THE BOARD OF PIRELLI & C. SPA REVIEWED CONSOLIDATED RESULTS TO 30 JUNE 2023
PIRELLI: 1H REVENUES +7.5%, NET PROFIT +4.1% TO 242.6 MILLION EURO
PRICE/MIX AT 12.5% THANKS TO PRICE INCREASES AND IMPROVED MIX
ADJUSTED EBIT: +7.4% TO 517.4 MILLION, WITH MARGIN AT 15.1%
IN SECOND QUARTER ADJUSTED EBIT MARGIN ROSE TO 15.5% AND NET CASH FLOW BEFORE DIVIDENDS POSITIVE 156.5 MILLION EURO
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First half 2023
- Revenues: 3,437.5 million euro up +7.5% compared with first half 2022 (organic variation +10.4% excluding forex effect of -2.9%)
- Price/Mix: +12.5% thanks to price increases and improved mix
- Strengthening of position in High Value with growth of Car ≥18’’ volumes of +5.7% compared with +4.8% of the market
- Adjusted Ebit: 517.4 million euro, an increase of +7.4% compared with first half 2022. The improvement of the price/mix and efficiencies more than offset the impact of the external context (raw materials, inflation and forex)
- Adjusted Ebit margin at 15.1% unchanged compared with first half 2022
- Net profit rises by 4.1% to 242.6 million euro (233.0 million euro in first half 2022)
- Net cash flow before dividends: -534.9 million euro, substantially stable compared with first half 2022 (-463.7 million in first half 2022) excluding the impact of the 3-year LTI 2020-2022 management incentive plan
- Net Financial Position: -3,087.5 million euro (-3,530.7 million on 30 June 2022 and -2,552.6 million on 31 December 2022)
Second quarter 2023
- Revenues: 1,737.8 million euro up +3.7% compared with second quarter 2022 (organic variation +9.1% excluding forex effect of -5.4%)
- Price/Mix: +10.2% thanks to price increases and improved mix
- Adjusted Ebit: 269.3 million euro, an increase of +6.4% compared with second quarter 2022
- Adjusted Ebit margin rises to 15.5% (15.1% in second quarter 2022)
- Net profit 127.6 million euro (123.2 million euro in second quarter 2022)
- Net Cash flow before dividends: +156.5 milion euro (+209.2 milion euro in second quarter 2022)
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2023 TARGETS
- Adjusted Ebit Margin revised upwards to between ~14.5% and <15% (previous estimate >14% and ~14.5%) thanks to the improvement of price mix (~+7% and ~+8% compared with prior indication ~+4.5% / ~+5.5%)
Revenues estimated between ~6.5 and ~6.7 billion di euro (previous estimate ~6.6 and ~6.8 billion) in consideration of greater caution linked to the external context (volumes and forex)
- Net cash generation before dividends confirmed at between ~440 and ~470 million euro
- Investments confirmed at ~400 million euro (~6% of revenues)
- Net financial position confirmed at ~-2.35 billion euro, with a NFP/adjusted Ebitda ratio of around 1.65x/1.7x
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- Changes to bylaws in compliance with the Golden Power measures approved
Milan, 27 July 2023 – The Board of Directors of Pirelli & C. Spa met today and approved results to 30 June 2023 which show growth in the main economic and market indicators thanks to the implementation of the “key programs” of the Industrial Plan 2021-2022|2025.