Leonardo's market cap, dividends, sales and earnings in 2020-2021

  •   DEHOUI Lionel

The Leonardo Group is an Italian company active in the aerospace and defence sector. It is one of the European leaders in the design, manufacture and marketing of aerospace defence systems. In 2020, the company suffered from the Covid-19 pandemic, which affected the entire aerospace sector. This has not been without consequences for its financial performance. Discover the main points to remember about the group's annual results and those recorded for the first three quarters of the 2021 financial year.

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Leonardo's market cap, dividends, sales and earnings in 2020-2021

Full year 2020 performance

For fiscal year 2020, the Leonardo Group reported annual revenues of €13.41 billion, up from €13.8 billion in 2019. It reported a year-on-year decline of 2.7%. This decline is mainly due to the negative effects of the Covid-19 pandemic. However, the company's military arm showed great resilience in the face of the health crisis.

This enabled the group to limit the impact of the epidemic on its results. For the full twelve months of 2020, the company posted a net profit of €243 million, compared to €822 million in 2019. This was a sharp drop of 70.4% year-on-year, again due to the coronavirus epidemic.

The result was also lower than the market forecast. The market was targeting 346 million euros for the year. In the fourth quarter alone, the group's net profit was 106 million euros, down 70.3% year-on-year. It is also below market estimates (242 million euros).

In 2020, the group recorded an Ebitda (operating profit) of 938 million euros, compared to 1.3 billion euros a year earlier. 1.3 billion a year earlier. It was down 25% year-on-year. 517 million, down 55% on the previous year.

As of 31 December 2020, the company's order backlog reached EUR 35.5 billion. This gives the company a two and a half year production guarantee. At the end of the financial year, it had a positive operating cash flow of EUR 40 million.

 

Business update for the group in the first quarter of 2021

In the first quarter of 2021, the health crisis continued to impact Leonardo's business. This has plunged the company's accounts into the red. Indeed, in the first three months of this year, the group posted a net loss of 2 million euros, compared to a loss of 59 million euros a year earlier in the same period.

The loss in Q1-2021 was mainly due to the impact of the Covid-19 pandemic. On the other hand, the group said that the results for this quarter were in line with its expectations, as orders continued to be at a good level. New orders reached €3.42 billion, in line with Q2-2020.

At the end of March 2021, the group's order backlog amounted to €36.4 billion. In the quarter, the Italian aerospace and defence giant recorded revenues of €2.79 billion, up 7.7%. Ebitda more than doubled to 95 million euros.

At the end of the quarter, the group had net debt of €4.6 billion, up 5.6%.

 

Results for the first half of 2021

Despite the health crisis, the results for the first half of the year were strong. In the first six months of the 2021 financial year, Leonardo's turnover amounted to EUR 6.34 billion, an increase of 7.9 %. The group also benefited from the gradual recovery of the market, which had been affected by the Covid-19 epidemic.

This enabled the company to triple its net profit in the first half of 2021. It reached 117 million euros. This result is higher than the market expected. The market was expecting 116 million euros for this period. Ebitda increased by 37% to EUR 400 million in the first half of the year.

New orders for the entire six months amounted to €6.7 billion, an increase of 9.5%. At the end of June 2021, the company had an order book of €35.9 billion. In H1-2021, net debt was €4.61 billion, down 9.1%.

 

Group business review in Q3 2021

In the third quarter of 2021, Leonardo continued to turn around its accounts. In this period, the group generated a net profit of 52 million euros, down 32%. It also fell short of market expectations, which were for a result of 94 million euros. For the first nine months of this year, it reached 229 million euros, up 67.2% year-on-year.

The company's nine-month turnover was 9.6 billion euros, an increase of 6%. 607 million, an increase of 22.1%. New orders between January and September amounted to 9.3 billion euros, an increase of 8.9%. The order backlog thus reached 35.23 billion euros at the end of the quarter.

 

About Leonardo's dividend and market capitalisation

Due to the 2020 financial statements, the Leonardo Group has decided not to pay a dividend to its shareholders for this year. On the other hand, in terms of the equity markets, the company is notable for its presence on the stock market. It is one of the largest market capitalisations in Italy.

As a result, the company is included in several major and minor stock market indices. This is the case of the FTSE MIB, the country's benchmark stock market index. At the beginning of December, the company had an estimated market capitalisation of over 3 billion euros.

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