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Pirelli: profit rises to 242,6 million, revenues +7,5% in the semester

In light of the performance recorded in the first half of the year and a macroeconomic scenario that remains volatile for 2023, the management of the tire group has revised some financial targets for 2023

Pirelli: profit rises to 242,6 million, revenues +7,5% in the semester

Pirelli it closed the first half with growth in the main economic and market indicators, which the tire group attributes to the implementation of the "key programmes" of the 2021-2022/2025 Business Plan.

From the Bicocca headquarters, they report that in the first six months of this year theNet income saw growth of 4,1% to 242,6 million euros (they were 233,0 million in the first half of 2022). In the balance sheet data approved by the board of directors i revenues they amount to 3.437,5 million euros, up by 7,5% compared to the first half of 2022 (+10,4% the organic change excluding the exchange rate effect equal to -2,9%).
EBITDA (Ebitda) adjusted amounted to 739,1 million euro, up by 6,3% compared to 695,3 million in the first half of 2022, while the Ebit adjusted is 517,4 million euros, up by 7,4% compared to the first half of 2022, with a margin of 15,1%. In Piazza Affari, the Pirelli share today fell by 0,23% to 4,83 euros, after running in the last 5 days recording a gain of 4,98%.

In the second quarter alone, revenues increased by 3,7%

In the second quarter alone, Pirelli achieved revenues of 1,74 billion, up by +3,7% compared to the second quarter of 2022. Net profit for the quarter rose to 127,6 million, compared to 123,2 million in the same period of 2022.

THEvolume trend in the first half it fell by 2,1% due to the weakness of Car demand, says Pirelli, but in the second quarter an improving trend was detected with -1,1% compared to -3,1% in the first quarter of 2023, above all thanks to the performance of the Car Original Equipment.
Il price/mix recorded an increase of +12,5% ​​in the first half of 2023 "supported by price increases to counter the growing inflation of production factors, as well as by the improvement in the product mix, linked to the progressive migration from Standard to High Value and the mix of both segments.
In the second quarter of 2023 alone, the price/mix was +10,2% compared to the second quarter of 2022 which had already recorded a significant increase of +20,4%.
THEexchange effect He had a negative impact equal to -2,9% in the first half of 2023 due to the weakening of the dollar and the currencies of emerging countries. In the second quarter of 2023 the impact of exchange rates was more marked (-5,4% compared to -0,3% in the first quarter) due to the weakening of the dollar and of the main currencies against the euro.

The management revises some estimates for 2023

"In light of the results achieved in the first half and the expected market scenario" says the note, Pirelli estimates for 2023 revenues between 6,5 and 6,7 billion euros, down from the range between 6,6 and 6,8 billion of the previous estimate. Adjusted Ebit Margin estimates have been revised upwards to between 14,5% and 15% (the previous estimate was 14% and 14,5%). Investments of approximately 400 million euros (approximately 6% of revenues) were instead confirmed.

Debt is growing. The liquidity margin guarantees coverage of maturities

At the end of June 2023 the debt net debt of Pirelli had risen to 3,09 billion euros, compared to 2,55 billion at the beginning of the year and to 3.530,7 million as at 30 June 2022, not far from the consensus of analysts indicated a debt of 3,17 billion euros. Pirelli has signaled that the margin of liquidity of 2,78 billion euros guarantees the coverage of maturities on the debt to banks and other lenders at least until the end of 2025. In the entire six months, Pirelli's operating activities absorbed cash for 301,6 million euro (-164,7 million in the first half of 2022), while tangible and intangible investments (Capex) amounted to 123,5 million euro. The cash flow net before dividends shows a -534,9 million euro, substantially stable compared to the first half of 2022 (-463,7 million in the first half of 2022) excluding the impact of the three-year LTI 2020-2022 management incentive plan.

The Board of Directors has also approved some statutory amendments in compliance with the
provisions of the Provision of the Council of Ministers of last June 16, the so-called Golden Power Decree . Prescriptions, which must be complied with by the Chinese shareholder, in order "to prepare a network of measures operating overall to protect the independence of Pirelli and its management, as well as to protect the technologies and information of strategic importance owned by the company"

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