Results for the period ended 30 September 2017
Brembo’s Board of Directors chaired by Alberto Bombassei met today and approved the Group’s results at 30 September 2017.
net consolidated revenues for the first nine months of 2017 amounted to €1,852.0 million, up 8.1% compared to the same period of the previous year. On a like-for-like consolidation basis — therefore excluding the contribution of the recently acquired Asimco Meilian Braking Systems, included as of 1 May 2016 — the increase for the period was 6.7%.
Car applications contributed the most to revenue growth with a 9.1% increase. Growth was also reported by both the motorbike sector, which recorded an 11.2% increase, and the racing sector, up by 4.4%, whereas commercial vehicle applications slightly declined (-1.0%).
At geographical level, in the first nine months of 2017 sales increased in Italy (+14.4%), Germany (+4.5%) and the United Kingdom (+1.7%), whereas France declined by 11.6%. In Asia, the Indian market rose by 28.9% (+25.0% net of exchange rate effect). China performed well, growing by 44.8%, also thanks to the inclusion of Asimco Meilian Braking Systems (+29.1% on a like-for-like consolidation basis). Sales in North America (USA, Canada and Mexico) were essentially in line with the figures of the same period of the previous year (-0.6%). The decline in the third quarter alone (-13.8%, or -8.9% on a like-for-like exchange rate basis) was due not only to the general weakness of this market, but also to a delay in a project in the phase-out process before the entry into production of the subsequent model, also featuring Brembo technology. Such situations are typical in the automotive industry and their effects, in cases of projects involving high volumes or with significant technological content, may temporarily emerge in a specific period. South America (Argentina and Brazil) continued its positive performance, with a +19.0% increase.
In the period ended 30 September 2017, the cost of sales and other net operating expenses amounted to €1,170.2 million, up 6.7% compared to €1,096.8 million for the same period of the previous year. In percentage terms, the ratio to sales of this item decreased to 63.2% from 64.0% for the same period of 2016.
Personnel expenses totalled €321.6 million, with a 17.4% ratio to revenues, slightly up compared to 16.8% for the same period of the previous year. At 30 September 2017, workforce numbered 9,666 (9,007 at 30 September 2016 and 9,042 at 31 December 2016).
span style="text-decoration: underline;">EBITDA for the period amounted to €369.1 million (EBITDA margin: 19.9%), up by 9.5% compared to the same period of 2016. Amortisation, depreciation and impairment losses rose by 19.1% to €98.8 million.
EBIT amounted to €270.3 million (EBIT margin: 14.6%), up 6.4% compared to the same period of 2016.
In the reporting period, net interest expense totalled €6.1 million (€11.8 million in 2016). This item includes interest expense amounting to €6.7 million (€7.0 million in the first nine months of 2016) and net exchange losses of €0.6 million (net exchange losses at €4.8 million in the same period of the previous year). Pre-tax profit was €264.4 million (14.3% of revenues), compared to €242.3 million for the same period of 2016.
Based on the tax rates applicable under current tax regulations, estimated taxes amounted to €64.9 million (€54.7 million in 2016), with a tax rate of 24.5% compared to 22.6% for the same period of 2016.
The period ended with a net profit of €196.4 million, up 5.5% compared to €186.2 million for the same period of the previous year.
Net financial debt at 30 September 2017 was €250.4 million, essentially in line with the figure at 30 June 2017 (€259.7 million) and compared to €195.7 million at 31 December 2016.
Q3 2017 Results
In the third quarter of 2017 alone, Brembo Group’s net consolidated revenues rose by 4.0% to €589.6 million (+6.2% net of exchange rate effect). EBITDA amounted to €113.6 million (EBITDA margin: 19.3%), up by 2.8% compared to Q3 2016. EBIT amounted to €80.8 million (EBIT margin: 13.7%), up 0.1% compared to Q3 2016. The period ended with a net profit of €59.8 million, up 1.1% compared to €59.1 million for Q3 2016.