Stezzano, 28 July 2022
BREMBO: EXTRAORDINARY GROWTH IN H1 2022
REVENUES AT €1,746.5 MILLION, +28.3% VS H1 2021 EBITDA AND EBIT UP 13%
NET PROFIT AT +17.3%
Compared to H1 2021:
-
Revenues at €1,746.5 million
(+28.3%); +19.3% on a like-for-like exchange rate and consolidation basis - EBITDA at €305.3 million (EBITDA margin: 17.5%); EBIT at €187.5 million (EBIT margin: 10.7%)
- Net investments for the period amounted to €121.6 million
- Net financial debt at €595.1 million (€368.0 million prior to the application of IFRS 16), up €98.2 million compared to 30 June 2021
H1 2022 results:
(€ million) | 2022 | 2021 | Change |
Revenue | 1,746.5 | 1,360.8 | +28.3% |
EBITDA | 305.3 | 270.2 | +13.0% |
% of sales | 17.5% | 19.9% | |
EBIT | 187.5 | 165.8 | +13.1% |
% of sales | 10.7% | 12.2% | |
Pre-tax profit | 198.2 | 168.2 | +17.8% |
% of sales | 11.4% | 12.4% | |
Net profit | 148.9 | 126.9 | +17.3% |
% of sales | 8.5% | 9.3% | |
30.06.22 | 30.06.21 | Change | |
Net financial | 595.1 | 496.9 | +98.2 |
debt | |||
Net financial debt | 368.0 | 290.2 | +77.8 |
excluding IFRS 16 |
Brembo Executive Chairman Matteo Tiraboschi stated: "The significant H1 results approved today by the Board of Directors are the outcome of a long-termmethod and strategy adopted by the whole Brembo team, which has shown strong commitment even in such a complex context, thereby ensuring performance continuity in line with the first three months of the year. Our Company continues to focus on providing customers with the utmost service quality and on innovating our solutions. This direction is actually reflected in the recently announced joint venture with a leading group in the production of high-techbraking components - a transaction that strengthens our position in an important segment for us such as the aftermarket.
Although the constantly changing geopolitical and macroeconomic scenario requires us to be cautious, Brembo's solid position, the significant results achieved so far and the encouraging signals we are receiving from our reference market let us look towards the rest of the year with confidence."
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H1 2022 results
Brembo's Board of Directors, chaired by Matteo Tiraboschi, met today and approved the Group's half-year results at 30 June 2022.
In the reporting period, net consolidated revenues amounted to €1,746.5 million, up 28.3% (+23.2% on a like-for-like exchange rate basis) compared to the first half of the previous year.
Following the acquisition of the Spanish J.Juan Group, effective 1 November 2021, the consolidation scope changed; on a like-for-like consolidation basis, the increase was 24.4%. On a like-for-like exchange rate and consolidation basis, revenues rose by 19.3% compared to the same period of the previous year.
In the reporting period, the Group reported a very positive performance across all sectors in which it operates: the car segment rose by 27.6%, motorbike applications by 44.3% (+12.2% on a like-for-like consolidation basis), applications for commercial vehicles by 17.4% and those for racing vehicles by 24.2% compared to the first half of 2021.
At geographical level, sales rose by 15.9% in Italy, by 27.5% in Germany and by 10.1% in France, whereas they declined by 3.4% in the United Kingdom (-4.1% on a like-for-like exchange rate basis). The North American market (USA, Mexico and Canada) grew by 49.8% (+37.4% on a like-for-like exchange rate basis) and the South American market (Brazil and Argentina) increased by 44.9% (+25.4% on a like-for-like exchange rate basis).
India grew by 30.9% (+23.4% on a like-for-like exchange rate basis) and China by 24.6% (+14.0% on a like-for-like exchange rate basis), while Japan decreased by 25.6% (-26.4% on a like-for-like exchange rate basis).
