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Brembo
Earnings Release • Nov 7, 2024
4472_rns_2024-11-07_cfe9101c-1693-4ce7-8e3c-ca12aea97cc1.pdf
Earnings Release
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Bergamo (Italy), 7 November 2024
BREMBO: REVENUES AT Ȗ2,927.8 MILLION FOR 9M 2024, +0.3% (+0.8% ON A LIKE-FOR-LIKE EXCHANGE BASIS) EBITDA AT Ȗ501.1 MILLION NET PROFIT AT Ȗ197.2 MILLION
Results at 30 September 2024:
- Revenues at Ȗ2,927.8 million (+0.3%; +0.8% on a like-for-like exchange rate basis)
- EBITDA at Ȗ501.1 million (EBITDA margin: 17.1%); EBIT at Ȗ302.0 million (EBIT margin: 10.3%)
- Net investments at Ȗ268.7 million
- Net financial debt at Ȗ637.0 million (Ȗ462.0 million prior to the application of IFRS 16)
| (Ȗ million) | 9M 2024 | 9M 2023 | Change |
|---|---|---|---|
| Revenue | 2,927.8 | 2,919.0 | +0.3% |
| EBITDA | 501.1 | 500.2 | +0.2% |
| % of sales | 17.1% | 17.1% | |
| EBIT | 302.0 | 312.8 | -3.5% |
| % of sales | 10.3% | 10.7% | |
| Pre-tax profit | 276.0 | 310.1 | -11.0% |
| % of sales | 9.4% | 10.6% | |
| Net profit | 197.2 | 231.1 | -14.7% |
| % of sales | 6.7% | 7.9% | |
| 30.09.24 | 31.12.23 | Change | |
| Net financial debt | 637.0 | 454.8 | 182.2 |
| Net financial debt | 462.0 | 283.6 | 178.4 |
| excluding IFRS 16 |
Brembo Executive Chairman Matteo Tiraboschi stated: "The results for the first nine months of 2024 show the strong resilience achieved by the Group thanks to its medium-long term strategy, against an automotive industry that is facing severe difficulties at global level. We maintained revenues and EBITDA in line with the already positive same period of 2023, also thanks to the good performance of the aftermarket. Brembo continues to invest, despite a macroeconomic context that remains significantly complex. We announced the acquisition — the largest in the Group's history — of Öhlins, the global leading manufacturer of suspension technology. This industrial investment will strengthen Brembo's positioning on the market to provide integrated intelligent solutions to our customers."
Results at 30 September 2024
Brembo's Board of Directors, chaired by Matteo Tiraboschi, examined and approved the Group's results at 30 September 2024.
Net consolidated revenues amounted to Ȗ2,927.8 million, up 0.3% (+0.8% on a like-for-like exchange rate basis) compared to the first nine months of the previous year.
In the reporting period, Brembo's car segment rose by 2.0%, also thanks to the good performance of the aftermarket segment.
Motorbike applications declined by 1.7%, applications for commercial vehicles by 9.4% and racing applications by 1.6% compared to the first nine months of 2023.
At geographical level, Brembo's sales in Italy decreased by 5.8%, whereas sales in Germany remained substantially stable (+0.6%); France grew by 2.4% and the United Kingdom by 17.5% (+16.2% on a like-for-like exchange rate basis).
India grew by 13.2% (+15.0% on a like-for-like exchange basis) and China by 8.4% (+10.9% on a like-for-like exchange basis).
The North American market (USA, Mexico and Canada) decreased by 3.8% (-3.5% on a like-forlike exchange rate basis) and the South American market (Brazil and Argentina) by 3.9% (+0.6% on a like-for-like exchange rate basis).
At 30 September 2024, the cost of sales and other net operating costs amounted to Ȗ1,892.6 million, with a 64.6% ratio to sales, declining in percentage terms compared to the same period of the previous year (66.1% of sales, equal to Ȗ1,930.5 million).
Personnel expenses amounted to Ȗ546.1 million, with an 18.7% ratio to sales, increasing compared to the same period of the previous year (17.2% of sales, equal to Ȗ501.1 million). At 30 September 2024, Brembo People numbered 15,849, compared to 15,674 at 30 September 2023 and 15,653 at 31 December 2023.
