UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 6-K

 

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of May 2022

Commission File Number: 001-40618

Stevanato Group S.p.A.

(Translation of registrant’s name into English)

Via Molinella 17

35017 Piombino Dese – Padua

Italy

(Address of principal executive office)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40‑F.

Form 20-F ☒ Form 40-F ☐

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):

Yes ☐ No ☒

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):

Yes ☐ No ☒

 

 

 

 

 

 

 

 

 

 

 

 


 

img259851945_0.jpg 

 

Stevanato Group S.p.A.

 

Interim condensed consolidated financial statements

for the three months ended March 31, 2022

 

Table of Contents

 

 

Page

PART I - FINANCIAL INFORMATION

1

Item 1. Financial Statements

1

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

31

Item 3. Quantitative and Qualitative Disclosure About Market Risk

46

Item 4. Controls and Procedures

51

PART II - OTHER INFORMATION

52

Item 1. Legal Proceedings

52

Item 1.A Risk Factors

52

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

52

Item 3. Defaults Upon Senior Securities

52

Item 5. Other Information

52

SIGNATURES

53

 

 

 


 

CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING STATEMENTS

 

This quarterly report on Form 6-K contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect the current views of Stevanato Group S.p.A. (“we”, “our”, “us”, “Stevanato Group” or the “Company”). These forward-looking statements include, or may include, words such as “raising”, “believe”, “potential”, “increased”, “future”, “remain”, “growing”, “expect”, “foreseeable”, “expected”, “to be”, “includes”, “estimated”, “assumes”, “would provide”, “anticipate”, “will”, “plan”, “may”, “forecast”, and other similar terminology. Forward-looking statements contained in this report include, but are not limited to, statements about: our future financial performance, including our revenue, operating expenses and our ability to maintain profitability and operational and commercial capabilities; our expectations regarding the development of our industry and the competitive environment in which we operate; the expansion of our plants and our expectations to increase production capacity; the global supply chain and our committed orders; the global response to COVID-19 and our role in it; our geographical and industrial footprint; and our goals, strategies and investment plans. These statements are neither promise nor guarantee but involve known and unknown risks, uncertainties and other important factors and circumstances that may cause Stevanato Group’s actual results, performance or achievements to be materially different from its expectations expressed or implied by the forward-looking statements, including conditions in the U.S. capital markets, negative global economic conditions, inflation, potential negative developments in the COVID-19 pandemic, the impact of the conflict between Russia and Ukraine, supply chain challenges and other negative developments in Stevanato Group’s business or unfavorable legislative or regulatory developments. The following are some of the factors that could cause our actual results to differ materially from those expressed in or underlying our forward-looking statements: (i) our product offerings are highly complex, and, if our products do not satisfy applicable quality criteria, specifications and performance standards, we could experience lost sales, delayed or reduced market acceptance of our products, increased costs and damage to our reputation; (ii) we must develop new products and enhance existing products, adapt to significant technological and innovative changes and respond to introductions of new products by competitors to remain competitive; (iii) our backlog might not accurately predict our future revenue, and we might not realize all or any part of the anticipated revenue reflected in our backlog; (iv) if we fail to maintain and enhance our brand and reputation, our business, results of operations and prospects may be materially and adversely affected; (v) we are highly dependent on our management and employees. Competition for our employees is intense, and we may not be able to attract and retain the highly skilled employees that we need to support our business and our intended future growth; (vi) our business, financial condition and results of operations depend upon maintaining our relationships with suppliers and service providers; (vii) our business, financial condition and results of operations depend upon the availability and price of high-quality materials and energy supply and our ability to contain production costs; (viii) the current conflict between Russia and Ukraine and the financial and economic sanctions imposed by the European Union, the U.S., the United Kingdom and other countries and organizations against officials, individuals, regions, and industries in Russia and Belarus may negatively impact our ability to source gas at commercially reasonable terms or at all and could have a material adverse effect on our operations; (ix) significant interruptions in our operations could harm our business, financial condition and results of operations; (x) as a consequence of the COVID-19 pandemic, sales of syringes and vials to and for vaccination programs globally increased resulting in a revenue growth acceleration. The demand for such products may shrink, if the need for COVID-19 related solutions declines; (xi) our manufacturing facilities are subject to operating hazards which may lead to production curtailments or shutdowns and have an adverse effect on our business, results of operations, financial condition or cash flows; (xii) we may face significant competition in implementing our strategies for revenue growth in light of actions taken by our competitors; (xiii) our global operations are subject to international market risks that may have a material effect on our liquidity, financial condition, results of operations and cash flows; (xiv) we are required to comply with a wide variety of laws and regulations and are subject to regulation by various federal, state and foreign agencies; (xv) if relations between China and the United States deteriorate, our business in the United States and China could be materially and adversely affected; and (xvi) Cyber security risks and the failure to maintain the confidentiality, integrity and availability of our computer hardware, software and internet applications and related tools and functions, could result in damage to our reputation, data integrity and/or subject us to costs, fines or lawsuits under data privacy or other laws or contractual requirements. This list is not exhaustive. We caution you therefore against relying on these forward-looking statements and we qualify all of our forward-looking statements by these cautionary statements.

