H1 2018 Results
Brembo’s Board of Directors chaired by Alberto Bombassei examined and approved the Group’s half-year results at 30 June 2018.
Brembo Group’s net consolidated revenues amounted to €1,339.7 million in the first half of 2018, up by 6.1% compared to the same period of the previous year. On a like-for-like exchange rate basis, revenues increased by 10.1%.
Almost all market segments in which the Group operates positively contributed to the results of the reporting period: car applications rose by 6.9%, motorbikes by 2.7% and commercial vehicles by 10.5%, while the racing sector showed a 6.6% decline.
At geographical level, sales in Italy decreased slightly by -3.2%, while in Germany sales rose by 11.0%, in France by 20.7% and in the United Kingdom by 6.8%.
Asia continued to report growth: India grew by 13.3% (+26.7% on a like-for-like exchange rate basis), and China by 15.5% (19.6% on a like-for-like exchange rate basis). By contrast, Japan declined by 13.0% (-11.9% on a like-for-like exchange rate basis).
The North American market (the United States, Mexico and Canada) decreased by 6.6%, but reported a 3.4% increase on a like-for-like exchange rate basis.
South America (Brazil and Argentina) declined by 6.4%, but reported an 18.8% increase on a like-for-like exchange rate basis.
In H1 2018, the cost of sales and other net operating costs amounted to €852.2 million, with a 63.6% ratio to sales, virtually in line with the same period of the previous year (H1 2017: 63.2%).
Personnel expenses amounted to €236.1 million, with a 17.6% ratio to sales, compared to €215.8 million (17.1% of sales) for the first half of 2017. Workforce at 30 June 2018 numbered 10,384, an increase of 547 employees compared to 31 December 2017 (total workforce: 9,837) and of 955 employees compared to 30 June 2017 (total workforce: 9,429).
EBITDA amounted to €259.9 million (EBITDA margin: 19.4%), up by 1.7% compared to the same period of 2017.
Depreciation and amortisation for the reporting period grew by 11.7% to €73.8 million, due to the significant investments made in previous periods.
EBIT amounted to €186.1 million (EBIT margin: 13.9%), down 1.8% compared to H1 2017.
Net interest expense for the period amounted to €5.6 million (€3.1 million at 30 June 2017); this item included interest expense amounting to €4.4 million (€4.3 million in H1 2017) and net exchange losses for €1.2 million (net exchange gains of €1.1 million in the same period of the previous year). Pre-tax profit was €180.6 million (13.5% of revenues), compared to €186.5 million for H1 2017.
Based on the tax rates applicable under current tax regulations, estimated taxes amounted to €39.0 million (€48.0 million in H1 2017), with a tax rate of 21.6% (25.7% in the same period of the previous year).
The reporting period ended with net profit of €140.1 million, up 2.5% compared to €136.7 million for the same period of the previous year.
Net financial debt at 30 June 2018 amounted to €263.1 million, decreasing by €12.6 million compared to 31 March 2018.