EBITDA amounted to Ȗ501.1 million (EBITDA margin: 17.1%) at 30 September 2024 compared to Ȗ500.2 million (EBITDA margin: 17.1%) for the same period of 2023. EBIT amounted to Ȗ302.0 million (EBIT margin: 10.3%) compared to Ȗ312.8 million (EBIT margin: 10.7%) for the same period of 2023.
Net interest expense for the period totalled Ȗ37.1 million (Ȗ14.8 million at 30 September 2023) and included interest expense amounting to Ȗ21.6 million (Ȗ15.1 million at 30 September 2023) and net exchange losses of Ȗ15.5 million (net exchange gains of Ȗ0.3 million at 30 September 2023). Income from investments for the period was Ȗ11.1 million compared to Ȗ12.1 million at 30 September 2023.
Pre-tax profit was Ȗ276.0 million compared to Ȗ310.1 million at 30 September 2023. Based on the tax rates applicable under current tax regulations in force in each country, estimated taxes amounted to Ȗ76.1 million (Ȗ77.2 million at 30 September 2023), with a tax rate of 27.6% compared to 24.9% for the same period of the previous year.
The period ended with a net profit of Ȗ197.2 million compared to Ȗ231.1 million for the same period of the previous year (-14.7%).
Net financial debt at 30 September 2024 amounted to Ȗ637.0 million, up Ȗ182.2 million compared to 31 December 2023. Excluding the impact of IFRS 16, net financial debt would have been Ȗ462.0 million, up Ȗ178.4 million compared to 31 December 2023.
Significant Events After 30 September 2024
Placement of the stake in Pirelli
On 2 October 2024, Brembo N.V. announced the successful completion of the placement of its entire stake of ordinary shares in Pirelli & C. S.p.A. by way of an accelerated bookbuilding process.
The placement was made to institutional investors and referred to the entire stake of 55,800,000 ordinary shares in Pirelli, representing approximately 5.58% of the Company's share capital, at Ȗ5.07 per share.
The overall amount of Ȗ282.9 million was collected on 4 October 2024, for a total return on investment of about Ȗ90 million.
Acquisition of Öhlins Racing
On 11 October 2024, Brembo NV signed an agreement for the acquisition of a 100% stake in Öhlins Racing, the leading manufacturer of premium, high performance suspension technology for motorcycles and cars in the original equipment, motorsport, and aftermarket segments.
Öhlins Racing is projected to close 2024 with a turnover in the range of USD 144 million, with an expected adjusted EBITDA margin between 21% and 22%.
The purchase price, amounting to USD 405 million (approximately Ȗ370 million), on a cash free/debt free basis, is subject to customary price adjustment mechanisms and will be paid using available cash.
The acquisition is subject to customary regulatory approvals and is expected to close in early 2025.
Foreseeable Evolution
Although the geopolitical scenario and the current automotive market at global level are not showing signs of improvement, Brembo expects to close 2024 with revenues in line with the previous year and an EBITDA margin at 17%. With regard to its net financial position, the Group expects to reach Ȗ300 million at year-end, with net investments of Ȗ400 million.
Annexed hereto are the unaudited Statement of Income, the Statement of Financial Position and the Statement of Cash Flows.
