Main indicators 

• Gross Operating Margin (EBITDA) in the amount of EUR 368 million (+2% compared to EUR 363 million as at 31/03/2022). The EBITDA increase is mainly driven by the recovery of the Market BU's marginality, the consolidation of SEI Toscana, and organic growth, in a context characterised by lower energy volumes (EUR -34 million) and higher costs due to inflation. 
• Group net profit attributable to shareholders of EUR 135 million (+15% compared to EUR 118 million as at 31/03/2022). The 2022 result is negatively impacted by the Solidarity Contribution of at EUR 24 million. • Net financial debt at EUR 3,716 million (+11% compared to EUR 3,347 million as at 31/12/2022). The temporary increase in net working capital and the investments made during the period contributed to the growth in net debt. 
• Technical investments and energy efficiency works amounted to EUR 258 million, up 34% compared to the first quarter of 2022, with waste treatment investments doubling thanks to the construction of three new plants. 
• Iren's sustainable growth continues, with the majority of performance indicators in line with the Plan's forecasts and improved compared to the first quarter of 2022: decrease in the carbonic intensity, +44% of material recovered in the Group’s plants, +70% production of biomethane, energy efficiency and service quality increased sharply, with a -5% drop in water withdrawals per inhabitant per day.

The Board of Directors of IREN S.p.A. today approved the consolidated financial statements as at 31 March 2023.

"The positive results that have just been approved confirm the financial solidity of the Iren group, guaranteed by a balanced and solid business plan, that we are following. The positive trend, also supported by the contribution of SEI Toscana (a company active in waste collection consolidated since last July), underlines Iren's ability to extract value from corporate consolidation - says Luca Dal Fabbro, Chairman of Iren - The success of recent acquisitions in renewable capacity reinforce the Industrial Plan aimed at decarbonisation and circular economy."

“Iren Group's growth path continues, supported by technical investments, which grew by 34% compared to the first quarter of 2022,” - affirms Gianni Vittorio Armani, Chief Executive Officer and General Manager of Iren - “The positive results are based above all on a recovery of Market margins compared to last year, despite the reduction in consumption (-19%) that had a significant impact on our performance. The careful financial discipline implemented by Iren is validated by the recent improvement of the rating by S&P. Confident of the industrial development expected in the coming quarters, we confirm the guidance for 2023, which foresees a 6% growth in margins, in line with the plan.”

IREN GROUP: CONSOLIDATED RESULTS AT 31 March 2023

Consolidated Revenues as at 31 March 2023 amounted to EUR 2,019.8 million, down -7.6% compared to EUR 2,185.7 million of the first quarter of 2022. The main factors contributing to the drop in turnover were lower energy revenues, which were influenced by lower sales volumes (EUR 570 million approximately), partly related to milder weather, partially offset by higher commodity prices (approximately +320 million). Also contributing to the positive change in turnover are energy efficiency activities such as energy upgrading and the renovation of buildings, favoured by tax breaks (approximately +46 million). Finally, changes in the scope of consolidation affect revenues by approximately EUR 70 million and refer to the consolidation of Alegas (EUR +22 million, present from April 2022) and of SEI Toscana (EUR +48 million, from July 2022).

Gross Operating Profit (EBITDA) amounted to EUR 368.5 million, an increase of +1.6% compared to EUR 362.8 million for the first quarter of 2022. The main factors influencing the margin for the period are:

• Marketing activities for both electricity and gas benefited from a significant recovery in unit margins following the reversal of the trend in the energy scenario, with a positive impact on the margin of approximately EUR 37 million. On the other hand, the first quarter of 2023 is characterised by dynamic of strong reduction in energy volumes with a negative impact on the margin of approximately EUR -34 million. In particular, mild weather and a reduction in consumption due to “high energy bills” led to an important reduction in gas and district heating sales. There was also a reduction in electricity production resulting from the Turbigo plant not being fully operational due to a fault on the plant’s turbine. 
• The consolidation of SEI Toscana (EUR +7 million), which operates in waste collection, and the organic growth related to increases in tariff revenues as a result of the development of investments in network services (energy and water) and the commissioning of the Reggio Emilia treatment plant for the organic fraction of waste (Forsu). Also contributing positively is the development of activities related to the energy upgrading of buildings. 
• Lastly, the margin for the period was impacted by higher costs arising from the revision of hydroelectric fees, an increase in costs due to inflationary effects that will be recovered in future tariff periods, and the elimination of the accounting effect of contingent assets related to energy efficiency certificates for the Turin North plant that are no longer repeatable. 

Overall, the increase in margin with reference to the individual business units is broken down as follows: Waste Management (+4.2%), Energy (-18.4%), Networks (+1.6%) while the Market business unit has seen a strong improvement (+83.4%), the latter trend to be considered together with the decrease in marginality of the Energy BU, in the logic of integrated management of the energy supply chain (production and marketing of electricity) that presents a result that is substantially in line with the first quarter of 2022.

Operating Profit (EBIT) amounted to EUR 210.3 million, a decrease of -6.5% compared to EUR 225 million for the first quarter of 2022. Amortisation and depreciation for the period rose by EUR 18 million, due to the start-up of new investments and expansion of the consolidation scope, and to allocations to the provision for impairment of receivables substantially in line (approximately EUR +1 million).

Group net profit attributable to shareholders amounted to EUR 135.0 million, an increase (+14.6%) compared to the result recorded at 31 March 2022. It is recalled that the 2022 result included the negative impact of the Solidarity Contribution of EUR 24 million.

Net Financial Debt stood at EUR 3,716.3 million as at 31 March 2023, an increase (+11.0%) compared to the 31 December 2022 figure. In this regard, there was an absorption of working capital of EUR 345 million due to higher investments in the fourth quarter of 2022 compared to those in the first quarter of 2023 (EUR 120 million), the seasonality effect of commercial working capital (EUR 105 million), the impact of the change in the invoicing method for waste collection services (EUR 60 million) and gas payment terms not yet normalised (EUR 60 million). There were also EUR 130 million of tax credits mainly related to the Superbonus 110% projects and an investment flow of EUR 198 million (EUR 191 million of technical investments in the period and EUR 7 million of inorganic investments). At least EUR 350 million of net working capital effects are expected to be absorbed by the end of the year.

Gross investments made in the period amounted to EUR 265 million, down (-29.8%) from EUR 378 million in the same period of 2022, of which EUR 191 million in technical investments (+36%), EUR 7 million in investments relative to M&A operations (Romeo 2, Amter and the minority holdings of Futura) and EUR 68 million in contributions related to energy efficiency projects (+30%). It is recalled that the acquisition of Puglia Holding's photovoltaic parks was finalised in the first quarter of 2022. 

The press release continues in the attached document.