PIRELLI & C. S.P.A. PIRELLI: STRONG REVENUE GROWTH (+24.6%) AND ADJUSTED EBIT (+27.6%)
PRICE/MIX AT RECORD +20.4%DUE TO PRICE INCREASES AND MIX IMPROVEMENT
NET PROFIT +77.1% TO 233.0 MILLION EURO (131.6 MILLION IN FIRST HALF 2021)
OPERATING CASH FLOW IMPROVES BY 108 MILLION COMPARED WITH FIRST HALF 2021 THANKS TO GROWTH OF ADJUSTED EBIT AND EFFECTIVE MANAGEMENT OF WORKING CAPITAL
First half 2022
- Revenues: +24.6% to 3,197 million euro compared with first half 2021 (organic variation +19.4% excluding forex effect of +5.2%). High Value revenues at 72% of total.
- Volumes: -1.0% because of fall in Standard (-8.8%) while High Value continues to strengthen (+5.8%). Strengthens market share in Car ≥18'' with volume growth of +8% (market +5%), particularly in Replacement (+13% compared with market +8%)
- Price/Mix: +20.4%, a record level thanks to price increases and mix improvement
- Adjusted Ebit: +27.6% to 481.6 million euro (377.4 million in first half of 2021). The improvement of price/mix and efficiencies more than offset the impact of the external context (raw materials and inflation)
- Adjusted Ebit Margin at 15.1% (14.7% in first half 2021)
- Net profit: +77.1% to 233.0 million euro (131.6 million euro in first half 2021) thanks to the further improvement in the operating performance
- Net cash flow before dividends: -463.7 million euro (-481.0 million euro in first half 2021). Operating cash flow improved by 108.0 million euro compared with first half 2021
- Net Financial Position:-3,530.7 million euro (-3,818.7 million euro on 30 June 2021 and -2,907.1 million euro on 31 December 2021)
- Liquidity margin: 2,428.4 million euro, debt maturities covered until the second half of 2024
Second quarter 2022
- Revenues: +26.9% to 1,675.9 million euro compared with second quarter 2021 (organic variation +19.8% excluding forex effect of +7.1%)
- Total volumes: -0.6% (High Value +5.7% and Standard -7.9%)
- Price/Mix: +20.4% in line with the first quarter with a greater contribution from the price component
- Adjusted Ebit: 253.1 million euro (208.6 million in second quarter 2021), with an Adjusted Ebit Margin at 15.1% (stable compared with first quarter 2021 and slightly down compared with 15.8% in the second quarter of 2021 because of the reduction of inventories and hyperinflation in Turkey)
- Net profit: +37.8% at 123.2 million euro (89.4 million in second quarter 2021)
- Net cash flow before dividends positive at 209.2 million euro (172.5 million euro in second quarter 2021)
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2022 OUTLOOK AND TARGETS
- 2022 macroeconomic scenario remains volatile. Growth to slow because of geopolitical tensions, inflation, Covid outbreaks and monetary tightening
- Targets updated upwards thanks to the effectiveness of the business model and measures to counter the external scenario
- Revenues expected to be between ~6.2 billion and ~6.3 billion euro (previous estimate ~5.9 and ~6.0 billion), with volumes confirmed to grow by between ~+0.5% and ~+1.5% driven by High Value
- Price/mix expected to improve to ~+13.5% / ~+14.5% (compared with previous indications~+10% / ~+11%) thanks to additional price increases
- Adjusted Ebit Margin confirmed at ~15%
- Net cash generation before dividends seen between ~ 450 and ~470 million euro (previous estimate ~450 million) thanks to growth of adjusted Ebit and effective management of working capital
- Investments confirmed at ~390 million euro (~6% of revenues)
- Net financial position confirmed at ~-2.6 billion euro
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Pirelli & C. S.p.A. published this content on 04 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 August 2022 16:07:15 UTC.