For information:
Luca Di Leo Chief Communication Officer +39 035 6052164 [email protected]
Daniele Zibetti Corporate Media Relations +39 035 6053138 [email protected] Roberto Grazioli Chief Investor Relations Officer +39 035 6055828 [email protected]
Laura Panseri Investor Relations Senior Manager +39 035 6052145 [email protected]
CONSOLIDATED STATEMENT OF INCOME
| (Euro million) | 30.09.2024 | 30.09.2023 | Change | % | Q3 '24 | Q3 '23 | Change | % |
|---|---|---|---|---|---|---|---|---|
| Revenue from contracts with customers | 2,927.8 | 2,919.0 | 8.8 | 0.3% | 923.0 | 969.1 | (46.2) | -4.8% |
| Other revenues and income | 28.9 | 23.1 | 5.8 | 25.2% | 17.6 | 3.6 | 14.0 | 388.5% |
| Costs for capitalised internal works | 21.6 | 18.4 | 3.2 | 17.6% | 6.2 | 5.7 | 0.5 | 9.0% |
| Raw materials, consumables and goods | (1,343.2) | (1,382.6) | 39.5 | -2.9% | (427.2) | (457.5) | 30.3 | -6.6% |
| Income (expense) from non-financial investments | 12.0 | 12.9 | (0.8) | -6.3% | 3.9 | 3.4 | 0.5 | 13.8% |
| Other operating costs | (600.0) | (589.4) | (10.6) | 1.8% | (199.1) | (203.2) | 4.2 | -2.1% |
| Personnel expenses | (546.1) | (501.1) | (45.0) | 9.0% | (174.7) | (164.9) | (9.8) | 6.0% |
| GROSS OPERATING INCOME | 501.1 | 500.2 | 0.9 | 0.2% | 149.7 | 156.1 | (6.5) | -4.2% |
| % of revenue from contracts with customers | 17.1% | 17.1% | 16.2% | 16.1% | ||||
| Depreciation, amortisation and impairment losses | (199.1) | (187.4) | (11.7) | 6.2% | (66.5) | (61.3) | (5.2) | 8.5% |
| NET OPERATING INCOME | 302.0 | 312.8 | (10.8) | -3.5% | 83.2 | 94.9 | (11.7) | -12.3% |
| % of revenue from contracts with customers | 10.3% | 10.7% | 9.0% | 9.8% | ||||
| Net interest income (expense) | (37.1) | (14.8) | (22.3) | 151.5% | (19.1) | (8.1) | (11.0) | 136.0% |
| Interest income (expense) from investments | 11.1 | 12.1 | (1.0) | -8.3% | 0.0 | (0.1) | 0.1 | -123.8% |
| RESULT BEFORE TAXES | 276.0 | 310.1 | (34.1) | -11.0% | 64.0 | 86.7 | (22.6) | -26.1% |
| % of revenue from contracts with customers | 9.4% | 10.6% | 6.9% | 8.9% | ||||
| Taxes | (76.1) | (77.2) | 1.1 | -1.4% | (22.4) | (22.3) | (0.2) | 0.7% |
| Result from discontinued operations | 0.0 | (0.1) | 0.1 | -100.0% | 0.0 | 0.1 | (0.1) | -100.0% |
| RESULT BEFORE MINORITY INTERESTS | 199.9 | 232.8 | (32.9) | -14.2% | 41.6 | 64.5 | (22.9) | -35.4% |
| % of revenue from contracts with customers | 6.8% | 8.0% | 4.5% | 6.7% | ||||
| Minority interests | (2.7) | (1.8) | (0.9) | 53.8% | (0.8) | (1.2) | 0.4 | -35.4% |
| NET RESULT FOR THE PERIOD | 197.2 | 231.1 | (33.9) | -14.7% | 40.9 | 63.3 | (22.4) | -35.4% |
| % of revenue from contracts with customers | 6.7% | 7.9% | 4.4% | 6.5% | ||||
| BASIC/DILUTED EARNINGS PER SHARE (euro) | 0.62 | 0.71 | 0.13 | 0.20 |
| (Euro million) | A 30.09.2024 |
B 31.12.2023 |
A-B Change |
|---|---|---|---|
| ASSETS | |||
| NON-CURRENT ASSETS | |||
| Property, plant, equipment and other equipment | 1,411.6 | 1,353.5 | 58.0 |
| Right-of-use assets | 169.3 | 169.3 | 0.0 |
| Development costs | 105.9 | 104.4 | 1.5 |
| Goodwill and other indefinite useful life assets | 119.7 | 119.6 | 0.1 |
