Pirelli closed 2022 with growing results and higher than the targets indicated in November 2022, already revised upwards during the year, confirming, says a note from the tire manufacturer which is part of the FTSE MIB, "the resilience of the business model and reflecting the implementation of the key programs of the 2021-2022 | 2025 Business Plan”. For this year, Pirelli expects revenues to grow further to 6,6-6,8 billion. The Pirelli stock at Piazza Affari is 4,992 euros, up 3,89%.
2022 net profit up 35,5% year on year
The Board approved a 2022 with revenues for 6,6 billion, above target of 6,5 billion, with a growth of 24,1% compared to 2021 "thanks to the strong improvement in the price/mix", says the note, adding that the organic growth in revenues was equal to 18,7%. On the price/mix front, the company recorded an increase of 19,7%, the result of a double favorable lever: the adjustments made during the year to the price lists (implemented to counter the growing inflation) and the progressive migration from standard at high value which led to a substantial improvement in the product mix. Net profit grew by 35,5% to 435,9 million compared to 2021.
Margins drop
EBITDA adjusted in 2022 amounted to 1.408,3 million euro, up by 16,3% compared to the 1.210,7 million euro of 2021, while the marginality corresponding yes it is contracted from 22,7% to 21,3%. Similarly, adjusted EBIT increased from 815,8 to 977,8 million, with the margin down to 14,8% compared to 15,3% recorded at the end of the previous year. In the fourth quarter 2022, in particular, revenues amounted to €1,6 billion, up by 17,0% compared to the fourth quarter of 2021 thanks to the positive price/mix trend. Organic growth in revenues for the quarter was +14,8%. Pirelli also benefited from a exchange effect which turned out to be positive for 5,4%, thanks to the appreciation that various currencies of the reference markets appreciated against the euro: dollar +12%, yuan +7%, real +17% and ruble +22 %.
Il cash flow net before dividends in 2022 was positive and equal to +515,5 million euro (above the target indicated in November of 480 million euro), an improvement of 84,3 million compared to the 431,2 million euro of 2021. The net financial position at 31 December 2022 amounted to -2.552,6 million euro (-3.390,5, 30 million euros at September 2022, 2.907,1 and -31 million euros at December 2021, XNUMX).
Further growth in revenues is expected in 2023
In the light of the results achieved in 2022 and the expected macroeconomic scenario, Pirelli expects 2023 revenues between 6,6 and 6,8 billion euro, with expected volumes from stable to up 1%, price/mix improving between +4,5% and +5,5% and exchange rate impact between -4,5% and -3,5%. The adjusted EBIT Margin is expected between 14% and 14,5% and the generation of net cash before dividends between 440 and 470 million euros. The net financial position is expected to be equal to -2,35 billion euro, with a ratio between NFP/Adjusted EBITDA between 1,65 and 1,7 times. For this year, Pirelli also expects to invest 6% of revenues for a value of approximately 400 million euros.
Wang Feng enters the board of directors, Bai Xinping leaves
The board of directors co-opted dthe Wang Fengs in place of Bai Xinping who, as indicated on 14 February, resigned from the BoD. The BoD also appointed Wang Feng, qualified by the Board as a non-executive director, a member of the Remuneration Committee, the Appointments and Succession Committee and the Strategy Committee. The new director, who will remain in office until the next shareholders' meeting, is not in possession
of the independence requirements established by the law and by the Corporate Governance Code and to date
does not appear to hold shares and/or other financial instruments issued by Pirelli.
