A 2022 in the running for Pirelli which closed the first nine months of the year with double-digit growth in all financial parameters and decided to raise the guidance on revenues and cash generation.
Pirelli's 9-month accounts
In detail, Pirelli archived the first 9 months of 2022 with revenues equal to 5,033 billion euros, up by 26,5% compared to the same period of 2021 (+20% the organic change excluding the exchange rate effect equal to +6,5%).
Also on the rise is the'ebit adjusted which amounts to 753,5 million euros, up 26,8% from 598,8 million as at 30 September 2021. The margin adjusted ebit remained unchanged at 15%.
Grows by 52,1% the net profit, which rose to 359,3 million thanks to the improvement in operating performance.
Going forward with the data, the net cash flow before dividends stands at -323,2 million euro from -376,7 million in the same period last year, while the operating cash flow is positive for 87,4 million euros, an improvement of 171,9 million euros compared to -84,5 million as at 30 September 2021.
La net financial position it stands at -3,39 billion euros. It was -3,714 billion as of September 30, 2021 and -2,9 billion as of December 31, 2021.
In the first nine months of 2022 i overall volumes were unchanged "due to the effect of a different trend between High Value (+6,6%) and Standard (-7,6%) for both Car and Motorcycle", Pirelli explains in a note, while the price/mix recorded a 20% increase thanks to price increases in all Regions to counter the growing inflation of production factors, the improvement of the product mix, linked to the progressive migration from Standard to High Value and the improvement of the micro-mix of both segments.
Third quarter accounts
As regards the third quarter of 2022 alone, i revenues grew by 29,8% (+21,2% the organic change excluding the exchange rate effect of +8,6%) to 1,836 billion, theadjusted ebit rose by 22,8% to 271 million euros, with a Adjusted Ebit margin at 14,8%, and the net profit recorded an increase of 20,7% to 126,3 million euros.
I overall volumes increased by 1,8% (+8,2% the High Value segment and -5,7% Standard), while the Price/Mix increased by 19,4%.
Finally, the net cash flow before dividends it was positive for 140,5 million euro. It was at +104,3 million euros in the third quarter of 2021.
Pirelli improves its 2022 targets
By virtue of the results achieved, Pirelli has improved its 2022 targets. Based on the new estimates, i expected revenues amount to approximately 6,5 billion euro, up on the 6,2-6,3 billion previously indicated. There generation of net cash before dividends is expected at approximately 480 million euros (previous indication between 450 and 470 million euros), while the net financial position it is confirmed at -2,6 billion euro with a ratio between Pfn/Adjusted Ebitda expected at around 1,9 times (=2 times the previous indication).
Plan targets up to 2025 updated in the second half of 2023, two years above expectations
Pirelli has announced that, on the occasion of the publication of the 2022 preliminary results (expected in February 2023) it will communicate the 2023 targets, while in the second quarter of the same year will update the targets for the three-year period 2023-2025, confirming the deleverage target with a Net financial position/Adjusted Ebitda ratio of around 1x at the end of 2025.
“With the 2022 financial year, continues the note, the first phase of the industrial plan is closed 2021-2022 with a view to 2025 presented to the market on 31 March 2021: based on the results for the first nine months and the 2022 targets indicated above, and the performance achieved in 2021, the two-year period will close with results significantly higher than expected”. In particular, the cumulative cash generation before dividends for the two-year period 2021-2022 is expected to be 910 million euros compared to the range of around 700-800 million euros indicated in March 2021.
Paccioretti appointed executive vice president of Finance and Services
Pirelli also communicated that, from 14 November, Antonio Paccioretti he will take on the role of executive vice president of Finance and Services and will report directly to the deputy CEO, Giorgio Luca Bruno. Paccioretti will coordinate the Tax, Finance, M&A and Risk Management, Real Estate and Facility, Information Security and Administration, Planning and Controlling areas.
Fabio Bocchio, in his role as executive vice president of Administration, Planning and Controls reporting to Antonio Paccioretti, was appointed by the board of directors, on the proposal of the executive vice president and CEO Marco Tronchetti Provera, as the new manager in charge of preparing the corporate accounting documents with effect from 3 November 2022 to replace Giorgio Luca Bruno.