 

These forward-looking statements speak only as at their dates. The Company undertakes no obligation to update any forward-looking statement or statements to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events. New factors emerge from time to time, and it is not possible to predict all of these factors. Further, the Company cannot assess the impact of each such factor on our business or the extent to which any factor, or combination of factors, may cause actual results to be materially different from those contained in any forward-looking statements.

 

For a description of certain additional factors that could cause the Company’s future results to differ from those expressed in any such forward-looking statements, refer to the risk factors discussed under “Item 1A. Risk Factors” below and “Risk Factors” in our Annual Report on Form 20-F/A for the year ended December 31, 2021 filed with the U.S. Securities and Exchange Commission on April 5, 2022.

 


 

 

 

PART I–FINANCIAL INFORMATION

Item 1. Financial Statements

Stevanato Group S.p.A.

Interim consolidated income statements

for the three months ended March 31, 2022 and 2021

(Unaudited)

 

 

 

 

 

For the three months ended
March 31,

 

 

 

 

 

2022

 

 

2021

 

 

 

 

 

(EUR thousand)

 

 

 

Notes

 

 

 

 

 

 

Revenues

 

9

 

 

212,074

 

 

 

192,849

 

Cost of sales

 

10

 

 

144,625

 

 

 

127,440

 

Gross Profit

 

 

 

 

67,449

 

 

 

65,409

 

 

 

 

 

 

 

 

 

 

Other operating income

 

11

 

 

1,569

 

 

 

3,225

 

Selling and Marketing expenses

 

12

 

 

4,921

 

 

 

5,868

 

Research and Development expenses

 

12

 

 

7,685

 

 

 

5,820

 

General and Administrative expenses

 

12

 

 

18,495

 

 

 

14,007

 

Operating Profit

 

 

 

 

37,917

 

 

 

42,939

 

 

 

 

 

 

 

 

 

 

Finance income

 

13

 

 

2,980

 

 

 

2,005

 

Finance expense

 

14

 

 

4,612

 

 

 

3,239

 

Profit Before Tax

 

 

 

 

36,285

 

 

 

41,705

 

 

 

 

 

 

 

 

 

 

Income taxes

 

15

 

 

8,521

 

 

 

5,140

 

Net Profit

 

 

 

 

27,764

 

 

 

36,565

 

 

 

 

 

 

 

 

 

 

Net Profit attributable to:

 

 

 

 

 

 

 

 

Equity holders of the parent

 

 

 

 

27,723

 

 

 

36,551

 

Non-controlling interests

 

 

 

 

41

 

 

 

14

 

 

 

 

 

 

27,764

 

 

 

36,565

 

 

 

 

 

 

 

 

 

 

Earnings per share

 

 

 

 

 

 

 

 

Basic earnings per common share (in EUR)

 

16

 

 

0.10

 

 

 

0.15

 

Diluted earnings per common share (in EUR)

 

16

 

 

0.10

 

 

 

0.15

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of the Interim Condensed Consolidated Financial Statements

1


 

Stevanato Group S.p.A.

