AVAX Group announces the financial results for 2023, a year in which large new projects were added and are expected to lead to substantially improved financial performance in 2024 and the medium term. To this extent, management will propose to shareholders at the upcoming Annual General Meeting the distribution of a gross dividend of €0.03 per share, which corresponds to 44.4% of net profits from continuing activities in 2023.

IMPROVEMENT OF FINANCIAL RESULTS

According to the financial statements for 2023, the Group's consolidated turnover from continuing operations, excluding the discontinued operations of subsidiary Volterra SA, increased 12.6% to €453.5 million compared to €402.7 million in 2022. The relatively low turnover in 2023, despite the high workload, is due to the ongoing delays in the start of some new projects that have been added and signed as early as 2022. Those delays are gradually being overcome, and the new projects are already moving into the implementation phase with increased profit margins.

The Group's earnings before taxes, financial expenses and depreciation (EBITDA) from continuing operations amounted to €60.8 million in 2023, compared to €58.2 million in the previous year. Parent company EBITDA amounted to €53.3 million in 2023 versus €89.3 million in 2022, a year in which a capital gain from the sale of assets had been recorded.

Profit after tax from continuing operations at Group level amounted to €10.0 million in 2023 (€8.8 million at Company level) compared to €12.9 million in 2022 (€50.8 million at Company level), when a €9.4 million capital gain from the sale of a participation had been recorded.

The performance of the construction segment improved, with profit margins widening. Specifically, the construction EBITDA margin increased to 6.2% in 2023 from 4.7% in 2022, a trend which is expected to continue as the pace of implementation of new projects accelerates.

FURTHER DEBT REDUCTION

The Group's total bank debt dropped to €259.4 million at the end of 2023, following repayments of €47.6 million. million within the year, while net debt fell €37.9 million to €182.5 million at the end of 2023. Overall reduction in net debt since the end of 2020 amounts to around 60%, resulting in a broadly unchanged charge for Group financial cost of €20.8 million in 2023 compared to €20.7 million in 2022, despite the rise in lending rates.