H1 2020 Results
Brembo’s Board of Directors chaired by Alberto Bombassei examined and approved the Group’s half-year results at 30 June 2020.
In the first half of 2020, net consolidated revenues amounted to €951.1 million, down 28.2% compared to the first half of the previous year. As expected, H1 2020 results were severely impacted by the gradual spread at global level of the COVID-19 pandemic, which particularly penalised the second quarter of the year.
Within this scenario, in H1 2020, Brembo’s sales for the car segment declined by 27.7%, motorbike applications by 34.0%, applications for commercial vehicles by 25.6% and those for racing vehicles by 27.5% compared to the same period of 2019.
At geographical level, the performance of the various markets reflected the COVID-19 pandemic’s different timing of spread and the gradual adoption of containment measures by governments. Sales dropped by 25.6% in Italy, by 32.5% in Germany, by 22.5% in France and by 40.5% in the United Kingdom. In Asia, sales in India and Japan decreased by 43.4% and 12.1%, respectively, whereas in China sales declined by just 2.4%, thanks to a good recovery of the market, with Q2 sales up 23.2%.
The North American market (USA, Mexico and Canada) shrank by 34.8% and the South American market (Brazil and Argentina) by 43.9%.
In H1 2020, the cost of sales and other net operating costs amounted to €607.6 million, with a 63.9% ratio to sales, up in percentage terms compared to the same period of the previous year (H1 2019: €823.8 million; 62.2% of sales).
Personnel expenses amounted to €202.1 million, with a 21.2% ratio to sales, increasing compared to the same period of the previous year (17.8% of sales). At 30 June 2020, workforce numbered 10,731, compared to 10,868 at 31 December 2019 and 10,579 at 30 June 2019.
EBITDA for H1 2020 amounted to €143.3 million (EBITDA margin: 15.1%), compared to €270.6 million for the first half of 2019 (EBITDA margin: 20.4%). EBIT was €38.8 million (EBIT margin: 4.1%) compared to €174.5 million (EBIT margin: 13.2%) for H1 2019.
Net interest expense for the period amounted to €14.2 million (€6.7 million in H1 2019); this item includes net exchange losses for €7.6 million (net exchange gains of €1.0 million in H1 2019) and interest expense amounting to €6.6 million (€7.7 million in H1 2019).
Pre-tax profit was €24.7 million compared to €167.9 million for the first half of 2019. Based on the tax rates applicable under current tax regulations in force in each country, estimated taxes amounted to €4.5 million (€37.0 million in H1 2019), with a tax rate of 18.2% compared to 22.0% for the same period of the previous year.
The reporting period ended with a net profit of €20.0 million, accounting for 2.1% of sales.
Net financial debt at 30 June 2020 amounted to €597.5 million, increasing by €147.1 million compared to 31 March 2020. Without the impact of IFRS 16, net financial debt would have been €407.2 million, up €152.5 million compared to 31 March 2020.