In H1 2022, the cost of sales and other net operating costs amounted to €1,148.5 million, with a 65.8% ratio to sales, up in percentage terms compared to 62.0% for the same period of the previous year (€843.9 million).
Personnel expenses amounted to €301.7 million, with a 17.3% ratio to sales, decreasing compared to the same period of the previous year (18.7% of sales).
At 30 June 2022, workforce numbered 12,797 (of which 628 from the J.Juan Group), compared to 12,656 at 31 March 2022 and 12,225 at 31 December 2021.
EBITDA amounted to €305.3 million (EBITDA margin: 17.5%) compared to €270.2 million
(EBITDA margin: 19.9%) for H1 2021.
EBIT amounted to €187.5 million (EBIT margin: 10.7%) compared to €165.8 million (EBIT
margin: 12.2%) for H1 2021.
Net interest income for the period amounted to €2.9 million (net interest expense of €1.5 million in H1 2021) and included interest expense amounting to €6.0 million (€5.3 million in H1 2021) and net exchange gains of €8.9 million (€3.8 million in H1 2021) . Income from investments was €7.8 million compared to €3.9 million in H1 2021.
Pre-tax profit was €198.2 million compared to €168.2 million for H1 2021.
Based on the tax rates applicable under current tax regulations in force in each country, estimated taxes amounted to €49.0 million (€41.4 million in H1 2021), with a tax rate of 24.7% compared to 24.6% for the same period of the previous year.
The first half of the year ended with a net profit of €148.9 million, up 17.3% compared to the same period of the previous year.
Net financial debt at 30 June 2022 amounted to €595.1 million, up €98.2 million compared to 30 June 2021. Excluding the impact of IFRS 16, net financial debt would be €368.0 million, up €77.8 million compared to 30 June 2021.
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JV agreement signed with Chinese Gold Phoenix to manufacture aftermarket pads
On 25 July, Brembo announced the incorporation of a 50/50 joint venture with Gold Phoenix, aimed at building the first large-scale site to manufacture brake pads for the aftermarket. The agreement is subject to local customary conditions precedent and antitrust approval.
The JV, denominated Shandong BRGP Friction Technology Co., Ltd, will focus on innovative products with premium quality, especially in terms of performance, comfort, durability and sustainability, with a view to anticipating the challenges posed by electrification and autonomous driving.
The JV will start operations at the beginning of 2023 in the city of Jinan, capital of the Shandong province, in eastern China.
As part of the transaction, the two companies will make a total investment of €35 million over the next three years.
Foreseeable Evolution
Our orders backlog for the coming months remains robust, with a good utilisation of production capacity at global level. Barring extraordinary changes in the current geopolitical situation and the macro-economic context, with particular regard to exchange rates and commodity and utilities prices, for FY 2022 the Group expects a second half of the year in line with H1 in terms of revenues and margins, thanks to the past and current long-term strategy adopted.
Pursuant to the applicable legislation in force, Brembo Group's Six Monthly Report at 30 June 2022, as approved by the Board of Directors today, will be made available to the public at the Company's registered office, and on the corporate websitewww.brembo.com, as well as in the authorised central storage mechanism at www.1info.it.
The manager in charge of the Company's financial reports Andrea Pazzi, declares, pursuant to paragraph 2 of Article 154- bis of Italy's Consolidated Law on Finance, that the accounting information contained in this press release corresponds to the documented results, books and accounting records.
Annexed hereto are the Statement of Income, the Statement of Financial Position and the Statement of Cash Flows.
