Cash flows and the Group’s credit line needs are managed in order to guarantee
- an effective and efficient management of the financial resources
- the optimisation of debt’s maturity standpoint
Liquidity risk and capitals management
The liquidity risk arises from the possibility that available financial resources are not sufficient to cover, in due times and procedures, future payments arising from financial and/or commercial obligations. To deal with these risks, cash flows and the Group’s credit line needs are monitored or managed centrally under the control of the Group’s Treasury in order to guarantee an effective and efficient management of the financial resources as well as optimise the debt’s maturity standpoint.
In addition, the Parent Company finances the temporary cash requirements of Group companies by providing direct short-term loans regulated in market conditions or guarantees.
As of 30 September 2023, the Group had a liquidity of €/000 232,848, undrawn irrevocable credit lines of €/000 316,659 and revocable credit lines of €/000 183,083, as detailed below:
| In thousands of Euros | As of 30 September 2023 | As of 31 December 2022 |
|---|---|---|
| Variable rate with maturity within one year - irrevocable until maturity* | 234,159 | 14,063 |
| Variable rate with maturity beyond one year - irrevocable until maturity | 82,500 | 300,555 |
| Variable rate with maturity within one year - cash revocable | 174,083 | 184,418 |
| Variable rate with maturity within one year - with revocation for self-liquidating typologies | 9,000 | 9,000 |
| Total undrawn credit lines | 499,742 | 507,981 |
*Does not take into account the 1-year extension on the revolving credit facility of the syndicated loan.