BREMBO: 2017 REVENUES GREW BY 8.1% TO €2,463.6 MILLION

3/5/2018

EBITDA AT €480.0 MILLION (+8.2%), EBIT AT €346.3 MILLION (+5.7%), NET PROFIT: €263.4 MILLION (+9.5%). DIVIDEND OF €0.22 PER SHARE.

Compared to 2016 results:


• Revenues grew by 8.1% to €2,463.6 million (+9.0% on a like-for-like exchange rate basis)
  
• Good growth of margins: EBITDA +8.2% to €480.0 million; EBIT +5.7% to €346.3 million

• Net profit grew by 9.5% to €263.4 million

• Net investments amounted to €356.2 million

• Net financial debt at €218.6 million

• Proposal to distribute an ordinary dividend of €0.22 per share

 

 

Chairman Alberto Bombassei stated: “In 2017, Brembo clearly demonstrated its ability to swiftly exploit the new strategic investments in countries identified as priorities in pursuit of continuing growth and development of products in collaboration with our customers. At the same time, constant innovation of existing plants and processes continued and our product portfolio expanded further, driven by our constant focus on cutting-edge research and its actual application to materials and braking systems capable of meeting — and often anticipating — the needs of an automotive market in the midst of a rapid transformation. I also believe that it is now finally possible — on the strength of the long series of positive signs that continued during the reporting year — to consider the resumption of growth in the South American markets on which Brembo operates to have gained greater stability.”

Executive Deputy Chairman Matteo Tiraboschi stated: “I feel it is especially important to draw attention to Brembo’s very positive performances, also in light of its considerable investments, which in 2017 reached an all-time record level. The Group will see a new cycle of investments brought to conclusion in 2018, and in particular the completion of the plants announced in Mexico, Poland and China, which will gradually become operational over the course of the year. This is yet further proof of the solidity of our core business. We are also satisfied with the further reduction of our net financial position compared to the figure at 30 September 2017, despite significant investments. This is proof of the Group’s ability to self-finance.”


 

Results at 31 December 2017


Brembo S.p.A.’s Board of Directors, chaired by Alberto Bombassei, met today and approved the Group’s annual results at 31 December 2017. Brembo Group’s net consolidated revenues amounted to €2,463.6 million, up 8.1% compared to 2016 (+9.0% on a like-for-like exchange rate basis). On a like-for-like exchange rate and consolidation basis — excluding the contribution of Asimco Meilian Braking Systems (Langfang) Co. Ltd, consolidated as of 1 May 2016 — the Group’s revenues rose by 7.9%.
All the segments in which the Group operates grew in 2017: the car applications sector closed the year with an 8.9% increase compared to 2016. Growth was also reported by motorbike applications (+10.6%) and the racing sector (+6.2%). The commercial vehicles sector remained virtually stable at +0.7%. ​

 

At geographical level, Germany — Brembo’s second largest reference market with 23.0% of sales — showed a 7.1% increase compared to 2016; Italy grew by 12.7%, the United Kingdom by 2.1%, while France decreased by 11.6%.
Sales in North America (USA, Canada and Mexico) — Brembo’s top market accounting for 25.3% of total sales — reported a 2.5% decrease, chiefly due to the depreciation of the dollar.
Net of that effect, the year-on-year change was -0.8%. South America (Argentina and Brazil) increased by 17.6%. The main Asian markets performed very well, with China up 34.2% (on a like-for-like consolidation basis, following the acquisition with effect from 1 May 2016; revenues rose by 23.4%). A good performance was also reported in India (+27.2%), whereas Japan decreased by 3.6%. In 2017, the cost of sales and other net operating expenses amounted to €1,560.8 million, with a 63.4% ratio to sales, down in percentage terms compared to 64.0% for the previous year. Personnel expenses amounted to €436.1 million with a 17.7% ratio to revenues, slightly increasing from the previous year’s figure (17.0% in 2016).
Workforce at 31 December 2017 numbered 9,837, an increase of 795 compared to the previous year (9,042). This increase reflects the expansion of the Group’s production capacity at the global level. ​


 

EBITDA for the year totalled €480.0 million (EBITDA margin: 19.5%), compared to €443.7 million (EBITDA margin: 19.5%) for 2016. EBIT amounted to €346.3 million (EBIT margin: 14.1%) compared to €327.5 million (EBIT margin: 14.4%) for 2016. Amortisation, depreciation and impairment losses increased by 15.0% to €133.7 million and reflect the large investments made in the previous periods.

Net interest expense amounted to €10.9 million for the year ended 31 December 2017 (€15.4 million in 2016) and consisted of net exchange losses of €1.6 million (net exchange losses of €5.5 million in 2016) and net interest expense of €9.3 million (€9.9 million in the previous year). Pre-tax profit was €335.5 million, compared to €312.2 million for the previous year. Based on tax rates applicable under current tax regulations, estimated taxes amounted to €67.6 million, with a tax rate of 20.2%, compared to €69.2 million in 2016 (tax rate of 22.2%). Said reduction is chiefly attributable to the lower US taxation.

Net profit for the year amounted to €263.4 million, up 9.5% compared to €240.6 million in 2016. Net financial debt at 31 December 2017 was €218.6 million, increasing by €22.9 million compared to 31 December 2016 (€195.7 million) and with a €31.8 million reduction compared to 30 September 2017 (€250.4 million). ​


 

Results for the Fourth Quarter of 2017


In Q4 2017 alone, consolidated revenues amounted to €611.6 million, up by 8.2% compared to Q4 2016.
EBITDA amounted to €110.8 million (EBITDA margin: 18.1%), up 3.9% compared to Q4 2016. EBIT totalled €76.0 million (EBIT margin: 12.4%), up 3.5% compared to Q4 2016.
The tax rate for the fourth quarter was 3.8%, chiefly due to the adjustment of deferred tax liabilities to the new US federal income tax rate effective from 1 January 2018. The period ended with a net profit of €67.0 million, up 23.0% compared to the same period of 2016. ​


 

Brembo S.p.A. | P.IVA 00222620163

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