Thursday evening, with the Stock Exchange closed, Pirelli lifted the veil on first quarter accounts, closed with growing revenues and profits. The company also has postponed the appointment of the new board of directors and, in the light of this, the update of the business plan to 2025 will take place by the end of 2023.
The quarterly of Pirelli
The first quarter of 2023 closed for pirelli with a Net income equal to 115 million, an increase of 4,7% compared to the same period last year. L'adjusted ebit rose by 8,6% to 248 million euro on revenues of 1,699 billion (+11,7% with +12% excluding an exchange rate effect of 0,3%). The margin ebit it stands at 14,6% from 15% a year ago. The consensus of analysts indicated the net profit at 109 million, the adjusted ebit at 236 million and revenues at 1,645 billion. Net cash flow before dividends is -691,4 million euros (-672,9 million in the first quarter of 2022 and -709 million according to consensus). The net financial position at the end of March was negative by 3,244 billion (-3,580 billion in March 2022).
In the light of the results achieved, Pirelli has confirmed the targets for 2023 disclosed to the market on 22 February: revenues are therefore expected to be between 6,6 and 6,8 billion with an adjusted EBIT margin in a range of "over 14%"-"14,5%". The net cash flow between 0,44 and 0,47 billion and the net financial position at approximately 2,35 billion euros with a ratio of 1,65-1,7 on the adjusted ebitda.
Pirelli: board renewal postponed
La Golden Power issue postponed the appointment of the new board of Pirelli. The current board of directors was informed by the shareholder China National Tire & Rubber that, at present, "it is foreseeable that the final provision of the Golden Power proceeding will be issued at a later date than the deadline for the presentation of the lists for the next renewal of the board of directors. Therefore, reports a note, the board of directors has resolved to convene the shareholders' meeting for June 29 in the coming days for the approval of the financial statements and decisions on the distribution of the dividend. On the other hand, the discussion of the items on the agenda relating to the renewal of the board of directors will be postponed to a subsequent meeting, "to be convened presumably by 31 July 2023 in consideration of the time foreseen for the conclusion of the Golden Power procedure".
The current board will therefore remain in office until the next news. As Radiocor explains, the Italian Government's assessment of the Golden Power legislation is linked to the renewal of the syndicate agreement between the first Chinese shareholder of Pirelli, Sinochem-ChemChina, and the Italian partners of the Bicocca group, Camfin and Marco Tronchetti Provera Spa.
The postponement of the renewal of the board also led Pirelli to decide to present theplan update to 2025 not by the second quarter of 2023, but “by the end of the financial year 2023”.
