BOARD OF PIRELLI & C. SPA REVIEWED PRELIMINARY RESULTS TO 31 DECEMBER 2021
2021 RESULTS ABOVE TARGETS: REVENUES 5.3 BN EURO, ADJUSTED EBIT AT 816 MN, CASH FLOW BEFORE DIVIDENDS 431 MN
TOTAL VOLUMES +15.7% (HIGH VALUE VOLUMES +20.2%) AND PRICE/MIX +9.1%
NET PROFIT RISES TO 321.6 MN
FOURTH QUARTER PRICE/MIX RECORD AT +16.3% BECAUSE OF PRICE INCREAES AND MIX IMPROVEMENT
LEADERSHIP POSITION CONFIRMED ON THE KEY SUSTAINABILITY INDICES
Full year 2021
- Revenues: +23.9% to 5,331.5 million euro compared with 2020 (organic variation +24.8% excluding forex effect -0.9%), above targets of ~5.1 and ~5.15 billion euro
- Adjusted ebit: +62.8% to 815.8 million euro (501.2 million euro in 2020): the improvement of price/mix and efficiencies more than offset the impact of the external context (raw materials, forex, and inflation)
- Adjusted ebit margin at 15.3% (target between ~15% and ~15.5%)
- Net result: +321.6 million euro (+42.7 million euro in 2020)
- Net cash flow before dividends: +431.2 million euro (+248.8 million in 2020), above target of ~390 and ~410 million euro
- Net Financial Position: -2,907.1 million euro (-3,258.4 million euro at end 2020), target <3.0 billion euro. Debt/Adjusted ebitda ratio at ~2.4x (target ~2.6x)
- Research & Development expenditure: 240.4 million euro in 2021 (4.5% of sales), of which 225.1 million euro destined to High Value activities (6.0% of segment revenues)
- In 2021 significant improvements in terms of sustainability performance
- Board approves new EMTN program of 2 billion euro
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OUTLOOK AND 2022 TARGETS
- In 2022 growth is expected, even in a volatile context due to inflationary and geopolitical tensions
- Efficiencies and price/mix will more than offset the impact of the external context (raw materials, inflation and forex)
- Revenues estimated between ~5.6 and ~5.7 billion euro, with volumes expected between ~+1.5% and ~+2.5% driven by High Value (~+6% and ~+7%)
- Price/mix seen growing between ~+5.5% and ~+6.5%
- Adjusted Ebit Margin expected between ~16% and ~16.5%
- Net cash generation before dividends expected between ~450 and ~480 million euro
- Investments at ~390 million euro (~7% of revenues)
- Net financial position at ~-2.6 billion euro
- Actions to mitigate impact of Russia-Ukraine crisis ready