“2022 will be remembered as an exceptional year which probably cannot be repeated” stated Giuseppe Pasini, CEO of Feralpi Group, at a press conference held in Lonato del Garda, Brescia, on July 26.
Feralpi Holding’s 2022 consolidated financial statements show exceptional results with revenue equivalent to €2.398 billion against €1.928 billion in 2021, with an increase of 24.4 percent from 2021 and up 93.6 percent from 2020. Production value reached €2.535 billion.
The strong propensity towards markets outside Italy was confirmed. Revenues generated abroad accounted for 63.57 percent of the total, up from the previous year (58.98%). In general, sales revenues were greater in the group’s core markets (Italy, Germany, France, Switzerland, and Austria).
The financial performance reached the greatest levels ever in the group’s history: EBITDA amounted to €0.501702 billion compared with €0.273862 billion in 2021. Feralpi said it is committed to reducing greenhouse gas emissions through investment aimed at cutting direct (Scope 1) and indirect (Scope 2 and 3) emissions. Regarding the self-production of renewable energy, Feralpi will be investing over €200 million between 2023 and 2027. “We chose the hardest route with a concrete commitment to decarbonized steel, thanks to the approval of solid investment in the diversification of energy sources with the establishment of Feralpi Power On and the electrification of our production facilities,” stated Giuseppe Pasini. Overall, extra investment in the 2023-2027 period will exceed €500 million. In the environmental field, 96 percent of production came from recycled steel, an increase as compared to 93 percent in the previous financial year. Waste sent to recovery, recycling and reuse out of the total waste produced by steel mills amounted to 88 percent.
In terms of human resources, at the end of the 2022 financial year the group had 1,856 full-time employees (931 in Italy and 925 abroad), compared with 1,749 full-time employees in 2021.
About the future, Feralpi commented that the uncertainties due to high inflation, the significant increase in interest rates and the consequences of Russia’s invasion of Ukraine are now characterizing the steel industry. These factors have a negative impact on the residential construction market, while the infrastructure business remains strong in many markets, thanks to the focus of governments on infrastructure projects. As a result, forecasts for 2023 suggest a reduction in revenue and profit with respect to 2022, a year in which the company registered results that constitute a record in its history.
These forecasts are based on the absence of significant changes in the crisis regarding the war in Ukraine and a scenario of ongoing consolidation.