Interim consolidated statements of comprehensive income

for the three months ended March 31, 2022 and 2021

(Unaudited)

 

 

 

 

 

For the three months ended
March 31,

 

 

 

 

 

2022

 

 

2021

 

 

 

 

 

(EUR thousand)

 

 

 

Notes

 

 

 

 

 

 

Net Profit

 

 

 

 

27,764

 

 

 

36,565

 

 

 

 

 

 

 

 

 

 

Gains/(losses) from remeasurement of employee defined benefit plans

 

 

 

 

291

 

 

 

140

 

Tax effect relating to those components of OCI

 

 

 

 

(70

)

 

 

(34

)

Other comprehensive income (loss) that will not be classified subsequently to profit or loss

 

 

 

 

221

 

 

 

106

 

 

 

 

 

 

 

 

 

 

Exchange difference on translation of foreign operations

 

24

 

 

12,167

 

 

 

2,585

 

Changes in the fair value of cash flow hedging instruments

 

 

 

 

2,473

 

 

 

469

 

Tax effect relating to those components of OCI

 

 

 

 

(593

)

 

 

(113

)

Other comprehensive income (loss) that will be classified subsequently to profit or loss

 

 

 

 

14,047

 

 

 

2,941

 

 

 

 

 

 

 

 

 

 

Total other comprehensive income (loss), net of tax

 

 

 

 

14,268

 

 

 

3,048

 

 

 

 

 

 

 

 

 

 

Total Comprehensive Income

 

 

 

 

42,032

 

 

 

39,613

 

 

 

 

 

 

 

 

 

 

Attributable to:

 

 

 

 

 

 

 

 

Equity holders of the parent

 

 

 

 

41,976

 

 

 

39,588

 

Non-controlling interests

 

 

 

 

56

 

 

 

24

 

 

 

 

 

 

42,032

 

 

 

39,613

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of the Interim Condensed Consolidated Financial Statements

2


 

Stevanato Group S.p.A.

Interim consolidated statements of financial position

as at March 31, 2022 and at December 31, 2021

(Unaudited)

 

 

 

 

 

At March 31,

 

 

At December 31,

 

 

 

 

 

2022

 

 

2021

 

 

 

 

 

(EUR thousand)

 

Assets

 

Notes

 

 

 

 

 

 

Non-current assets

 

 

 

 

 

 

 

 

Goodwill

 

 

 

 

47,243

 

 

 

47,243

 

Other intangible assets

 

17

 

 

32,101

 

 

 

31,928

 

Right of Use assets

 

19

 

 

22,148

 

 

 

22,690

 

Property, plant and equipment

 

18

 

 

440,161

 

 

 

392,717

 

Financial assets - investments FVTPL

 

 

 

 

1,032

 

 

 

1,084

 

Other non-current financial assets

 

20

 

 

1,340

 

 

 

1,334

 

Deferred tax assets

 

 

 

 

57,060

 

 

 

55,877

 

 

 

 

 

 

601,085

 

 

 

552,873

 

Current assets

 

 

 

 

 

 

 

 

Inventories

 

21

 

 

166,763

 

 

 

148,917

 

Contract assets

 

22

 

 

77,425

 

 

 

62,133

 

Trade receivables

 

22

 

 

174,506

 

 

 

165,259

 

Other current financial assets

 

20

 

 

28,641

 

 

 

27,217

 

Tax receivables

 

23

 

 

27,581

 

 

 

25,063

 

Other receivables

 

 

 

 

24,826

 

 

 

26,341

 

Cash and cash equivalents

 

 

 

 

366,691

 

 

 

411,039

 

 

 

 

 

 

866,433

 

 

 

865,969

 

Total assets

 

 

 

 

1,467,518

 

 

 

1,418,842

 

Equity and liabilities

 

 

 

 

 

 

 

 

Equity

 

 

 

 

 

 

 

 

Share capital

 

24

 

 

21,698

 

 

 

21,698

 

Reserves and Retained Earnings

 

24

 

 

835,514

 

 

 

686,055

 

Net profit attributable to equity holders of the parent

 

 

 

 

27,723

 

 

 

134,321

 

Equity attributable to equity holders of the parent

 

 

 

 

884,935

 

 

 

842,074

 

