net borrowings of €281.6 million, confirming the evident financial soundness of the group for 2019. This important result was obtained by streamlining general warehouse management, down by 18%.

The negative trend in European markets and the weakness of export markets saw a fall in turnover in both tractor and combine harvester sectors, but Grégoire grape harvesters performed strongly in 2019 with a record turnover – up from €54.9 million to €70.7 million – and record profits, up by 55%.

SDF’s spare parts business continues to make a significant contribution to overall company results, and has been boosted by the development of an online sales’ platform.

Investment and product development was maintained at €60 million, with a focus on digitalisation of product and sales processes. This included the “connected tractor” project, using fleet management software that enables remote monitoring of the tractor’s main operating parameters. Digitalisation of the sales process using a new CRM system will enhance network engagement and sales.

The Covid-19 pandemic has made its presence felt within all SDF’s global production activities, but measures were put in place at the time to ensure production could continue as lockdown restrictions were lifted.

“Last year was particularly significant for our company, both because of the good earnings performance and the completion of the reorganisation of the sales division, alongside our work on digital transformation projects,” says SDF CEO Lodovico Bussolati. “We will continue to make major investments in Research and Development, and in 2020 we will be launching some important innovations for high-power tractors, combining product performance and connectivity.”

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