Results for the First Quarter of 2018
Brembo’s Board of Directors chaired by Alberto Bombassei examined and approved the Group’s quarterly results at 31 March 2018.
Net consolidated revenues amounted to €657.9 million in Q1 2018, up 4.0% compared to Q1 2017 (+8.7% on a like-for-like exchange rate basis).
In the quarter under review, nearly all the market segments contributed to revenue growth, except for the racing sector, which declined by 8.2%. Car applications rose by 3.7%, motorbikes by 6.8% and commercial vehicles by 10.9%.
At geographical level, sales grew by 9.5% in Germany and by 10.9% in the United Kingdom; conversely, sales dropped by 5.3% in Italy and by 7.1% in France. Asia continued to show a significant uptrend: India rose by 14.8% (+27.5% on a like-for-like exchange rate basis), China by 7.4% (+14.3% on a like-for-like exchange rate basis) and Japan by 11.1% (+12.4% on a like-for-like exchange rate basis).
The North American market (the United States, Mexico and Canada) decreased by 8.9%, but reported a 3.6% increase on a like-for-like exchange rate basis. South America (Brazil and Argentina) also performed well, up 1.7% (+25.4% on a like-for-like exchange rate basis).
In Q1 2018, the cost of sales and other net operating costs amounted to €420.1 million, with a 63.8% ratio to sales that remained virtually unchanged compared to the same period of the previous year (63.6% ratio to sales at €402.1 million).
Personnel expenses amounted to €115.5 million, with a 17.5% ratio to sales, slightly increasing compared to the same period of the previous year (17.0% of sales). At 31 March 2018, workforce numbered 10,154, compared to 9,837 at 31 December 2017 and 9,235 at 31 March 2017.
EBITDA for Q1 2018 amounted to €126.6 million (EBITDA margin: 19.2%), up 0.9% compared to the same period of 2017.
EBIT was €91.6 million (EBIT margin: 13.9%), down 1.3% compared to Q1 2017 as a result of the 7.0% increase in amortisation, depreciation and impairment losses.
Net interest expense for the quarter amounted to €1.5 million (€1.4 million in Q1 2017); this item includes interest expense amounting to €2.1 million (€2.0 million in Q1 2017) and exchange gains for €0.6 million (unchanged compared to Q1 2017).
Pre-tax profit was €90.0 million (13.7% of revenues), compared to €91.4 million for Q1 2017.
Based on the tax rates applicable under current tax regulations in force in each country, estimated taxes amounted to €21.1 million (€22.9 million in Q1 2017), with a tax rate of 23.4% compared to 25.0% for the same period of 2017.
The reporting period ended with a net profit of €68.2 million, up 0.8% compared to €67.7 million for the same period of the previous year.
Net financial debt at 31 March 2018 amounted to €275.7 million, increasing by €57.1 million compared to 31 December 2017.