Non-controlling interests

 

 

 

 

(359

)

 

 

(415

)

Total equity

 

 

 

 

884,576

 

 

 

841,659

 

 

 

 

 

 

 

 

 

 

Non-current liabilities

 

 

 

 

 

 

 

 

Non-current financial liabilities

 

25

 

 

197,229

 

 

 

202,296

 

Employees benefits

 

27

 

 

12,265

 

 

 

11,853

 

Provisions

 

28

 

 

3,573

 

 

 

3,499

 

Deferred tax liabilities

 

 

 

 

19,253

 

 

 

19,105

 

Other non-current liabilities

 

29

 

 

1,815

 

 

 

1,808

 

 

 

 

 

 

234,135

 

 

 

238,561

 

Current liabilities

 

 

 

 

 

 

 

 

Current financial liabilities

 

25

 

 

54,815

 

 

 

46,195

 

Trade payables

 

30

 

 

154,550

 

 

 

164,787

 

Contract liabilities

 

31

 

 

15,713

 

 

 

18,771

 

Advances from customers

 

31

 

 

28,713

 

 

 

23,616

 

Tax payables

 

23

 

 

28,622

 

 

 

19,440

 

Other liabilities

 

30

 

 

66,394

 

 

 

65,813

 

 

 

 

 

 

348,807

 

 

 

338,622

 

Total liabilities

 

 

 

 

582,942

 

 

 

577,183

 

Total equity and liabilities

 

 

 

 

1,467,518

 

 

 

1,418,842

 

 

 

The accompanying notes are an integral part of the Interim Condensed Consolidated Financial Statements

3


 

 

Stevanato Group S.p.A.

Interim consolidated statements of changes in equity

for the three months ended March 31, 2022 and 2021

(Unaudited)

 

 

 

Notes

 

Share
capital

 

 

Share
Premium
Reserve

 

 

Treasury
shares

 

 

Cash flow
hedge
reserve

 

 

Reserve for
actuarial
gains /
(losses)

 

 

Foreign
currency
translation
reserve

 

 

Retained
earnings
and other
reserve

 

 

Equity
attributable to
equity holders
of the parent

 

 

Non-
controlling
interests

 

 

Total
equity

 

 

 

 

 

(EUR thousand)

 

At January 1, 2022

 

 

 

 

21,698

 

 

 

389,312

 

 

 

(27,740

)

 

 

(1,277

)

 

 

(745

)

 

 

(22,680

)

 

 

483,506

 

 

 

842,074

 

 

 

(415

)

 

 

841,659

 

Other comprehensive income

 

24

 

 

 

 

 

 

 

 

 

 

 

1,880

 

 

 

221

 

 

 

12,152

 

 

 

 

 

 

14,253

 

 

 

15

 

 

 

14,268

 

Net profit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

27,723

 

 

 

27,723

 

 

 

41

 

 

 

27,764

 

Total comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

1,880

 

 

 

221

 

 

 

12,152

 

 

 

27,723

 

 

 

41,976

 

 

 

56

 

 

 

42,032

 

Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

885

 

 

 

885

 

 

 

 

 

 

885

 

Total effects

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

885

 

 

 

885

 

 

 

 

 

 

885

 

At March 31, 2022

 

 

 

 

21,698

 

 

 

389,312

 

 

 

(27,740

)

 

 

603

 

 

 

(524

)

 

 

(10,528

)

 

 

512,114

 

 

 

884,935

 

 

 

(359

)

 

 

884,576

 

 

 

 

 

Notes

 

Share
capital

 

 

Treasury
shares

 

 

Cash flow
hedge
reserve

 

 

Reserve for
actuarial
gains /
(losses)

 

 

Foreign
currency
translation
reserve

 

 

Retained
earnings
and other
reserve

 

 

Equity
attributable to
equity holders
of the parent

 

 

Non-
controlling
interests

 

 

Total
equity

 

 

 

 

 

(EUR thousand)

 

At January 1, 2021

 

 

 

 

20,002

 

 

 

(26,189

)

 

 

(3,345

)

 

 

(675

)

 

 

(34,911

)

 

 

355,613

 

 

 

310,495

 

 

 

(355

)

 

