Based on the first preliminary results on the Group’s activities and the first forecasts on 2019, Azimut expects to close 2019 with the best consolidated net profit in the history of the Group, ranging between 360 and 370 million euros.
The cumulative dividends distributed to shareholders over the 5 years of the plan, including what will be proposed to the BoD convened for March 5, 2020, will be at least 7,8 euros per share. As a consequence, the average payout throughout the plan will be greater than 90%, well above the envisaged target, resulting in a cumulative average yield of 44%. With this latest result, all targets indicated in the 5 year business plan have been achieved for the third consecutive time since 2004.
In 2019 the Group recorded 4.600 million euros of Net Inflows, bringing total assets to exceed 59.000 million euros (vs. the 50.000 million euros plan and + 16% compared to the end of 2018). Furthermore, the target set for International AuM at the end of the plan has also been fully achieved and exceeded.
In fact, at the end of 2019, the AuM from non-domestic businesses reached 29% of Total, against the 15% budgeted in the plan. EBITDA from the international operations in 2019 is estimated to be between 50 and 55 million euros (ca. + 53% compared to 2018).
Thanks also to the above results, the Group estimates under normal market conditions, to achieve a net profit of at least 300 million euros in 2020, raising its initial range of 250-300 million euros indicated during the Investor Day of June 4, 2019. This positive delta is expected to be reached thanks to growth across all business lines: distribution in Italy, alternatives and International activities.
The alternatives project continues to progress well. After the success of the largest Italian event dedicated to private markets (Azimut Libera Impresa EXPO), net inflows on products launched in the last quarter of 2019 stands at c. 450 million euros, bringing the total AuM in the private markets space to exceed 1.000 million euros.
Pietro Giuliani, Chairman of the Group, comments: “In 2019 we generated a net weighted average performance to clients of c.+ 8.5%, above the Italian industry. There is no better way to celebrate Azimut’s 30 year anniversary: all targets of our latest five-year business plan have been successfully completed for the third consecutive time.
We expect 2019 to close with a net profit between 360 and 370 million euros, marking a new historical record for the Group. Also our share price closed 2019 with a record: + 128% performance during the year, making Azimut the best performing stock amongst FTSE MIB members. The trust we receive every day from customers and shareholders makes us confident to continue with the same pace also in 2020, and achieve a net profit of at least 300 million euros.
Our international business has seen another sharp increase in 2019, with AuM accounting for almost 30% of total assets and an expected EBITDA of 50 to 55 million euros. Lastly, we are satisfied with the launch of the first products in the private markets area, democratizing this asset class and allowing us in just a few months to exceed € 1 billion of AUM in this segment.”
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