| Other intangible assets | 76.5 | 76.7 | (0.2) |
| Shareholdings valued using the equity method | 59.9 | 60.2 | (0.3) |
| Investments in other companies | 307.8 | 280.1 | 27.6 |
| Financial derivatives | 11.5 | 20.4 | (8.9) |
| Other non-current financial assets | 2.4 | 2.9 | (0.5) |
| Receivables and other non-current assets | 46.6 | 41.7 | 4.9 |
| Deferred tax assets TOTAL NON -CURRENT ASSETS |
108.5 2,419.8 |
97.7 2,326.6 |
10.8 93.2 |
| CURRENT ASSETS | |||
| Inventories | 657.1 | 621.7 | 35.4 |
| Trade receivables | 682.7 | 604.9 | 77.9 |
| Other receivables and current assets | 124.5 | 94.5 | 30.0 |
| Financial derivatives | 9.7 | 12.9 | (3.2) |
| Other current financial assets | 3.0 | 3.1 | (0.1) |
| Cash and cash equivalents | 484.9 | 510.1 | (25.2) |
| TOTAL CURRENT ASSETS | 1,961.9 #RIF! |
1,847.2 #RIF! |
114.7 #RIF! |
| TOTAL ASSETS | 4,381.7 | 4,173.9 | 207.8 |
| EQUITY AND LIABILITIES | |||
| GROUP EQUITY | |||
| Share capital | 7.0 | 34.7 | (27.7) |
| Other reserves | 60.0 | 48.2 | 11.9 |
| Retained earnings/(losses) | 1,915.5 | 1,679.8 | 235.7 |
| Net result for the period | 197.2 | 305.0 | (107.9) |
| TOTAL GROUP EQUITY | 2,179.7 0.0 | 2,067.8 0.0 | 111.9 0.0 |
| MINORITY INTERESTS | 33.3 0.0 | 31.6 0.0 | 1.7 0.0 |
| TOTAL EQUITY | 2,213.1 | 2,099.4 | 113.7 |
| NON-CURRENT LIABILITIES Non-current payables to banks |
499.5 | 487.6 | 11.9 |
| Long-term lease liabilities | 153.2 | 149.8 | 3.4 |
| Financial derivatives | 4.4 | 0.0 | 4.4 |
| Other non-current financial payables | 0.3 | 0.7 | (0.4) |
| Other non-current liabilities | 2.4 | 3.9 | (1.5) |
| Non-current provisions | 20.3 | 24.2 | (3.9) |
| Employee benefits | 42.0 | 36.4 | 5.5 |
| Deferred tax liabilities | 27.8 | 31.0 | (3.1) |
| TOTAL NON -CURRENT LIABILITIES | 749.9 | 733.5 | 16.4 |
| CURRENT LIABILITIES | |||
| Current payables to banks | 465.4 | 272.3 | 193.1 |
| Short-term lease liabilities | 21.8 | 21.5 | 0.3 |
| Financial derivatives | 0.2 | 0.2 | 0.0 |
| Other current financial payables | 0.5 | 58.0 | (57.5) |
| Trade payables Tax payables |
681.2 16.8 |
742.1 11.6 |
(60.9) 5.3 |
| Current provisions | 6.1 | 9.6 | (3.6) |
| Contract liabilities | 69.8 | 75.5 | (5.7) |
| Other current liabilities | 156.8 | 150.3 | 6.6 |
| TOTAL CURRENT LIABILITIES | 1,418.7 0.0 | 1,340.9 0.0 | 77.8 0.0 |
| TOTAL LIABILITIES | 2,168.6 | 2,074.4 | 94.2 |
| TOTAL EQUITY AND LIABILITIES | 4,381.7 | 4,173.9 | 207.8 |
NET SALES BREAKDOWN BY GEOGRAPHICAL AREA AND BY APPLICATION
| (Euro million) | 30.09.2024 | % | 30.09.2023 | % | Change | % | Q3 '24 | % | Q3 '23 | % | Change | % |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| GEOGRAPHICAL AREA | ||||||||||||
| Italy | 261.0 | 8.9% | 277.0 | 9.5% | (16.0) | -5.8% | 69.8 | 7.6% | 82.4 | 8.5% | (12.6) | -15.3% |
| Germany | 597.1 | 20.4% | 593.6 | 20.3% | 3.4 | 0.6% | 188.5 | 20.3% | 192.8 | 19.9% | (4.3) | -2.2% |
| France | 76.5 | 2.6% | 74.7 | 2.6% | 1.8 | 2.4% | 21.9 | 2.4% | 24.4 | 2.5% | (2.5) | -10.1% |
| United Kingdom | 159.9 | 5.5% | 136.1 | 4.7% | 23.8 | 17.5% | 47.7 | 5.2% | 42.5 | 4.4% | 5.1 | 12.1% |
| Other European countries | 355.9 | 12.2% | 387.6 | 13.3% | (31.7) | -8.2% | 107.7 | 11.7% | 124.8 | 12.9% | (17.2) | -13.8% |