 

310,140

 

Other comprehensive income

 

24

 

 

 

 

 

 

 

 

357

 

 

 

106

 

 

 

2,574

 

 

 

 

 

 

3,037

 

 

 

11

 

 

 

3,048

 

Net profit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

36,551

 

 

 

36,551

 

 

 

14

 

 

 

36,565

 

Total comprehensive income

 

 

 

 

 

 

 

 

 

 

357

 

 

 

106

 

 

 

2,574

 

 

 

36,551

 

 

 

39,588

 

 

 

25

 

 

 

39,613

 

Dividends

 

24

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(11,200

)

 

 

(11,200

)

 

 

 

 

 

(11,200

)

Other

 

 

 

 

 

 

 

(261

)

 

 

 

 

 

 

 

 

 

 

 

445

 

 

 

184

 

 

 

 

 

 

184

 

Total effects

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(10,755

)

 

 

(11,016

)

 

 

 

 

 

(11,016

)

At March 31, 2021

 

 

 

 

20,002

 

 

 

(26,450

)

 

 

(2,988

)

 

 

(569

)

 

 

(32,337

)

 

 

381,409

 

 

 

339,067

 

 

 

(330

)

 

 

338,737

 

 

 

 

 

The accompanying notes are an integral part of the Interim Condensed Consolidated Financial Statements

4


 

Stevanato Group S.p.A.

Interim consolidated statements of cash flows

for the three months ended March 31, 2022 and 2021

(Unaudited)

 

 

 

 

 

For the three months ended
March 31,

 

 

 

 

 

2022

 

 

2021

 

 

 

 

 

(EUR thousand)

 

 

 

Notes

 

 

 

 

 

 

Operating activities

 

 

 

 

 

 

 

 

Profit before tax

 

 

 

 

36,285

 

 

 

41,705

 

Adjustments:

 

 

 

 

 

 

 

 

Depreciation and impairment of property, plant and equipment

 

 

 

 

11,739

 

 

 

9,583

 

Amortization of intangible assets and Right of Use

 

 

 

 

3,472

 

 

 

3,366

 

Allowance for doubtful accounts

 

 

 

 

(55

)

 

 

982

 

Net finance expense/ (income)

 

 

 

 

2,640

 

 

 

1,057

 

(Gain)/Loss from the disposal of non-current assets

 

 

 

 

(12

)

 

 

 

Change in other provisions and in employee benefits

 

 

 

 

(453

)

 

 

2,907

 

Other non-cash expenses, net

 

 

 

 

(1,518

)

 

 

(332

)

Working capital changes:

 

 

 

 

 

 

 

 

- inventories and contract assets

 

 

 

 

(31,298

)

 

 

(13,894

)

- trade receivables and other assets

 

 

 

 

(7,533

)

 

 

(23,867

)

- trade payables, contract liabilities, advances and other liabilities

 

 

 

 

(5,739

)

 

 

(9,716

)

Interest paid

 

 

 

 

(805

)

 

 

(1,147

)

Interest received

 

 

 

 

162

 

 

 

162

 

Income tax paid

 

 

 

 

(1,735

)

 

 

(4,919

)

Cash Flow from operating activities

 

 

 

 

5,150

 

 

 

5,887

 

Cash Flow from investing activities

 

 

 

 

 

 

 

 

Purchase of property, plant and equipment

 

 

 

 

(52,741

)

 

 

(21,729

)

Proceeds from sale of property plant and equipment

 

 

 

 

13

 

 

 

 

Purchase of intangible assets

 

 

 

 

(1,938

)

 

 

(662

)

Investment in financial assets

 

 

 

 

8

 

 

 

(32

)

Net cash flows used in investing activities

 

 

 

 

(54,658

)

 

 

(22,423

)

Cash Flow from financing activities

 

 

 

 

 

 

 

 

Acquisition of non-controlling interests

 

 

 

 

 

 

 

(118

)

Dividends paid

 

 

 

 

 

 

 

(11,200

)

Payment of principal portion of lease liabilities

 

 

 

 

(1,554

)

 

 

(1,607

)

Proceed from loans

 

 

 

 

5,564

 

 

 

4,053

 