Company contacts:
Laura Panseri | Roberto Cattaneo |
Head of Investor Relations | Chief Communication Officer |
Ph. +39 035 605 2145 | Ph. +39 035 605 2347 |
e-mail:laura_panseri@brembo.it | e-mail:press@brembo.it |
www.brembo.com | |
Daniele Zibetti | |
Corporate Media Relations | |
Ph. +39 035 605 3138 | |
e-mail:daniele_zibetti@brembo.it | |
www.brembo.com |
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CONSOLIDATED STATEMENT OF INCOME | ||||||||
(euro million) | 30.06.2022 | 30.06.2021 | Change | % | Q2 '22 | Q2 '21 | Change | % |
Revenue from contracts with customers | 1,746.5 | 1,360.8 | 385.7 | 28.3% | 888.9 | 685.7 | 203.2 | 29.6% |
Other revenues and income | 13.9 | 10.3 | 3.5 | 34.2% | 8.3 | 6.5 | 1.9 | 28.7% |
Costs for capitalised internal works | 11.3 | 11.5 | (0.2) | -1.8% | 5.2 | 4.8 | 0.3 | 6.5% |
Raw materials, consumables and goods | (833.3) | (608.8) | (224.5) | 36.9% | (421.8) | (301.0) | (120.8) | 40.1% |
Income (expenses) from non-financial investments | 9.1 | 7.6 | 1.5 | 19.6% | 4.5 | 3.5 | 1.1 | 30.9% |
Other operating costs | (340.4) | (257.0) | (83.4) | 32.5% | (172.2) | (134.5) | (37.7) | 28.0% |
Personnel expenses | (301.7) | (254.3) | (47.4) | 18.6% | (158.4) | (130.4) | (28.0) | 21.5% |
GROSS OPERATING INCOME | 305.3 | 270.2 | 35.1 | 13.0% | 154.5 | 134.6 | 20.0 | 14.8% |
% of revenue from contracts with customer | 17.5% | 19.9% | 17.4% | 19.6% | ||||
Depreciation, amortisation and impairment losses | (117.8) | (104.4) | (13.4) | 12.8% | (59.9) | (52.5) | (7.5) | 14.2% |
NET OPERATING INCOME | 187.5 | 165.8 | 21.7 | 13.1% | 94.6 | 82.1 | 12.5 | 15.2% |
% of revenue from contracts with customer | 10.7% | 12.2% | 10.6% | 12.0% | ||||
Net interest income (expense) | 2.9 | (1.5) | 4.4 | -299.4% | 1.0 | 1.2 | (0.2) | -14.1% |
Interest income (expense) from investments | 7.8 | 3.9 | 3.9 | 99.5% | 7.8 | 3.8 | 3.9 | 102.2% |
RESULT BEFORE TAXES | 198.2 | 168.2 | 30.0 | 17.8% | 103.4 | 87.2 | 16.3 | 18.7% |
% of revenue from contracts with customer | 11.4% | 12.4% | 11.6% | 12.7% | ||||
Taxes | (49.0) | (41.4) | (7.6) | 18.4% | (25.6) | (21.9) | (3.7) | 16.9% |
Result from discontinued operations | (0.2) | (0.1) | (0.1) | 57.9% | (0.1) | (0.1) | 0.0 | 6.6% |
RESULT BEFORE MINORITY INTERESTS | 149.1 | 126.8 | 22.3 | 17.6% | 77.8 | 65.2 | 12.6 | 19.3% |
% of revenue from contracts with customer | 8.5% | 9.3% | 8.7% | 9.5% | ||||
Minority interests | (0.2) | 0.2 | (0.4) | -215.2% | (0.5) | 0.4 | (0.9) | -233.4% |
NET RESULT FOR THE PERIOD | 148.9 | 126.9 | 22.0 | 17.3% | 77.2 | 65.6 | 11.7 | 17.8% |
% of revenue from contracts with customer | 8.5% | 9.3% | 8.7% | 9.6% | ||||
BASIC/DILUTED EARNINGS PER SHARE (euro) | 0.46 | 0.39 | 0.24 | 0.20 |
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CONSOLIDATED STATEMENT OF FINANCIAL POSITION
A | B | A-B | ||||
(euro million) | 30.06.2022 | 31.12.2021 | Change | |||
