Milan,
11
November
2021
|
17:48
Europe/Amsterdam
PIRELLI & C. S.P.A. BOARD APPROVES CONSOLIDATED RESULTS TO 30 SEPTEMBER 2021
corporate-investors
PIRELLI: RESULTS’ GROWTH SUPPORTED BY KEY PROGRAMS OF THE 2021-2022|2025 INDUSTRIAL PLAN
9-MONTH REVENUES +28.6%, ADJUSTED EBIT MARGIN AT 15.0% AND NET PROFIT AT 236.2 MILLION EURO
STRENGTHENING OF HIGH VALUE: IN CAR ≥18” GROWTH MARKEDLY HIGHER THAN MARKET (PIRELLI VOLUMES +31%, MARKET +21%)
SIGNIFICANT GROWTH OF PRICE/MIX: +10.9% IN THE THIRD QUARTER AND +6.3% IN 9 MONTHS
HIGH LEVEL OF CASH GENERATION: +104.3 MILLION EURO NET CASH FLOW BEFORE DIVIDENDS IN THIRD QUARTER
First 9 months 2021
- Revenues: +28.6% to 3,979.3 million euro (organic variation +31.0%). High Value revenues accounted for 71.4% of total revenues (71.2% in the first 9 months of 2020) in line with targets
- Total volumes grew 24.7%: High Value volumes +27.8%, Car ≥18” volumes +31% (market +21%) with strengthening of market shares in all Regions. More sustained trend in Car ≥19’’with 38% growth (market +27%)
- Price/Mix: +6.3% in the first 9 months of 2021 thanks to price increases and improved product mix, particularly in High Value
- Adjusted Ebit: +113.6% to 598.8 million euro (280.4 million in the first 9 months of 2020), with an Adjusted Ebit Margin of 15.0% (9.1% in the first 9 months of 2020) thanks to the contribution of internal levers
- Net result: +236.2 million euro (-17.8 million euro in the first 9 months of 2020)
- Net cash flow before dividends: -376.7 million euro, an improvement of 368.6 million euro compared to -745.3 million euro in first 9 months of 2020
- Net financial position: -3,714.9 million euro (-3,258.4 million euro on 31 December 2020, -4,252.5 million euro on 30 September 2020)
- Liquidity margin: 1,540 million euro on 30 September 2021, maturities on financial debts guaranteed until the end of first half 2023
Third quarter 2021
- Revenues: 1,414.5 million euro, +10.7% compared with third quarter 2020 (organic variation 10.5% excluding effects of forex/Argentine hyperinflation +0.2%)
- Price/Mix: +10.9% reflecting price increases and improvement of the product and channel mix
- Volumes: -0.4%, High Value +1.8% (Car ≥18” grew +4% compared with market’s -2%, Standard volumes -2.6%, in the context of a weakening market (total car tyre demand -5% because of the effect of the chip crisis on car production and new lockdown measures in Apac)
- Adjusted Ebit: 221.4 million euro (213.7 million euro in third quarter 2020), Adjusted Ebit Margin 15.7%, in line with second quarter margin
- Net result: +24.7% to 104.6 million euro (+83.9 million euro in third quarter 2020)
- Net cash flow before dividends: +104.3 million euro, a marked improvement compared with +12.2 million in third quarter 2020
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- Approved syndicated line of 1.6 billion euro to optimize debt profile
- Giorgio Luca Bruno nominated manager with responsibility for the preparation of the Company’s accounting documents
2021 TARGETS
- Upward revision of revenue and cash generation targets, all other 2021 targets confirmed
- Revenues expected at between ~5.1 and ~5.15 billion euro, (follows upward revision in August to between ~5.0 and ~5.1 billion euro), with volumes expected at between ~+14% and ~+15% (in line with the previous indication which was revised up in August)
- Marked improvement in price/mix to ~+7% (follows upward revision of target in August to between +4.5% and +5%)
- Adjusted Ebit Margin confirmed at between ~ 15% and ~15.5% (follows upward revision in August)
- Net cash generation before dividends improving to between ~390 and ~410 million euro (in August the targets had been revised up to between ~360 and ~390 million euro)
- Investments confirmed at ~330 million euro
- Net financial position confirmed at <3 billion euro (follows improved revision in August)