Repayments of loans

 

 

 

 

(909

)

 

 

(11,426

)

Decrease in other current financial activities

 

 

 

 

 

 

 

484

 

Net cash flows from/(used in) financing activities

 

 

 

 

3,101

 

 

 

(19,814

)

 

 

 

 

 

 

 

 

 

Net change in cash and cash equivalents

 

 

 

 

(46,407

)

 

 

(36,350

)

Net foreign exchange difference

 

 

 

 

2,059

 

 

 

937

 

Cash and cash equivalents at January 1

 

 

 

 

411,039

 

 

 

115,599

 

Cash and cash equivalents at March 31

 

 

 

 

366,691

 

 

 

80,186

 

 

 

 

The accompanying notes are an integral part of the Interim Condensed Consolidated Financial Statements

5


 

Stevanato Group S.p.A.

Notes to the interim condensed consolidated financial statements

 

1.
Corporate information

 

Stevanato Group S.p.A. (herein referred to as the “Company” and together with its subsidiaries the “Group”) is headquartered in Italy and its registered office is located at via Molinella 17, Piombino Dese (Padova, Italy). The Group is active in the design, production and distribution of products and technology to provide integrated solutions primarily for the bio-pharma, pharmaceutical and healthcare industries. The Group's continuous investments, advancement of technology in primary packaging, strong reputation and complementary acquisitions, has helped it become a global player in the bio-pharma industry. Principal products are drug containment and primary packaging solutions, drug delivery systems, medical devices, in-vitro diagnostics, analytical services, visual inspection machines, assembling and packaging machines and glass forming machines.

The Group has nine production plants for manufacturing and assembly of bio-pharma, pharmaceutical and healthcare products (in Italy, Germany, Slovakia, Brazil, Mexico, China, and the United States), five plants for the production of machinery and equipment (in Italy and Denmark), two sites for analytical services (in Italy and the United States) and two commercial offices (in Japan and the United States). Further, on October 4, 2021, the Group announced the start of construction of a new facility in Fishers, Indiana, United States. On March 10, 2022, the Group announced the acquisition of a new facility in Zhangjiagang, China which will undergo renovations and serve as its Asia Pacific regional hub. The Group is also investing in the expansion of production facilities in Piombino Dese, Italy, where construction of a new building is underway. The expansion of the Group's global footprint will diversify production, improve proximity to customers and allow the Group to provide services in more than 70 countries worldwide.

Stevanato Group S.p.A. is controlled by Stevanato Holding S.r.l. which holds 78.03% of its share capital.

On July 16, 2021 Stevanato Group began trading on the New York Stock Exchange under the symbol STVN.

 

2.
Authorization of interim condensed consolidated financial statements and compliance with international financial reporting standards

 

These Interim Condensed Consolidated Financial Statements of Stevanato Group S.p.A. were authorized for issuance on May 6, 2022 and have been prepared in accordance with IAS 34 - Interim Financial Reporting. The Interim Condensed Consolidated Financial Statements should be read in conjunction with the Group’s consolidated financial statements at and for the year ended December 31, 2021 (the “Consolidated Financial Statements”), which have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (IFRS).

 

3.
Basis of preparation for interim condensed consolidated financial statements

 

The preparation of the Interim Condensed Consolidated Financial Statements requires management to make estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities as well as disclosures of contingent liabilities. If in the future such estimates and assumptions, which are based on management’s best judgment at the date of these Interim Condensed Consolidated Financial Statements, deviate from the actual circumstances, the original estimates and assumptions will be modified as appropriate in the period in which the circumstances change.

Reference should be made to the section “Use of estimates” in the Consolidated Financial Statements for a detailed description of the more significant valuation procedures used by the Group.

Moreover, in accordance with IAS 34, certain valuation procedures, in particular those of a more complex nature regarding matters such as any impairment of non-current assets, are only carried out in full during the preparation of the annual consolidated financial statements, when all the related information necessary is available, other than in the event that there are indications of impairment, in which case an immediate assessment is required. Similarly, the actuarial valuations that are required for the determination of employee benefit provisions are also usually carried out during the preparation of the annual consolidated financial statements, except in the event of significant market fluctuations or significant plan amendments, curtailments or settlements. IAS 34 also requires the disclosure of the nature and amount of items affecting net income that are unusual due to their nature, size or significance.

