Milan,
05
August
2021
|
17:44
Europe/Amsterdam
THE BOARD OF PIRELLI & C. SPA APPROVED CONSOLIDATED RESULTS TO 30 JUNE 2021
PIRELLI: RESULTS SUPPORTED BY GENERAL RECOVERY IN DEMAND AND KEY PROGRAMS OF THE 2021-2022|2025 INDUSTRIAL PLAN
MARKED GROWTH IN SECOND QUARTER: REVENUES +72.6%, ADJUSTED EBIT MARGIN 15.8%
FIRST HALF REVENUES +41.2%, ADJUSTED EBIT MARGIN 14.7%
STRENGTHENED IN HIGH VALUE, WITH CAR ≥18” GROWTH SIGNIFICANTLY STRONGER THAN MARKET (PIRELLI +51%, MARKET +35% IN FIRST HALF)
NET PROFIT IN FIRST HALF AT 131.6 MILLION EURO (-101.7 MILLION IN FIRST HALF 2020)
STRONG CASH GENERATION: +172.5 MILLION EURO NET CASH FLOW BEFORE DIVIDENDS IN SECOND QUARTER
Second quarter 2021
- Revenues: +72.6% to 1,320.1 million euro compared with second quarter 2020 (organic variation +73.9% excluding effect of forex/ Argentina hyperinflation equal to -1.3%)
- Group volumes: + 69.9% compared with second quarter 2020, High Value volumes +68.8%, Car ≥18’’ +74%
- Price/Mix: +4.0% reflecting price increases following rise in raw material costs
- Adjusted Ebit: 208.6 million euro (-74.4 million in 2Q 2020), with Adjusted Ebit margin at 15.8% (-9.7% in 2Q 2020)
- Net result: +89.4 million euro (-140.2 million in 2Q 2020)
- Net Cash flow before dividends positive 172.5 million euro (-4.0 million in 2Q 2020 and +72,4 million in 2Q 2019)
First half 2021
- Revenues: 2,564.8 million euro, an increase of 41.2% compared with first half 2020 (organic variation +45.3%). High Value revenues reach 71.9% of Group revenues (70.8% in first half 2020)
- Group volumes grew by 42.3%: High Value volumes +46.3%, Car ≥18” volumes +51% (market +35%) with strengthening of market share in all Regions. Stronger trend in Car ≥19’’ which grew by +58% (market +43%)
- Price/Mix: +3.0% in first half 2021 thanks to price increases and improvement of product mix
- Adjusted Ebit: 377.4 million euro (66.7 million in first half 2020), with a margin at 14.7% (3.7% in first half 2020)
- Net profit: 131.6 million euro (-101.7 million euro in first half 2020)
- Net cash flow before dividends: -481.0 million euro, an improvement compared with -757.5 million in first half 2020 and -640.5 million euro in first half 2019 thanks to the operating performance and management of working capital
- Net financial position: -3,818.7 million euro (-3,258.4 million euro on 31 December 2020 and -4,264.7 million euro on 30 June 2020)
***
2021 TARGETS
- 2021 targets revised up
- Revenues expected between ~5.0 and ~5.1 billion euro, (previous target between ~4.7 and ~4.8 billion euro), with volumes between +14% and +15% (previous target +11% ÷ +13%) driven by High Value (expected +18% ÷ +19%, previous target +15% ÷ +17%)
- Price/mix improving to between +4.5% and +5% (previous target +2.5% ÷ +3%) thanks to price increases and more favorable channel and product mix
- Adjusted Ebit Margin between ~15% and ~15.5% (previous target between >14% and ~15%)
- Net cash flow generation before dividends improving to ~360÷~390 million euro (previous target ~300 ÷ ~340 million)
- Investments confirmed at ~330 million euro
- Net financial position at <3 billion euro, an improvement compared with the previous target of ~3 billion euro