Italy’s Dexelance Unveils 1M Euro Share Buyback as Net Profit Falls in Q1
The first Italian design firm to list its shares on the Milan Stock Exchange plans to buy back shares as it invests in fortifying its galaxy of brands and increase market share.
MILAN — Dexelance, which recently changed its name from Italian Design Brands, said it will raise up to 1 million euros in a share buyback program.
In a statement Monday, the firm said the purpose of the buyback is in part to facilitate trading in the shares themselves in times of low liquidity and also equip the company with a portfolio of treasury shares to be used for strategic transactions. The buyback program will run from Tuesday to Dec. 31.
Having listed on the Milan Stock Exchange in an unpredictable market, its shares are down slightly since the IPO. In May 2023 the shares debuted at 10.88 euros and were at 10.82 euros at the close of trading in Milan on Monday.
This hasn't stopped Dexelance from proceeding with its mission to expand. The decision to change the company's name in
March was to represent its plans to look further afield than just Italy for potential acquisitions.
Also in March, Dexelance chief executive officer Andrea Sasso said the company's IPO raised its profile and it was in talks with many potential acquisitions. “We are working on it and are very strong with regard to our M&A agenda… the stock exchange increased communication with more brands,” Sasso added, noting that they were not ready to reveal anything definitive. Italian Design Brands managing director Giorgio Gobbi stressed, however, that the company is not planning a transformational acquisition in 2024. “We hope that at least one will come on board, but that can occur at the earliest in 2025, not now.”
The first Italian design group to list on the Milan Stock Exchange is home to 11 companies and 14 brands, and counts North America as its secondmost important market in terms of sales. Dexelance is the parent company of upscale brands Gervasoni, Meridiani, Saba Italia, Gamma Arredamenti International, Turri, Binova and Cubo Design kitchens, and modern lighting brands Davide
Groppi, Flexalighting and Axolight.
In the first quarter of 2024, Dexelance saw revenues rise 10.4 percent to 72.7 million euros compared to the same period last year, helped in part by the recent acquisition of Axolight and Turri.
Its luxury contract business was a main catalyst for sales in the three-month period ended March 31 and was up 7.6 percent in the first quarter. Its net profit fell to 0.3 million euros compared to 1.4 million euro in 2023.
During a conference call on Monday with analysts, Dexelance's chief financial officer Alberto Bortolin said profitability is down due to the firm's investment plans underway. "Profitability was lower than the previous period because we are investing in projects and people and commercial activities around the world, not only the U.S., not only Milan."