 

6


 

These interim condensed consolidated financial statements consider that the Group publishes quarterly interim financial statements. As the Group is not including the full set of disclosures, as required in a complete set of financial statements, the interim financial statements of the Group are regarded as ‘condensed’, as per IAS 34.

 

New standards, amendments and interpretations

 

The accounting policies adopted in the preparation of the interim condensed consolidated financial statements are consistent with those followed in the preparation of the Group’s annual consolidated financial statements for the year ended December 31, 2021, except for the adoption of new standards effective as of January 1, 2022. The Group has not early adopted any standard, interpretation or amendment that has been issued but is not yet effective.

The following amendments and interpretations were adopted for the first time in 2022 and did not have a material impact on the interim condensed consolidated financial statements of the Group:

Amendments to IFRS 3 – Reference to the Conceptual Framework,
Amendments to IAS 16 – Property, Plant and Equipment: Proceeds before Intended Use,
Amendments to IAS 37 – Onerous Contracts – Costs of Fulfilling a Contract.

 

Amendments to IFRS 3 - Reference to the Conceptual Framework

In May 2020, the IASB issued Amendments to IFRS 3 - Business Combinations - Reference to the Conceptual Framework. The amendments are intended to replace a reference to the Framework for the Preparation and Presentation of Financial Statements, issued in 1989, with a reference to the Conceptual Framework for Financial Reporting issued in March 2018 without significantly changing its requirements. The Board also added an exception to the recognition principle of IFRS 3 to avoid the issue of potential ‘day 2’ gains or losses arising for liabilities and contingent liabilities that would be within the scope of IAS 37 or IFRIC 21 - Levies, if incurred separately. At the same time, the Board decided to clarify existing guidance in IFRS 3 for contingent assets that would not be affected by replacing the reference to the Framework for the Preparation and Presentation of Financial Statements. The amendments are effective for annual reporting periods beginning on or after January 1, 2022 and apply prospectively. The amendments did not have a material impact on the Group.

 

Amendments to IAS 16 - Property, Plant and Equipment: Proceeds before Intended Use

In May 2020, the IASB issued Amendments to IAS 16 - Property, Plant and Equipment - Proceeds before Intended Use, which prohibits entities deducting from the cost of an item of property, plant and equipment, any proceeds from selling items produced while bringing that asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Instead, an entity recognizes the proceeds from selling such items, and the costs of producing those items, in profit or loss. The amendment is effective for annual reporting periods beginning on or after January 1, 2022 and must be applied retrospectively to items of property, plant and equipment made available for use on or after the beginning of the earliest period presented when the entity first applies the amendment. The amendments did not have a material impact on the Group.

 

Amendments to IAS 37 - Onerous Contracts - Costs of Fulfilling a Contract

In May 2020, the IASB issued Amendments to IAS 37 - Onerous Contracts to specify which costs an entity needs to include when assessing whether a contract is onerous or loss-making. The amendments apply a “directly related cost approach”. The costs that relate directly to a contract to provide goods or services include both incremental costs and an allocation of costs directly related to contract activities. General and Administrative costs do not relate directly to a contract and are excluded unless they are explicitly chargeable to the counterparty under the contract. The amendments are effective for annual reporting periods beginning on or after January 1, 2022. The Group will apply these amendments to contracts for which it has not yet fulfilled all its obligations at the beginning of the annual reporting period in which it first applies the amendments. The amendments did not have a material impact on the Group.

 

New standards, amendments and interpretations not yet effective

 

Amendments to IAS 1 - Classification of Liabilities as Current or Non-current

 

7


 

In January 2020, the IASB issued amendments to paragraphs 69 to 76 of IAS 1 to specify the requirements for classifying liabilities as current or non-current. The amendments clarify:

What is meant by a right to defer settlement.
That a right to defer must exist at the end of the reporting period.
That classification is unaffected by the likelihood that an entity will exercise its deferral right.
That only if an embedded derivative in a convertible liability is itself an equity instrument would the terms of a liability not impact its classification.

