Pirelli closes the accounts for the first nine months of the year with growing profits, revenues and Ebitda. The earnings data, both quarterly and 9-monthly, exceeded the analysts' consensus. Here are the numbers:
- Net income 411 million euros (+14,4% compared to the same period of 2022). The figure is higher than the consensus of analysts who expected profits of around 377 million euros over the nine months. In the third quarter of the year alone, the company achieved net profits up by 33,3% to 168,4 million euros.
- revenues 5,16 billion (+2,5% and +7,4% organic variation excluding the exchange rate effect of -4,9%), while the price/mix is at +10,4%.
- Adjusted EBIT rises to 782,5 million euros (+3,8%). The adjusted EBIT margin was 15,2% (compared to 15%). Net cash flow before dividends stood at -367,7 million euros (-323,2 million in the first nine months of 2022).
- net financial position negative by 3.138,1 million euros (from -2.552,6 million at the end of 2022)
- theexchange rate impact had a negative effect of -4,9% due to the weakening of the dollar, the renminbi and the currencies of emerging countries against the euro, which was particularly more marked in the third quarter of the year (-8,4% compared of -5,4% in the second quarter and -0,3% in the first quarter).
The trend of volumes in the first nine months it is down by 3,0%, reports the press release released by the company, due to the "weakness of Car demand and the Pirelli selectivity strategy on Standard".
Pirelli: the third quarter of 2023
Looking instead at the third quarter alone, i revenues they amounted to 1.722,7 million euros, down by 6,2% compared to the third quarter of 2022 (+2,2% organic change excluding the exchange rate effect of -8,4%). L'Adjusted EBIT was equal to 265,1 million (“substantially in line with the 271,9 million in the corresponding period of 2022”). Profit above consensus and up by 33,3% to 168,4 million euros. Finally i declining volumes were down by 4,6%, with Car volumes down by 3,8% compared to -1% of the market and the price/mix was equal to +6,8% compared to the same period in 2022 "due to of the price increases – states the Pirelli note – carried out in the fourth quarter of 2022 and in the first quarter of 2023 and of the improvement of the mix”.
Pirelli, Tronchetti Provera: profitability rises. Adjusted Ebit margin revised upwards
Pirelli, with the data achieved and in consideration of the expected scenario, revises theEbit margin adjusted which rises to around 15% (from around 14,5% and lower than 15% in the previous guidance) "thanks to the support of the price/mix which will more than offset the impact of the external scenario" linked to inflation and exchange rates. The price/mix is improving to around +8%, in the upper part of the previous indication of around +7/8%. Pre-dividend net cash generation is improving and expected to be between around 450 and around 470 million euros (from around 440-470 million) with confirmed investments of around 400 million euros (6% of revenues). The net financial position (NFP) is revised to improve to approximately -2,33 billion euros with an adjusted NFP/Ebitda ratio of around 1,60-1,65x.
“The first nine months of 2023 were characterized byhigh volatility, from the macroeconomic scenario with a slowdown in demand, high inflation and progressive rate increase of interest. Despite this, Pirelli closed the period with numbers that recorded a price/mix among the best in the industry and improving profitability. These results – he continues – lead us to confirm the guidance in the high part of the range on profitability and cash'”, declared the executive vice president of Pirelli, Marco Tronchetti Provera, during the conference call with financial analysts following the publication of the company's accounts. “These results – he continued – lead us to confirm the guidance in the high part of the range on profitability and cash”.
Pirelli: the new industrial plan is postponed to March 2024
“In light of the uncertainties linked to the international framework”, the Pirelli Board of Directors has “considered it appropriate to postpone the presentation of the update of the industrial plan to 2025, initially scheduled for the end of the year, in the month of March 2024 on the occasion of the presentation of the results of the 2023 budget", concludes the group's note. In the meantime, Pirelli “confirms the deleverage objective with a report Net financial position/adjusted Ebitda equal to approximately 1 time at the end of 2025″