ASSETS | ||||||
NON-CURRENT ASSETS | ||||||
Property, plant, equipment and other equipment | 1,080.1 | 1,047.3 | 32.9 | |||
Right of use assets | 227.3 | 227.5 | (0.2) | |||
Development costs | 103.0 | 101.1 | 1.9 | |||
Goodwill and other indefinite useful life assets | 121.8 | 118.8 | 3.0 | |||
Other intangible assets | 77.6 | 77.4 | 0.2 | |||
Shareholding valued using the equity method | 54.3 | 45.1 | 9.2 | |||
Other financial assets (including investments in other companies and derivatives) | 245.6 | 320.3 | (74.6) | |||
Receivables and other non-current assets | 23.1 | 23.2 | (0.1) | |||
Deferred tax assets | 75.2 | 71.6 | 3.6 | |||
TOTAL NON-CURRENT ASSETS | 2,008.0 | 2,032.3 | (24.3) | |||
CURRENT ASSETS | ||||||
Inventories | 631.2 | 482.9 | 148.3 | |||
Trade receivables | 688.9 | 468.2 | 220.7 | |||
Other receivables and current assets | 132.6 | 136.2 | (3.6) | |||
Current financial assets and derivatives | 24.7 | 5.6 | 19.1 | |||
Cash and cash equivalents | 349.0 | 557.5 | (208.4) | |||
TOTAL CURRENT ASSETS | 1,826.4 | 1,650.4 | 176.0 | |||
ASSETS FROM DISCONTINUED OPERATIONS | 0.5 | 0.7 | (0.1) | |||
TOTAL ASSETS | 3,834.9 | 3,683.3 | 151.7 | |||
EQUITY AND LIABILITIES | ||||||
GROUP EQUITY | ||||||
Share capital | 34.7 | 34.7 | 0.0 | |||
Other reserves | 206.1 | 124.1 | 82.0 | |||
Retained earnings/(losses) | 1,414.3 | 1,388.2 | 26.1 | |||
Net result for the period | 148.9 | 215.5 | (66.6) | |||
TOTAL GROUP EQUITY | 1,804.1 | 1,762.6 | 41.5 | |||
TOTAL MINORITY INTERESTS | 33.8 | 33.5 | 0.3 | |||
TOTAL EQUITY | 1,838.0 | 1,796.1 | 41.8 | |||
NON-CURRENT LIABILITIES | ||||||
Non-current payables to banks | 477.9 | 516.2 | (38.3) | |||
Long-term lease liabilities | 201.9 | 202.3 | (0.4) | |||
Other non-current financial payables and derivatives | 1.3 | 3.1 | (1.8) | |||
Other non-current liabilities | 5.1 | 2.0 | 3.1 | |||
Non-current provisions | 50.0 | 45.0 | 5.0 | |||
Provisions for employee benefits | 18.6 | 24.0 | (5.4) | |||
Deferred tax liabilities | 39.8 | 38.2 | 1.7 | |||
TOTAL NON-CURRENT LIABILITIES | 794.7 | 830.8 | (36.1) | |||
CURRENT LIABILITIES | ||||||
Current payables to banks | 261.7 | 225.3 | 36.4 | |||
Short-term lease liabilities | 25.3 | 24.2 | 1.0 | |||
Other current financial payables and derivatives | 0.8 | 3.8 | (3.0) | |||
Trade payables | 724.3 | 590.8 | 133.5 | |||
Tax payables | 12.6 | 13.0 | (0.4) | |||
Current provisions | 0.4 | 1.0 | (0.6) | |||
Other current liabilities | 177.2 | 198.2 | (21.0) | |||
TOTAL CURRENT LIABILITIES | 1,202.2 | 1,056.3 | 146.0 | |||
LIABILITIES FROM DISCONTINUED OPERATIONS | 0.1 | 0.1 | 0.0 | |||
TOTAL LIABILITIES | 1,997.0 | 1,887.2 | 109.8 | |||
TOTAL EQUITY AND LIABILITIES | 3,834.9 | 3,683.3 | 151.7 | 5/8 | ||
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Brembo S.p.A. published this content on 28 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 July 2022 11:45:08 UTC.