PIRELLI: 2024 RESULTS APPROVED
BOARD WILL PROPOSE TO THE SHAREHOLDERS’ MEETING THE DISTRIBUTION OF A DIVIDEND PER SHARE OF 0.25 EURO FOR 2024 (0.198 EURO FOR 2023) FOR A TOTAL OF 250 MILLION EURO
SINOCHEM GROUP’S CONTROL OVER PIRELLI ENDS IN ACCORDANCE WITH IFRS 10 ACCOUNTING PRINCIPLE, WITH A MAJORITY VOTE
DIALOGUE WITH THE MAIN SHAREHOLDERS CONTINUES TO ALIGN GOVERNANCE WITH USA REGULATIONS
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Milan, 28 April 2025 – The Board of Directors of Pirelli & C. Spa met today and majority approved results to 31 December 2024 with the favourable vote of 9 out of 15 board members. Votes against were the one of Chairman Jiao Jian and the Directors Chen Aihua, Zhang Haitao, Chen Qian and Fan Xiaohua, while Director Grace Tang abstained.
The financial report, upon the proposal of the Chief Executive Officer Andrea Casaluci, contains the disclosure according to which following the issuance of the DPCM Golden Power, the control of MPI Italy (and, therefore, of Sinochem) over Pirelli has ended pursuant to the IFRS 10. At the same time, Pirelli, pursuant to the afore mentioned accounting principle, is not subject to the control of any entity.
The verification of the existence of control by the Sinochem Group, through Marco Polo Italy (MPI Italy) was raised by the board of statutory auditors and management following the issuance of the DPCM Golden Power and the theme was analyzed in depth with the support of auditing and primary law firms. The decision was also taken in compliance with Consob’s provision which had returned the relevant evaluation to the Board of Directors to be conducted through the application of the IFRS 10 international accounting principle. The board members who expressed a contrary vote, or abstained, were motivated in their dissent solely with regard to the declaration of the end of Sinochem’s control of Pirelli, in accordance with the IFRS10, disagreeing with the relative motivations, also in consideration of the fact that the shareholder pact between Camfin and CNRC/MPI Italy is still in force and that, in their opinion, therefore CNRC/MPI Italy maintains control over Pirelli in accordance with article 93 of the TUF.
The management notes that the decision regarding the absence of control of the shareholder Sinochem represents a first, but not decisive, step on the path to the necessary adjustment of company governance to regulatory constraints in the USA, a key market in the High Value tyre segment and for the development and distribution of Cyber Tyre technology. Management therefore reaffirmed it will continue its dialogue with the main shareholders to align Pirelli’s governance with American regulations, particularly regarding connected vehicles, in the interests of the company and all its stakeholders.
2024 Financial Results
Full-year 2024, the unaudited and preliminary results of which were communicated to the market on 26 February 2025, closed with a consolidated net profit of 501.1 million euro, an increase of 1% compared with 495.9 million euro in 2023, and revenues increasing by 1.9% to 6,773.3 million euro. The year also saw a further improvement in the group’s sustainability performance: for more details refer to the press release of 26 February 2025.
The Board today also approved the results of the Parent Company Pirelli & C. Spa which in 2024 posted a net profit of 302.0 million euro, an increase of 24.3% compared with 242.9 million euro in 2023. The Board, in line with the dividend policy of the 2024-2025 Industrial Plan Update, which for 2024 called for the distribution equal to around 50% of the consolidated net result, will propose to the shareholders’ meeting the distribution of a dividend of 0.25 euro per share (0.198 euro per share for 2023) for an overall total of 250 million euro.
The dividend for 2024 will be paid from 25 June 2025 (coupon detachment 23 June 2025 and record 24 June 2025).
2025 Targets
Pirelli confirms – in view of the high level of uncertainty surrounding US tariffs – the targets communicated to the market on 26 February 2025. The company has already defined a mitigation plan for the impact of USA tariffs, should the measures currently announced come into effect, with the aim of guaranteeing the Adjusted Ebit target and cash generation at the lower end of guidance, therefore achieving the deleveraging target.