In the first half of 2022 Pirelli reached a Net income of 233 million euros, up 77,1% from 131,6 million in the first half of 2021, thanks to a further improvement in operating performance. THE revenues rose by 24,6% to 3.197 million euros compared to the first half of 2021 (+19,4% the organic change excluding the exchange rate effect equal to +5,2%). THE High Value revenues are equal to 72% of the total. As for i volumes, decreased by 1,0% in the first half due to a different trend in the High Value segment (+5,8%) and the Standard segment (-8,8%) in both Car and Motorcycle.
Il price/mix recorded a significant increase of +20,4% in the half year, a record level in line with that of the first quarter and equal to that of the second quarter. L'Adjusted Ebitda was equal to 695,3 million euros, up by 21,2% compared to the 573,9 million of the first half of 2021. TheAdjusted EBIT in the first half of 2022 it amounted to 481,6 million euros (+27,6% compared to 377,4 million euros in the corresponding period of 2021), with an adjusted Ebit margin of 15,1%, an improvement compared to 14,7 .2021% in the first half of XNUMX.
Second quarter numbers
As regards the second quarter 2022,Net income was equal to 123,2 million euros, up by 37,8% compared to 89,4 million euros in the second quarter of 2021. The revenues were equal to 1.675,9 million euro, with a growth of 26,9% (+19,8% the organic change excluding the exchange rate effect equal to +7,1%). In the second quarter of 2022 i volumes overall they fell by 0,6% (+5,7% High Value and -7,9% Standard).
Remaining at the second quarter of 2022, theAdjusted EBIT was equal to 253,1 million euro, up by 21,3% thanks to the strong contribution of internal levers. The adjusted Ebit margin stood at 15,1%, stable compared to the first quarter of 2022, but slightly down compared to 15,8% in the second quarter of 2021.
Other financial data for the semester
In first semester, cash flow net before dividends was equal to -463,7 million euros, a slight improvement compared to the -481,0 million euros of the corresponding period of 2021. The net cash flow from operations in the first half improved by 108,0 million euros (to -164,7 million from -272,7 million in the first half of 2021). Net cash flow before dividends in the second quarter of 2022 was positive by €209,2 million, an improvement of €36,7 million compared to +€172,5 million in the corresponding period of 2021. This trend reflects the improvement in of operating management (+106,0 million euro).
La net financial position as at 30 June 2022 it was equal to -3.530,7 million euros (-3.818,7 million as at 30 June 2021 and -2.907,1 million euros as at 31 December 2021), with a net cash absorption before dividends of 463,7, 481,0 million euros (2021 million in the first half of 30) due to the usual seasonal nature of the business. The liquidity margin at 2022 June 2.428,4 amounted to €2024 million which guarantees coverage of maturities up to the second half of XNUMX.
Furthermore, Pirelli announces that, in compliance with the provisions of Borsa Italiana, the bond loan 'euro2023 600,000,000% Guaranteed Notes due 1.375 January 25' will expire in January 2023, the residual amount of which amounts to 553 million euros.
Tronchetti Provera: "No significant impacts in winter from EU gas crisis risk"
Pirelli is "confident that it will not have a significant impact on business continuity in the coming winter" linked to a potential risk in Europe of a gas supply crisis from Russia. This was stated by Marco Tronchetti Provera, CEO and executive vice president, during the presentation of the accounts for the first half of 2022.
"We immediately set up an interfunctional committee, defining a contingency plan aimed at guaranteeing the continuity of the production activity", said Tronchetti Provera, explaining that the plan envisages the use of alternative sources to natural gas, the acceleration of reduction of energy consumption and containment of risks associated with suppliers by verifying their exposure to risk and supporting them in the development of mitigation plans in the event of an aggravation of the scenario. As happened during the Covid-19 emergency and the Russian-Ukrainian crisis, the company will "leverage the flexibility of the production and logistics structure to ensure an adequate level of customer service".
Tronchetti Provera: "Negative impact from activities in Russia is 25-30 million"
"The overall impact of costs and lower profitability in Russia is equal to 25-30 million euros - continued Tronchetti Provera - but at the end of the year this figure could have been completely compensated", so much so that Pirelli raised some estimates for end of the year and confirmed the others.
“We remain in Russia”, Tronchetti Provera reiterated. Compared to the different choice made by other competitors who have left the country, Tronchetti added that "others are less structured in Russia than we are, they had a different presence, a different position compared to ours".
Pirelli has suspended investments in its factories in Russia with the exception of those intended for safety. Russia in 2021 represented 3% of turnover - a substantially unchanged incidence also in the first half of 2022 - and around 11% of the group's car capacity, mainly standard and around half dedicated to exports.
