Wire and Tube 2024: uncertainties and positive trends
10 May 2024
Morandi Steel: stable volumes in 2024, but prices decline
17 December 2024
Last year’s turnover at 14.5 million euros.
Investments in digitalization and customer services
Addressing market challenges and customer needs with innovative solutions through investments in digitalization, innovation, and services. This was the course charted by Morandi Steel in 2023—a year of transition and progress along the strategic journey of “servitization”.
President Emanuele Morandi highlighted some key points: “Last year, we underwent a significant internal reorganization. We invested in innovation by implementing a new ERP (Enterprise Resource Planning) system, which required considerable effort from our entire team to integrate into our company operations. It will take some more time to become fully operational and start delivering its full benefits. Additionally, we expanded our workforce to 26 employees and made substantial investments in training. Overall, our investments in 2023 surpassed 500,000 euros.”
Morandi Steel closed 2023 with a turnover of 14.5 million euros, reflecting a 20% decline from the 18.1 million euros reported in 2022. This decrease was primarily due to a 12% drop in distribution prices and partially to a 9% reduction in sales volumes. EBITDA decreased from 1.7 million euros to 1.1 million euros, while the gross operating margin remained steady. “Despite this, our profitability remained strong, underscoring the effectiveness of our strategic direction,” stated President Morandi.
For 2024, the company has set challenging goals, particularly focused on enhancing the quality of our processing to boost the revenue share of processed materials compared to raw trading. We are also striving to improve the productivity and efficiency of our plants. In essence, we are continuing on the path we outlined a few years ago: the ‘formidable challenge of servitization’” concluded Emanuele Morandi.
The decision to prioritize increasing the share of processing and offering high value-added services has helped the company mitigate market weaknesses, as noted by Riccardo Taroni, Sales Manager of Morandi Steel: « “In the first five months of the year, we achieved approximately a 30% increase in quantities sold compared to the same period in 2023, with a +10% compared to our budget. Demand remains cautious, and prices have not risen as the sector anticipated. However, thanks to the higher revenue share from processing and services, we are outperforming the industry average”.
These indicators give us reason to be optimistic about the remainder of the year: “We are confident that demand will pick up in the coming months, and we are particularly hopeful about the benefits that the National Recovery and Resilience Plan (PNRR) can deliver, with the unblocking of construction sites and the initiation of new projects. Our goal is to continue growing and meet the ambitious objectives we have set. We will achieve this through new investments and by attracting the right talent, with a strong emphasis on training and strengthening our workforce” concluded Riccardo Taroni.
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