Italy’s De Nora lifts 2022 guidance after core profit jumps

By Francesca Landini and Francesco Zecchini

MILAN (Reuters) – Newly-listed Italian electrode maker Industrie De Nora on Thursday upgraded its guidance for this year’s profits and sales after its adjusted core profit more than doubled in the first half.

Milan-based De Nora last month braved volatile markets amid inflation and interest rate fears in a rare European stock market listing. Cornerstone investors comprising Italian gas grid operator Snam and ERG owners the Garrone family supported the initial public offering (IPO).

The company said adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) came in at 102 million euros ($104 million) in the period, up from 45 million last year.

“The company expects to continue growing across all business segments, pursuing the challenging new targets for 2022,” CEO Paolo Dellachà said in a statement.

De Nora guided for revenue at around 900 million euros and an adjusted EBITDA of between 185 million and 195 million euros

It had previously forecast revenue of 830-880 million euros and an adjusted core profit of 155-165 million euros.

By 0740 GMT shares in De Nora rose more than 5% to 14.49 euros. That compares with an IPO price of 13.5 euros per share, which valued the company at 2.72 billion euros.

The group said it is among the six Italian companies selected to participate in the first important project of common European interest (IPCEI) on hydrogen approved by the European Commission.

De Nora’s electrode technologies business, which accounts for 55.5% of sales, posted revenue of 228 million euros, up 57.4% in the period.

Sales at the waste water treatment segment rose 65.9% to 175.7 million euros, accounting for 42.8% of total sales.

The energy transition division recorded a 130% growth in the first half, with revenue of 6.9 million euros.

($1 = 0.9845 euros)

(Reporting by Francesca Landini and Francesco Zecchini, editing by Maria Pia Quaglia and Valentina Za)