THE BOARD OF PIRELLI & C. SPA APPROVES CONSOLIDATED RESULTS TO 30 SEPTEMBER 2022
PIRELLI: FIRST NINE MONTHS SAW STRONG GROWTH IN REVENUES (+26.5%) AND ADJUSTED EBIT (+25.8%)
PRICE/MIX AT +20.0% THANKS TO PRICE INCREASES AND IMPROVED MIX
NET PROFIT +52.1% AT 359.3 MILLION EURO (236.2 MILLION ON 30 SEPTEMBER 2021)
IN THE FIRST 9 MONTHS OPERATING CASH FLOW POSITIVE 87.4 MILLION EURO (AN IMPROVEMENT OF 171.9 MILLION COMPARED TO 30 SEPTEMBER 2021) THANKS TO GROWTH OF ADJUSTED EBIT
IN THE THIRD QUARTER NET CASH FLOW BEFORE DIVIDENDS POSITIVE 140.5 MILLION EURO (+104.3 MILLION EURO ON 30 SEPT. 2021)
Third quarter 2022
- Revenues: +29.8% at 1,836.3 million euro compared with third quarter 2021 (organic variation +21.2% excluding forex effect of +8.6%)
- Total volumes: +1.8% (High Value +8.2% and Standard -5.7%)
- Price/Mix: +19.4%, with a greater contribution from the price component
- Adjusted Ebit: +22.8% at 271.9 million euro (221.4 million in third quarter 2021), with an Adjusted Ebit margin at 14.8%
- Net profit: +20.7% at 126.3 million euro (104.6 million in third quarter 2021)
- Net cash flow before dividends positive 140.5 million euro (+104.3 million euro in third quarter 2021)
First nine months 2022
- Revenues: +26.5% to 5,033.3 million euro compared with 30 September 2021 (organic variation +20% excluding forex effect of +6.5%)
- Total volumes unchanged due to fall in Standard (-7.6%) while the strengthening of High Value continued (+6.6%). Reinforcement of share in Car ≥18’’, with volume growth of +9.4% (market +6.8%), in particular in Replacement (+10.1% compared with market’s +5.3%)
- Price/Mix: +20% thanks to price increases and improved mix
- Adjusted Ebit: +25.8% to 753.5 million euro (598.8 million on 30 September 2021). The improved price/mix and efficiencies more than offset the impact of the external context (raw materials and inflation)
- Adjusted Ebit margin at 15% (unchanged compared with 30 September 2021)
- Net profit: +52.1% at 359.3 million euro (236.2 million euro to 30 September 2021) thanks to the improvement of the operating performance
- Net cash flow before dividends: -323.2 million euro (-376.7 million euro on 30 September 2021). Operating net cash flow positive 87.4 million euro, an improvement of 171.9 million euro compared with -84.5 million on 30 September 2021
- Net Financial Position: -3,390.5 million euro (-3,714.9 million on 30 September 2021 and -2,907.1 million euro on 31 December 2021)
- Liquidity margin: 2,532.2 million euro, debt maturities covered until the first quarter of 2024
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2022 OUTLOOK AND TARGETS
- Targets revised up thanks to the resilience of the business model and measures to counter the volatility of the external context
- Revenues revised up to ~6.5 billion euro (previous estimate between ~6.2 billion and ~6.3 billion), thanks to expectations that price/mix will improve to ≥+17% (previous indication ~+13.5% / ~+14.5%) thanks to the implementation of price increases and better performance of product mix
- Volumes stable compared with 2021 (previous indication between ~+0.5% and ~+1.5%) considering the slowdown in demand in the Replacement channel
- Profitability confirmed with an Adjusted Ebit Margin of ~15%
- Net cash flow before dividends revised up to ~480 million euro (previous estimate between ~ 450 and ~470 million) thanks to the improvement of operations’ management and working capital
- Investment confirmed at ~390 million euro (~6% of revenues)
- Net financial position expected at ~-2.6 billion euro, with improvement of Nfp/Adjusted Ebitda ratio to ~1.9 times (previous indications ≤ 2 times) compared with 2.4 times at end 2021