Results for the first half year 2017


 BREMBO: H1 2017 REVENUES +10.1% TO €1,262.4 MILLION, EBITDA €255.5 MILLION (+12.8%; EBITDA MARGIN: 20.2%) NET PROFIT AT €136.7 MILLION (+7.6%).

Compared to H1 2016 :

- Revenues increased by 10.1% to €1,262.4 million 

- EBITDA +12.8% to €255.5 million;

- EBIT +9.3% to €189.5 million

- Net investments amounted to €161.5 million
- Net financial debt was €259.7 million, in line with the first half of the previous year


Chairman Alberto Bombassei stated: “I believe that the good results reported for the first half of 2017 and approved today by the Board of Directors are particularly satisfying because they were achieved thanks to a dynamic across-the-board performance of the market segments and geographical areas. Beside the excellent performance of motorbike applications — a business that is growing sharply at global level, driven particularly by India, but back to healthy growth in Europe as well — mention should also be made of the results of the car applications sector, supported by a particularly innovative product portfolio and effective sales and production strategies. In geographical terms, the sustained growth in the Indian and Chinese markets is accompanied by growth in the United States, which still ranks as Brembo’s top world market, good progress in Italy and renewed signs of recovery in South America.”

Executive Deputy Chairman Matteo Tiraboschi stated: “In the first half of 2017, we achieved a very healthy set of objectives, including the strengthening of our industrial footprint secured by the rapid progress of works on the new plants in China, Mexico and Poland. An analysis of the results confirms, on the one hand, a two-digit percentage increase in revenues. On the other hand, it is important to note the extraordinary EBITDA margin, above 20%, also achieved thanks to the rapid start-up of plants in the USA and Mexico. Net financial debt remained in line with the first half of 2016, despite the substantial investments in production capacity. All this confirms once again the Company’s excellent state of health and the effectiveness of our medium- and long-term strategies.”


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.

Brembo Group’s 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.


Foreseeable Evolution
Order book projections allow us to look to the future with cautious optimism, despite the scenario of global volatility.


The manager in charge of the Company’s financial reports, Matteo Tiraboschi, declares, pursuant to paragraph 2 of Article 154-bis of Italy's Consolidated Law on Finance, that the accounting information contained in this press release corresponds to the documented results, books and accounting records.

Annexed hereto are the audited Statement of Income, the Statement of Financial Position and the Cash Flow Statement.

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