(Alliance News) - Pirelli & C. Spa reported Wednesday that it closed 2023 with revenues up 0.5 percent year-on-year to EUR6.65 billion from EUR6.62 billion in 2022, beating internal estimates of EUR6.6 billion.

In 2023, volume performance amounted to a 1.8 percent decrease, less than the company's target decrease of 2 percent, and reflecting the strategy of reducing exposure on Standard against confirmation of positioning on High Value, which saw Car volume growth of 5 percent, in line with the market but with a different trend by channel: plus 4 percent in Replacement and plus 6 percent in Original Equipment due to greater selectivity in favor of higher calories.

Price/mix increased 8.6 percent in 2023-more 8 percent the target-supported by price increases to counter rising input inflation and improved product mix related to the gradual migration from Standard to High Value and improved mix in both segments.

Adjusted Ebitda in 2023 was EUR1.45 billion, up 2.7 percent from EUR1.41 billion in 2022.

Adjusted Ebit was EUR1.00 billion-EUR985 million was the implied target disclosed in November-improving from EUR977.8 million in 2022, with an adjusted Ebit margin of 15.1 percent from 14.8 percent in 2022. The contribution of internal levers more than offset the negativity of the external scenario.

Net income in 2023 was EUR495.9 million and up 14 percent from EUR435.9 million in 2022, reflecting improved operating performance and benefits from the Patent Box.

Net cash flow from operations in 2023 was EUR1.02 billion from EUR1.01 billion in 2022 and reflects growth in adjusted Ebitda and tangible and intangible investments of EUR405.7 million in 2023 compared to EUR397.7 million in 2022, mainly for High Value activities, continuous mix and quality improvement of all factories, and increased production capacity in Mexico and Romania.

Net Financial Position as of December 31, 2023 is negative EUR2.26 billion from EUR2.55 billion as of December 31, 2022, better than the target of EUR2.33 billion. The adjusted NFP/Ebitda ratio is minus 1.56 times, better than the target minus 1.60~1.65 times.

Pirelli's board will propose to the shareholders' meeting to distribute a dividend of EUR0.198 per share, for a grand total of EUR198 million. Last year, the company distributed EUR0.218.

Pirelli's stock is down 1.6 percent at EUR5.65 per share.

By Giuseppe Fabio Ciccomascolo, Alliance News senior reporter

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