Pirelli records growing results in the third quarter of 2021. I revenues amounted to 3.979,3 million euros, with an increase of 28,6% compared to the first nine months of 2020 thanks to the increase in demand. The data signal a further strengthening of the segment High Value equal to 71,4% of group turnover (71,2% in the first nine months of 2020), in line with the targets for the year. Driving the growthpositive price/mix trend by 6,3% in the nine months and by +10,5% in the third quarter supported by price increases and the improvement in the product and channel mix.
Pirelli recorded a net profit of 236,2 million euros in the first nine months of 2021, from a loss of 17,8 million in the previous year, on revenues that grew by 28,6% (+31% organic) to 3,979 billion of Euro. Also in the same period, the adjusted EBITDA amounted to 598,8 million euros (280,4 million in the corresponding period of 2020), with an adjusted Ebit margin of 15%, an improvement compared to 9,1% in 2020 thanks to the contribution of internal levers (volumes, price/mix, efficiencies) which more than offset the negative external scenario (raw materials, inflation, exchange rate impact).
As of September 30, 202, thenet borrowing is equal to -3.714,9 million euros against -4.252,5 million euros at 30 September 2020 and -3.818,7 million euros at 30 June 2021.
The liquidity margin, equal to 30 million euros at 2021 September 1.540, guarantees coverage of maturities on the debt due to banks and other lenders until the first half of 2023 thanks also to the company's right to extend the bank debt maturing in June 2022 for another two years.
Net cash flow before dividends also improved significantly, reaching -376,7 million euros in the third quarter, against -745,3 million euros in 2020 and 252,2 million euros compared to -628,9, 2019 million euros in the first nine months of XNUMX.
While the trend of the volumes in the first nine months (+24,7%) reflects the recovery in demand in the main geographical areas and particularly concerned High Value (+27,8% volumes) but also Standard (+21,8%), with a strengthening of the market share in both segments. In particular, on the Car ≥18”, Pirelli recorded an increase of 31%, higher than the market trend (+21%). The volumes of the Car ≥19” segment showed marked growth, recording an increase of +38% against a market growing by +27%. Even for Car ≤17” the growth in volumes in the first nine months (+17%) was more marked than that of the market (+12%) thanks to the strong recovery in demand in South America.
In the third quarter of 2021, the trend in global demand for car tires (-5%) mainly reflects the decline in the Original Equipment market (-20%), due to the semiconductor shortage. Demand in the Replacements channel rose slightly (+1%) which also discounts the impact of the new lockdown measures in Apac.
Finally, the group has improved has 2021 guidance confirmed. Pirelli forecasts global growth in tire demand of around +7%, down from the +10% indicated, due to the continuation of the semiconductor crisis throughout the automotive supply chain. Revenues expected to be between 5,1 and 5,15 billion euros, (the previous target between approximately 5 and approximately 5,1 billion euros), with volumes expected at +14/15% (in line with the previous revised rise in August). The prospects for the generation of net cash before dividends are also good, seen to improve between around 390 and around 410 million euro (the target revised upwards in August between around 360 and around 390 million).
