ILSA approves its 2019 financial statements

(Arzignano, VI) Last July the 21^st ILSA’s shareholders approved the 2019 consolidated financial statements of ILSA and its subsidiary ILSA Mediterraneo S.p.A. The two companies make up the Italian part of the ILSA Group which also include ILSA Brasil Ltda, based in the Brazilian state of Rio Grande do Sul and the Chilean company, ECR, based in Santiago de Chile.

The two Italian companies consolidated a turnover of 25,8 million euros, recording a 11.6% increase compared to 2018 and a net profit of 2,14 million. EBITDA is 4 million euros, confirming the health of the group whose headquarters have been in Arzignano, in the province of Vicenza (Northeast of Italy) since 1982.

The double-digit growth was possible thanks to the excellent response of international markets which showed a + 22.6% compared to the previous year, thus confirming the Italian leadership in the global organic farming market. Among the most successful products are plant and animal origin biostimulants which have shown a 46% increase in sales on annual basis.

ILSA is one of the leading groups in the biostimulants global sector. These are special products of natural origin that allow crops to counteract several stresses, thanks to their effect on the self-defence/secondary metabolism of plants. Biostimulants are strategic technical inputs for today's agriculture which is challenged to support world population growth.

ILSA was founded in 1956 and produces circa 100,000 tons of solid and liquid fertilizers and special technical inputs every year, using renewable sources and both animal and vegetable origin by-products,  advanced extractive techniques such as enzymatic hydrolysis and supercritical CO2.

In detail, sales increased by 10.3% in Italy, 29.1% in other European countries, 38.3% in Central and South America countries and 42.9% in the Middle East and Africa. Asian and Oceania markets are stable.

• Financial structure

In 2017 the ILSA Group was bought by the Biolchim SpA Group. Biolchim SpA Group is 91.6% controlled by Galileo sarl, a company jointly owned by NB Renaissance and Checkers Capital investment funds with the remaining 8.4% owned by the management. In 2019, the Italian group has confirmed its world leadership postition in the biostimulants sector with a consolidated turnover of 116 million euros, registering an increase of 5.5% compared to 2018 and an EBITDA of 23,5 million euros, with a 8.6% growth over the previous year.

ILSA board of directors has been reconfirmed for the three-year period 2020-2022.

Members are:

• Paolo Girelli (CEO)
• Barbara Piona
• Leonardo Valenti
• Marco De Simoni
• Philippe Bernard Herve ’Guerin

• The first half of 2020

Growth in foreign markets is continuing in the first six months of 2020 with +18% compared to the same period of 2019. In particular, Germany, Holland, Chile and the Dominican Republic agricultural markets proved to be driving forces of this growth. Considering that registrations of other products in Saudi Arabia, Colombia, Costa Rica, France, Egypt, Romania and Serbia are at a final stage, a further acceleration of exports in the second half of 2020 is likely.

Therefore, the Regulatory office continues its intense activity with new registrations of ILSA products in foreign markets. These are products which favour a sustainable and efficient agriculture. In fact, 52% of the nutrition products and 58% of the company biostimulants are allowed in organic farming.

ILSA therefore has many certifications that are strategic for organic farming markets.

The first half of 2020 recorded a result in line with budget forecasts despite the global health emergency. Stress tests applied to the business show that the company is solid and able to face the second half of the year, despite the difficulties associated with the persistence of the crisis caused by the COVID-19 virus.

• Research

 Regarding R&D activities, the Biopol project which ended last year is worthy of mention. It successfully created new plant-based hydrolysates to be used as ingredients for low impact chemical products for the leather tanning process.

The 3S_4H - Safe, Smart, Sustainable food for Health - project is underway and will end in 2021. It aims to study new biostimulants starting from agri-food chain by-products and analyzing their effect on the chemical-physical and organoleptic characteristics of some vegetable species.

Extraction of new bioactive substances for cosmetics and nutraceutical uses with sophisticated and sustainable technologies is at an advanced stage.

• Energy and environment

The ILSA group is particularly attentive and committed to energy issues and environmental issues.  

ILSA has held the UNI EN ISO 14001:2004 environmental certification for 10 years and has carried out the PEF/OEF Product and Organization Environmental Footprint study, which represents a best practice case in controlling the environmental footprint typical of the thermal and enzymatic hydrolysis processes and of the sector.

Containment of energy costs are also paramount. ILSA was the first Italian SME to obtain certification for its energy management system according to the UNI EN ISO 50001: 2011 standard.