Q3 2016 Results
Brembo’s Board of Directors chaired by Alberto Bombassei met today and approved Brembo Group’s quarterly results at 30 September 2016.
net consolidated revenues for the third quarter of 2016 amounted to €566.8 million, up 11.1% 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 — the increase for the quarter was 8.0%.
Car applications once again contributed the most to revenue growth with a 13.3% increase. The motorbike sector also performed well, growing by 12.5%; the racing sector grew, though more slightly, showing a +3.4% increase, whereas the commercial vehicles sector remained virtually unchanged (+0.5%).
At geographical level, compared to the third quarter of 2015, sales increased in Italy (+8.5%), Germany (+3.7%) and the United Kingdom (+17.7%), whereas in France sales declined by 10.0%. In Asia, the Indian market rose by 7.1% (+11.0% net of exchange rate effect). China performed well, growing 123.0%, also thanks to the inclusion of the recently acquired Asimco Meilian Braking Systems in the scope of consolidation. Growth in China was strong at 61.8% also on a like-for-like consolidation basis.
North America (USA, Canada and Mexico) showed a 5.5% increase in sales for the reporting quarter. South America (Argentina and Brazil) showed a turnaround after a long period of downtrend, growing 6.4% (+25.1% on a like-for-like exchange rate basis).
In the third quarter of 2016, the cost of sales and other net operating expenses amounted to €362.8 million, up by 7.4% compared to €337.7 million for the same period of the previous year. In percentage terms, the ratio to sales of this item decreased to 64.0% from 66.2% for the third quarter of 2015.
Personnel expenses totalled €96.3 million, with a 17.0% ratio to revenues, slightly up compared to 16.3% for the same period of the previous year. At 30 September 2016, workforce numbered 9,007 (7,867 at 31 December 2015 and 7,809 at 30 September 2015). The increase of 1,140 employees compared to 31 December 2015 was attributable for 654 resources to the Asimco Meilian Braking Systems’ inclusion in the scope of consolidation, and for the remainder to the Group’s production expansion at global level.
EBITDA for Q3 2016 amounted to €110.6 million (EBITDA margin: 19.5%), up by 20.3% compared to the same period of 2015.
Amortisation, depreciation and impairment losses rose by 3.5% to €29.8 million.
EBIT amounted to €80.7 million (EBIT margin: 14.2%), up 28.0% compared to Q3 2015.
Net interest expense for Q3 2016 totalled €4.5 million (€2.3 million for Q3 2015). This item includes interest expense amounting to €2.5 million (€2.8 million in Q3 2015) and net exchange losses for €2.0 million (exchange gains of €0.5 million for the same period of the previous year).
Pre-tax profit was €76.3 million (13.5% of revenues), compared to €60.8 million for the same period of 2015.
Based on the tax rates applicable under current tax regulations, estimated taxes amounted to €16.2 million (€17.6 million in Q3 2015), with a tax rate of 21.2% compared to 28.9% for the same period of 2015.
The reporting period ended with a net profit of €59.1 million, up 37.0% compared to €43.2 million for the same period of the previous year.
Net financial debt at 30 September 2016 was €256.6 million, compared to €160.7 million at 31 December 2015, and essentially in line with the figure at 30 June 2016 (€259.4 million).
Cumulative results year to 30 September 2016
In the period ended 30 September 2016, net consolidated revenues of the Brembo Group amounted to €1,713.7 million, up 10.6%.
On a like-for-like consolidation and exchange rate basis, revenues grew by 11.8%. EBITDA for the period amounted to €337.1 million (EBITDA margin: 19.7%), up by 26.3% compared to the same period of 2015.
EBIT amounted to €254.1 million (EBIT margin: 14.8%), up 37.8% compared to the first nine months of 2015.
The period ended with a net profit of €186.2 million, up 40.9% compared to €132.1 million for the same period of the previous year.