Results for the First Quarter of 2016
Brembo’s Board of Directors chaired by Alberto Bombassei met today at the Polish plant of Dąbrowa Górnicza to celebrate the production of the one-hundred-millionth disc and approved the Group's quarterly results at 31 March 2016. p>
Brembo Group’s net consolidated revenues amounted to €563.6 million in Q1 2016, up by 9.6% compared to Q1 2015. On a like-for-like exchange rate basis, revenues increased by 10.5%.
All market segments in which the Group operates positively contributed to Q1 2016 results, with the exception of the racing sector that declined by 21.4% due to the exclusion of Sabelt S.p.A. and Belt & Buckle S.r.o. from the consolidation area; on a like-for-like comparison, there was an increase of 4.9%. The car applications increased by 12.4%, commercial vehicles by 23.8% and motorbikes by 6.3%.
At geographical level, sales in Germany rose by 11.4%, in the United Kingdom by 24.0% and in France by 13.7%. By contrast, Italy reported a slight decrease (-2.6%). Asian countries continued on their positive performance: India grew by 9.0% (+15.6% on a like-for-like exchange rate basis), China by 13.9% (+16.8% on a like-for-like exchange rate basis) and Japan by 39.9%. The North American market also performed well, with sales in the United States, Mexico and Canada up by 12.6% (+10.5% on a like-for-like exchange rate basis), while in South America (Brazil and Argentina) sales further declined by 37.7% (-12.1% on a like-for-like exchange rate basis), due to the continuing difficulties of the macroeconomic and market situation.
In Q1 2016, the cost of sales and other net operating costs amounted to €364.5 million, with a 64.7% ratio to sales, down in percentage terms compared to the same period of the previous year (66.2% ratio to sales for €340.3 million).
Personnel expenses amounted to €92.3 million, with a 16.4% ratio to revenues, down by 1 percentage point compared to the same period of the previous year. At 31 March 2016, workforce numbered 8,080, increasing by 159 employees compared to Q1 2015.
EBITDA for Q1 2016 amounted to €109.7 million (EBITDA margin: 19.5%), up by 27.9% compared to the same period of 2015.
EBIT amounted to €84.0 million (EBIT margin: 14.9%), up 42.2% compared to Q1 2015.
Net interest expense for the quarter amounted to €4.5 million (€0.04 million in Q1 2015); this item includes interest expense amounting to €2.3 million (€3.5 million in Q1 2015) and exchange losses for €2.2 million (exchange gains of €3.5 million in Q1 2015).
Pre-tax profit was €79.5 million (14.1% of revenues), compared to €59.0 million for Q1 2015.
Based on the tax rates applicable under current tax regulations, estimated taxes amounted to €19.0 million (€13.1 million in Q1 2015), with a tax rate of 23.9% compared to 22.1% for the same period of 2015.
The reporting period ended with net profit of €60.4 million, up 31.9% compared to €45.8 million for the same period of the previous year.
Net financial debt at 31 March 2016 was €154.8 million, down by €100.4 million compared to €255.2 million at 31 March 2015 and by €5.9 million at 31 December 2015.
Significant Events After 31 March 2016
Brembo’s General Shareholders’ Meeting held on 21 April 2016 approved the Financial Statements for the year ended 31 December 2015 and the distribution of a dividend of €0.80 per share outstanding at ex-coupon date.
The payment date for the ordinary dividend will be 25 May 2016, with coupon No. 25 ex-date 23 May and record date 24 May.
Order book projections confirm that revenues will show a good growth also in the remainder of the year. The ramp-up costs relating to the new American production facilities will be incurred beginning from the second half of the year.