H1 2017 Results
Brembo’s Board of Directors chaired by Alberto Bombassei examined and approved the Group’s half-year results at 30 June 2017.
net consolidated revenues amounted to €1,262.4 million in the first half of 2017, up by 10.1% compared to the same period of the previous year. On a like-for-like consolidation basis, excluding the contribution of Asimco Meilian Braking Systems (Langfang) Co. Ltd., consolidated as of 1 May 2016, revenues increased by 8.0%.
Almost all market segments in which the Group operates positively contributed to the results of the reporting period. Car applications rose by 11.6%, motorbike applications by 15.6% and the racing sector by 4.6%. The commercial vehicles sector closed the first half of the year with a slight decrease, at -2.6%.
At geographical level, sales in Italy grew by 15.6% and in Germany by 3.3%, while France and the United Kingdom recorded a decrease of 13.1% and 1.2%, respectively.
The positive trend of Asian countries continued in the period: India grew by 31.7% (+24.9% on a like-for-like exchange rate basis), and China by 63.2%, also thanks to the contribution of Asimco Meilian Braking System. By contrast, Japan declined by 10.5%.
American countries also performed well, with the NAFTA area (United States, Mexico and Canada) up by 6.0% and the South America (Brazil and Argentina) increasing by 25.2% (+13.9% on a like-for-like exchange rate basis), confirming the signs of a possible market recovery that had started to emerge in late 2016.
In H1 2017, the cost of sales and other net operating costs amounted to €797.3 million, with a 63.2% ratio to revenues, down in percentage terms compared to the same period of the previous year (H1 2016: 64.0%).
Personnel expenses amounted to €215.8 million, with a 17.1% ratio to revenues, compared to €192.2 million (16.8% ratio to revenues) for the first half of 2016. Workforce at 30 June 2017 numbered 9,429, an increase of 387 employees compared to 31 December 2016 (total workforce: 9,042) and of 546 employees compared to 30 June 2016 (total workforce: 8,883).
EBITDA for H1 2017 amounted to €255.5 million (EBITDA margin: 20.2%), up by 12.8% compared to the same period of 2016. Depreciation and amortisation for the reporting period grew by 24.2% to €66.0 million, due to the significant investments made in previous periods.
EBIT amounted to €189.5 million (EBIT margin: 15.0%), up 9.3% compared to H1 2016.
Net interest expense for the period amounted to €3.1 million (€7.3 million at 30 June 2016); this item included interest expense for €4.3 million (€4.6 million in H1 2016) and net exchange gains for €1.1 million (net exchange losses of €2.8 million in the same period of the previous year). Pre-tax profit was €186.5 million (14.8% of revenues), compared to €166.0 million for H1 2016.
Based on the tax rates applicable under current tax regulations, estimated taxes amounted to €48.0 million (€38.6 million in H1 2016), with a tax rate of 25.7% (23.2% in the same period of the previous year).
The reporting period ended with a
net profit of €136.7 million, up 7.6% compared to €127.1 million for the same period of the previous year.
Net financial debt at 30 June 2017 was €259.7 million, essentially in line with the figure at 30 June 2016, but increasing compared to 30 December 2016 (+€64.0 million), chiefly due to the considerable investments undertaken in the first half of the year (€161.5 million) in order to achieve the previously announced increase in production capacity.