Brembo H1 2022 Results

7/28/2022

 Brembo: extraordinary growth in H1 2022: revenues at €1,746.5 million, +28.3% vs H1 2021. EBITDA and EBIT up 13%, net profit at +17.3%.

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Compared to H1 2021:​

Revenues​ at €1,746.5 million (+28.3%); +19.3% on a like-for-like exchange rate and consolidation basis​;

EBITDA at €305.3 million (EBITDA margin: 17.5%);

EBIT at €187.5 million (EBIT margin: 10.7%)​;
         
         

Net investments for the period​ 

amounted to €121.6 million;


Net financial debt​ at €595.1 million (€368.0 million prior to the application of IFRS 16), up €98.2 million compared to 30 June 2021​.

 


 

Brembo Executive Chairman Matteo Tiraboschi stated: “The significant H1 results approved today by the Board of Directors are the outcome of a long-term method and strategy adopted by the whole Brembo team, which has shown strong commitment even in such a complex context, thereby ensuring performance continuity in line with the first three months of the year. Our Company continues to focus on providing customers with the utmost service quality and on innovating our solutions. This direction is actually reflected in the recently announced joint venture with a leading group in the production of high-tech braking components — a transaction that strengthens our position in an important segment for us such as the aftermarket. Although the constantly changing geopolitical and macroeconomic scenario requires us to be cautious, Brembo's solid position, the significant results achieved so far and the encouraging signals we are receiving from our reference market let us look towards the rest of the year with confidence.”​


 

H1 2022 Results​


Brembo’s Board of Directors, chaired by Matteo Tiraboschi, met today and approved the Group’s half-year results at 30 June 2022. 


In the reporting period, net consolidated revenues amounted to €1,746.5 million, up 28.3% (+23.2% on a like-for-like exchange rate basis) compared to the first half of the previous year. Following the acquisition of the Spanish J.Juan Group, effective 1 November 2021, the consolidation scope changed; on a like-for-like consolidation basis, the increase was 24.4%. On a like-for-like exchange rate and consolidation basis, revenues rose by 19.3% compared to the same period of the previous year. 


In the reporting period, the Group reported a very positive performance across all sectors in which it operates: the car segment rose by 27.6%, motorbike applications by 44.3% (+12.2% on a like-for-like consolidation basis), applications for commercial vehicles by 17.4% and those for racing vehicles by 24.2% compared to the first half of 2021. 


At geographical level, sales rose by 15.9% in Italy, by 27.5% in Germany and by 10.1% in France, whereas they declined by 3.4% in the United Kingdom (-4.1% on a like-for-like exchange rate basis). The North American market (USA, Mexico and Canada) grew by 49.8% (+37.4% on a like-for-like exchange rate basis) and the South American market (Brazil and Argentina) increased by 44.9% (+25.4% on a like-for-like exchange rate basis). India grew by 30.9% (+23.4% on a like-for-like exchange rate basis) and China by 24.6% (+14.0% on a like-for-like exchange rate basis), while Japan decreased by 25.6% (-26.4% on a like-for-like exchange rate basis). 


In H1 2022, the cost of sales and other net operating costs amounted to €1,148.5 million, with a 65.8% ratio to sales, up in percentage terms compared to 62.0% for the same period of the previous year (€843.9 million). 


Personnel expenses amounted to €301.7 million, with a 17.3% ratio to sales, decreasing compared to the same period of the previous year (18.7% of sales). At 30 June 2022, workforce numbered 12,797 (of which 628 from the J.Juan Group), compared to 12,656 at 31 March 2022 and 12,225 at 31 December 2021. 


EBITDA amounted to €305.3 million (EBITDA margin: 17.5%) compared to €270.2 million (EBITDA margin: 19.9%) for H1 2021. EBIT amounted to €187.5 million (EBIT margin: 10.7%) compared to €165.8 million (EBIT margin: 12.2%) for H1 2021. 


Net interest income for the period amounted to €2.9 million (net interest expense of €1.5 million in H1 2021) and included interest expense amounting to €6.0 million (€5.3 million in H1 2021) and net exchange gains of €8.9 million (€3.8 million in H1 2021). Income from investments was €7.8 million compared to €3.9 million in H1 2021. 


Pre-tax profit was €198.2 million compared to €168.2 million for H1 2021. Based on the tax rates applicable under current tax regulations in force in each country, estimated taxes amounted to €49.0 million (€41.4 million in H1 2021), with a tax rate of 24.7% compared to 24.6% for the same period of the previous year. 


The first half of the year ended with a net profit of €148.9 million, up 17.3% compared to the same period of the previous year. 


Net financial debt at 30 June 2022 amounted to €595.1 million, up €98.2 million compared to 30 June 2021. Excluding the impact of IFRS 16, net financial debt would be €368.0 million, up €77.8 million compared to 30 June 2021.


 

JV agreement signed with Chinese Gold Phoenix to manufacture aftermarket pads​


On 25 July, Brembo announced the incorporation of a 50/50 joint venture with Gold Phoenix, aimed at building the first large-scale site to manufacture brake pads for the aftermarket. 

The agreement is subject to local customary conditions precedent and antitrust approval. 

The JV, denominated Shandong BRGP Friction Technology Co., Ltd, will focus on innovative products with premium quality, especially in terms of performance, comfort, durability and sustainability, with a view to anticipating the challenges posed by electrification and autonomous driving. The JV will start operations at the beginning of 2023 in the city of Jinan, capital of the Shandong province, in eastern China. 

As part of the transaction, the two companies will make a total investment of €35 million over the next three years.


 

Foreseeable Evolution​


Our orders backlog for the coming months remains robust, with a good utilisation of production capacity at global level. Barring extraordinary changes in the current geopolitical situation and the macro-economic context, with particular regard to exchange rates and commodity and utilities prices, for FY 2022 the Group expects a second half of the year in line with H1 in terms of revenues and margins, thanks to the past and current long-term strategy adopted.


 
 

 

 

 


 

 


 


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

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