| India | 117.1 | 4.0% | 103.4 | 3.5% | 13.7 | 13.2% | 36.4 | 3.9% | 36.7 | 3.8% | (0.4) | -1.0% |
| China | 428.5 | 14.5% | 395.4 | 13.5% | 33.2 | 8.4% | 149.8 | 16.2% | 135.5 | 14.0% | 14.4 | 10.6% |
| Japan | 25.3 | 0.9% | 18.9 | 0.6% | 6.4 | 33.7% | 9.3 | 1.0% | 6.5 | 0.7% | 2.7 | 41.9% |
| Other Asian Countries | 42.5 | 1.5% | 35.0 | 1.2% | 7.5 | 21.5% | 15.5 | 1.7% | 12.0 | 1.2% | 3.5 | 29.1% |
| South America (Argentina and Brazil) | 59.2 | 2.0% | 61.6 | 2.1% | (2.4) | -3.9% | 21.1 | 2.3% | 21.6 | 2.2% | (0.5) | -2.5% |
| North America (USA, Mexico & Canada) | 780.0 | 26.6% | 810.8 | 27.8% | (30.7) | -3.8% | 246.9 | 26.8% | 279.9 | 28.9% | (33.0) | -11.8% |
| Other Countries | 24.9 | 0.9% | 25.0 | 0.9% | (0.1) | -0.4% | 8.5 | 0.9% | 9.9 | 1.0% | (1.4) | -14.1% |
| Total | 2,927.8 | 100.0% | 2,919.0 | 100.0% | 8.8 | 0.3% | 923.0 | 100.0% | 969.1 | 100.0% | (46.2) | -4.8% |
| (Euro million) | 30.09.2024 | % | 30.09.2023 | % | Change | % | Q3 '24 | % | Q3 '23 | % | Change | % |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| APPLICATION | ||||||||||||
| Passenger Car | 2,174.1 | 74.3% | 2,130.9 | 73.1% | 43.2 | 2.0% | 706.7 | 76.5% | 724.2 | 74.7% | (17.5) | -2.4% |
| Motorbike | 352.9 | 12.1% | 358.9 | 12.3% | (6.1) | -1.7% | 103.2 | 11.2% | 111.7 | 11.6% | (8.4) | -7.6% |
| Commercial Vehicle | 257.9 | 8.8% | 284.6 | 9.7% | (26.7) | -9.4% | 73.8 | 8.0% | 88.5 | 9.1% | (14.7) | -16.7% |
| Racing | 141.9 | 4.8% | 144.3 | 4.9% | (2.4) | -1.6% | 38.6 | 4.2% | 44.8 | 4.6% | (6.1) | -13.7% |
| Miscellaneous | 1.0 | 0.0% | 0.3 | 0.0% | 0.7 | 267.9% | 0.6 | 0.1% | 0.0 | 0.0% | 0.6 -7044.4% | |
| Total | 2,927.8 | 100.0% | 2,919.0 | 100.0% | 8.8 | 0.3% | 923.0 | 100.0% | 969.1 | 100.0% | (46.2) | -4.8% |
Following an in-depht analysis, data at 30 September 2023 have been restated.
MAIN RATIOS
Euro thousand
| 30.09.2020 | 30.09.2021 | 30.09.2022 | 30.09.2023 | 30.09.2024 | |
|---|---|---|---|---|---|
| Net operating income/Revenue from contracts with customers | 7.1% | 11.0% | 11.1% | 10.7% | 10.3% |
| Result before taxes/Revenue from contracts with customers | 5.9% | 10.9% | 11.4% | 10.6% | 9.4% |
| Net investments(*)/Revenue from contracts with customers | 6.7% | 6.9% | 7.4% | 8.1% | 8.5% |
| Net financial debt/Equity | 36.3% | 29.0% | 32.4% | 21.9% | 28.8% |
| Adjusted net interest expense (**)/Revenue from contracts with customers | 0.7% | 0.4% | 0.4% | 0.5% | 0.7% |
| Adjusted net interest expense (**)/Net operating income | 9.3% | 3.6% | 3.2% | 4.8% | 7.1% |
| ROI | 9.3% | 13.6% | 14.2% | 15.3% | 13.9% |
| ROE | 9.2% | 14.1% | 14.5% | 14.0% | 12.4% |
Notes:
ROI: Net operating income (rolling 12 months)/Net invested capital.
Euro million
ROE: Net income (loss) before minority interests (rolling 12 months) (net of Result from discontinued operations)/Equity.
(*) Net investments in property, plant, equipment and intangible assets, calculated as the sum total of increases (net of decreases) of property, plant and equipment and intangible assets.
(**) This item does not include exchange gains and losses.