Next challenges ask for capital solidity: discover Errecom’s path

The focus of this year’s edition is to highlight the economic and financial performance of the main companies of Brescia following the impact of Sars-CoV-2. Turnover, value-added, net profit and capital investment are among the main strengths of the 1,000 companies in Brescia which have managed the pandemic yet with noteworthy results.

Compared to other Italian companies, those in Brescia present more comforting data in 2020, first and foremost turnover: a decrease of “only” 7.4% compared to 13% for Italian companies. In fact, not only has the turnover of the local companies decreased at a lower rate than the Italian average, but in some cases, it has even grown. Although the pandemic has been a source of crisis for many businesses, for others it meant a new beginning and an opportunity to relaunch the business through new operational and strategic models. As stated by Mr Teodori, professor of Business Administration at the University of Brescia, it appears that as many as 35% of the companies in Brescia have increased their revenue and that 25% have boosted, at the same time, the EBIT. Errecom belongs to both categories: between 2019 and 2020 the chemical company’s turnover rose from €9,762,000 to almost €13,000,000, recording a growth of over 33%, while EBIT more than tripled, from €462,000 to €1,489,000.

Incredible numbers, that make one wonder how such explosive growth was achieved. Ivan Fogliata, financial analyst and member of the Board of Directors of Alto Adige Südtirol Bank AG, explains: “The growth in volumes and profitability of Errecom SPA is the result of a combination of organic growth and increased margins. There is a significant operating cash flow that Errecom has promptly reinvested in the development of the company’s assets”.

In fact, Errecom owes much of its success to the quality growth strategies based on expanding volumes and margins. In the last two years, the company has reinvested all its cash flow in the brand, in reorganising its operating sites, in improving the working environment and, finally, in technological innovations for the production department. Innovation, this one, which bears the name of Industry 4.0: the project launched by Errecom in 2017 to plan a technological mix of automation, computerisation, connection, and programming. From the new filling line for liquid products, which allows a significant increase of productivity reaching 3000 pcs/h for bottles up to 1 litre, to the cartridge machine, which guarantees the production of 500 pcs/h. Automation, efficiency, and quality. With Industry 4.0, Errecom’s production process has become even smarter, more efficient, and sustainable: reduced production costs, 100% product compliance, energy savings.

Significant investments also regard the expansion of Errecom’s headquarters, with the purchase of more than 5,000 square metres. Not only this will improve the production layout and allow the R&D department to grow exponentially but will also create an even more employee-friendly working environment. An essential asset that will guarantee greater productivity with positive results in terms of company profits. This strategic choice will also help to further enhance the company’s brand that, by the way, is one of the biggest strengths of Errecom and was recently estimated to be worth around 1.3 million euros. With this regard several projects have been introduced over the last two years: from the newly renovated Print Lab, which ensures accurate and meticulous care of the image, to Errecom Academy with masterclasses, webinars, and on-site training courses for HVAC/R technicians. Further brand awareness opportunities come from Errecom Brand Ambassador: a project designed for highly qualified technicians, who not only are loyal to the brand but also shares Errecom’s values and philosophy.

These are the key points that, over the last three years, have helped to make Errecom the strong, cutting-edge company we know today.

And above all, it is on its capital solidity that future challenges will be based. The commitment to environmental, economic, and social sustainability is growing. Specific projects that represent the obvious evolution of a corporate mindset that, particularly in 2021, was rewarded with the Sustainability Award and recognised with the legality rating. To increase transparency, in addition, Errecom SPA’s financial statements are audited by an external company.

Automation and innovation will, of course, continue to play a key role, but it will continue to be people who make the real difference at Errecom. In addition to the internship agreement with the University of Brescia, there is also the definition of new roles and the consequent expansion of the workforce.