 

The amendments are effective for annual reporting periods beginning on or after January 1, 2023 and must be applied retrospectively. The Group is currently assessing the impact the amendments will have on current practice, monitoring the IFRS Interpretations Committee’s discussions, and whether existing loan agreements may require renegotiation.

 

Amendments to IAS 8 - Accounting Policies, Changes to Accounting Estimates and Errors

On 12 February 2021, the IASB issued amendments to IAS 8 Accounting Policies, Changes to Accounting Estimates and Errors, in which it introduces a new definition of “accounting estimates”. The amendments are designed to clarify the distinction between changes in accounting estimates and changes in accounting policies and the correction of errors. The amendments become effective for annual reporting periods beginning on or after January 1, 2023 and apply to changes in accounting policies and changes in accounting estimates that occur on or after the start of that period. The amendments are not expected to have a material impact on the Group.

 

Amendments to IAS 1 - Presentation of Financial Statements

In February 2021, the IASB issued amendments to IAS 1 Presentation of Financial Statements in which it provides guidance and examples to help entities apply materiality judgements to accounting policy disclosures. The IASB also issued amendments to IFRS Practice Statement 2 Making Materiality Judgements (the PS) to support the amendments in IAS 1 by explaining and demonstrating the application of the ‘four-step materiality process’ to accounting policy disclosures. The amendments aim to help entities provide accounting policy disclosures that are more useful by replacing the requirement for entities to disclose their ‘significant’ accounting policies with a requirement to disclose their ‘material’ accounting policies and adding guidance on how entities apply the concept of materiality in making decisions about accounting policy disclosures. The amendments to IAS 1 are applicable for annual periods beginning on or after January 1, 2023. The amendments are not expected to have a material impact on the Group.

 

Amendments to IAS 12 - Deferred Tax related to Assets and Liabilities arising from a Single Transaction

In May 2021, the IASB issued amendments to IAS 12 Deferred Tax related to Assets and Liabilities arising from a Single Transaction, that clarify the accounting of deferred tax on transactions such as leases and decommissioning obligations. The main change in Deferred Tax related to Assets and Liabilities arising from a Single Transaction (Amendments to IAS 12) is an exemption from the initial recognition exemption provided in IAS 12.15(b) and IAS 12.24. Accordingly, the initial recognition exemption does not apply to transactions in which equal amounts of deductible and taxable temporary differences arise on initial recognition (this is also explained in the newly inserted paragraph IAS 12.22A). The amendments to IAS 12 are applicable for annual periods beginning on or after January 1, 2023. The amendments are not expected to have a material impact on the Group.

 

 

4.
Scope of consolidation

 

Stevanato Group S.p.A. is the parent company of the Group and it holds, directly and indirectly, interests in the Group’s main operating companies. There are no changes in the scope of consolidation for the periods presented in this Interim Report and the Group’s scope of consolidation is as follows:

 

Subsidiaries

The interim condensed consolidated financial statements of the Group include the following companies directly or indirectly controlled:

 

8


 

 

 

 

 

 

 

 

 

 

 

 

% equity interest

Name

 

Segment

 

Description

 

Country of incorporation

 

Type of control

 

Mar. 31,
2022

 

Dec. 31,
2021

Nuova Ompi S.r.l.

 

Biopharmaceutical

 

Production of drug containment systems and development of integrated solutions for the pharmaceutical industry

 

Italy

 

Direct

 

100%

 

100%

Spami S.r.l.

 

Engineering

 

Production plant and machinery

 

Italy

 

Direct

 

100%

 

100%

Stevanato Group International a.s.

 

Holding

 

Service/Subholding company

 

Slovakia

 

Direct

 

100%

 

100%

Medical Glass a.s.

 

Biopharmaceutical

 

Production of drug containment systems

 

Slovakia

 

Indirect

 

99.74%

 

99.74%

Stevanato Group N.A. S. de RL de CV

 

Biopharmaceutical

 

Service company

 

Mexico

 

Indirect

 

100%

 

100%

Ompi N.A. S. de RL de CV

 

Biopharmaceutical

 

Production of drug

 

Mexico

 

Direct

 

30.76%

 

30.76%