A2A, Italy's largest company, raises its profit forecast for 2024 and dividend growth through 2035
A2A, an Italian company, raised its core and net profit forecasts for 2024 on Tuesday. The company reported a net profit increase of around 70% in the nine-month period to 713 millions euros ($757.9million).
The largest regional utility in the country also increased its planned annual dividend growth rate to at least 4%, from 3%.
A2A expects a core profit of 2,28-2,32 billion euros this year compared to its previous guidance of 2,18-2,22 billion euros. Net profit is expected to be between 800 million and 820 million euro, which is higher than the previous guidance of 700-720 million euro.
In a press release, Renato Mazzoncini, CEO of the company, said that the higher profit would enable the group to "support competition" and accelerate the development strategic infrastructures for Italy's eco-transition.
A2A increased its targets in July. This is the second increase of its 2024 goals for both metrics. A2A said that despite a 17% decline in revenue for the nine-month period to 9.1 billion euro due to lower energy prices, its operating margin increased thanks to higher renewable production, an increase from energy retail, and an improvement of financial structure.
The company has updated its goals for its 2024-2035 Industrial Plan, confirming that investments will be 22 billion Euros and stating it now expects its core profit in 2035 to be 3.3 billion Euros versus over 3.2 billion euro when it published the original plan in March.
The company also announced targets for core profits in 2025, which range between 2.17 billion and 2,20 billion euros and a net profit that is 680-700 millions euros.
(source: Reuters)