Corporate Credit Rating 2025 for RONCADIN SPA: B1+ (First Issuance)

modefinance has published on its website the Corporate Credit Rating (Solicited) of RONCADIN S.P.A. SB, assigning a rating of B1+ (First issuance). The analysis highlights that the company has an adequate financial position, appearing capable of withstanding adverse economic conditions in the medium and long term.

RONCADIN S.P.A. SB (hereinafter also referred to as the "Company") is an Italian company located in Meduno (PN) that was founded in 1992. It specializes in producing high-quality frozen pizzas for large-scale distribution, operating both under its own brand and as a private label. In 2021, the Company became a Benefit Corporation, reinforcing its commitment to sustainable and responsible development. By 2024, it achieved the prestigious B Corp certification, which recognizes companies that meet the highest standards of environmental, social, and governance performance. Currently, exports account for approximately 75% of the Company's turnover, with Italy being its primary market, followed by Germany, the United Kingdom, and the United States. In 2024, RONCADIN S.P.A. SB further strengthened its international presence by opening a new production plant in Chicago. This strategic facility will enhance the Group's production capacity and allow it to fully capitalize on the opportunities presented by the North American market.

At the end of the 2024 financial year, Roncadin S.p.A. SB affirmed its strong economic and financial position, characterized by a balanced capital structure and effective financial leverage management. The ratio of equity to debt remained stable, as evidenced by a low leverage ratio of 1.65. Although financial leverage is still relatively high at 1.00, there has been a positive trend compared to previous years, indicating progressively more efficient financial management. The increase in the Net Financial Position (NFP), from €32.50 million to €38.60 million, is primarily due to significant investments made during the year and is deemed sustainable, supported by strong operating margins. The NFP/EBITDA ratio stands at 2.19x, indicating the Company's ability to generate enough resources to cover its debt obligations. In 2024, consolidated sales revenues experienced significant growth of 16.3% year-on-year, surpassing the €200 million mark. Continuous improvements in operating efficiency contributed to a rise in EBITDA, which increased from €14.14 million to €17.62 million, reflecting an operating margin of 9% of turnover. Net profit reached €7.60 million, marking a substantial rise compared to previous years, despite the ongoing increases in depreciation and financial charges. Currency management also had a positive impact on the results, generating exchange gains of €1.54 million. In terms of profitability, the Company has shown consistent improvement in key indicators, achieving highly satisfactory levels in 2024 for both return on equity and return on invested capital. This confirms the strength and sustainability of its business model.

The Company has a robust governance and control structure. Management is overseen by a well-composed Board of Directors, while control functions and the statutory audit of the financial statements have been assigned to a Board of Statutory Auditors and a reputable auditing firm, respectively. Since 2011, the Company has also implemented an Organisation, Management, and Control Model in accordance with Legislative Decree 231/2001. Roncadin S.p.a. SB, which is wholly owned by its sole shareholder Kanada S.r.l., holds controlling interests in two Italian limited liability companies and in Roncadin Holding USA Holding Co. This holding company, in turn, manages the production and real estate branches of the Roncadin group in the United States.

Roncadin S.p.a. SB demonstrates strong performance compared to its sector peers, ranking among the largest companies in terms of turnover achieved in 2023. While solvency and profitability are generally adequate, they remain slightly below the median levels for the industry. Over the four-year period from 2021 to 2024, the reference peer group has shown overall solid economic and financial conditions. Solvency indicators have remained at satisfactory levels, ensuring a stable financial balance. Following a slowdown in 2022, 2023 experienced a significant recovery in profitability, with key indicators showing notable improvement and reaching particularly positive levels.

In 2024, the frozen pizza sector in Italy experienced significant growth, reaching a value of approximately €570 million in large-scale distribution. This marks an increase of 4.7% in value and 5.8% in volume. On a global scale, the market is valued at roughly $21 billion and is projected to reach $40 billion within the next decade. In 2025, the United States continued to maintain its leadership in the global economy, with solid growth reflected in a GDP increase of 2.03%. However, rising inflation, driven by expansionary fiscal policies and trade restrictions, posed challenges. Public debt and political uncertainty remained critical issues. While the US continued to be a strategic partner for Italy, increasing tariffs could adversely affect exports, especially for small and medium-sized enterprises (SMEs). In Europe, growth was more subdued, with the euro area GDP increasing by only 0.9%. Nonetheless, this growth was supported by expansionary monetary policy and inflation trending towards the 2% target. Although the fiscal and social environment in Europe appeared more stable, it was also less dynamic compared to the United States. Both regions faced risks related to geopolitical tensions, global trade, and market confidence.

The present Corporate Credit rating is issued by modefinance under EU Regulation 1060/2009 and following amendments.

The present rating is solicited and is based on both private and public information. The rated entity and/or related third parties have provided all private information used. Modefinance had access to some accounts and other relevant internal documents of the rated entity and/or related third parties. Solicited and unsolicited ratings issued by modefinance are of comparable quality, as the solicitation status has no effect on methodologies used. More comprehensive information on modefinance Corporate Credit Ratings are available at http://cra.modefinance.com/en

The present Corporate Credit Rating is issued on MORE Methodology 2.0 and Rating Methodology 1.0. A comprehensive description of both methodologies, as well as information on Modefinance Rating Scale and Mappings, is available at http://cra.modefinance.com/en/methodologies.

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modefinance refers to default as a company under bankruptcy, or under liquidation status, or under administration or for which missed payments on a financial obligation are officially recorded.

The quality of the information available on the rated entity and used to determine the present rating was judged by modefinance as satisfactory. Please note that modefinance does not perform any audit activity and is not in a position to guarantee the accuracy of any information used and/or reported in the present document. As such, modefinance can accept no liability whatsoever for actions taken based on any information that may subsequently prove to be incorrect.

The present credit rating was notified to the rated entity in order to identify potential factual errors, as prescribed by the CRA Regulation.

No amendments were applied after the notification process.

The rated company purchased ancillary services from modefinance (preliminary rating). Modefinance guarantees that this purchase of ancillary activities does not constitute any conflict of interest.

The rating action issued by modefinance was performed independently. The analysts, members of the rating team involved in the process, modefinance Srl and its members and shareholders do not have any conflicts of interest in relation to the Rated Entity and/or Related Third Parties. If in the future a potential conflict of interest is identified in relation to the persons reported above, modefinance Ratings will provide the appropriate information and if necessary the rating will be withdrawn.

The present Credit Rating is an opinion of the general creditworthiness that modefinance issues on the rated entity, and should be relied upon to a limited degree. The issued rating is subject to an ongoing monitoring until withdrawal.

Head Analyst - Stefano Chrisich, Rating Analyst
stefano.chirsich@modefinance.com

Responsible for Rating Approval - Naomi Busdon, Rating Process Manager
naomi.busdon@modefinance.com