Results third quarter 2023

11/7/2023

Brembo: revenues grew to €2,919 million for 9m 2023, +7% (+8.8% on a like-for-like exchange rate basis) compared to 2022; EBITDA up to €500.2 million, net profit at €231.1 million

Results at 30 September 2023

Brembo’s Board of Directors, chaired by Matteo Tiraboschi, met today, examined and approved the Group’s results at 30 September 2023.

Net consolidated revenues amounted to €2,919.0 million, up 7.0% (+8.8% on a like-for-like exchange rate basis) compared to the first nine months of the previous year. In the reporting period, the car segment grew by 7.9%, commercial vehicles by 6.9% and racing vehicles by 15.3% compared to the first nine months of 2022; motorbike applications declined by 1.0%.

At geographical level, sales rose by 2.2% in Italy, by 13.8% in Germany, by 7.2% in France and by 1.3% in the United Kingdom (+0.5% on a like-for-like exchange rate basis). The North American market (USA, Mexico and Canada) grew by 7.5% (+9.3% on a like-for-like exchange rate basis) and the South American market (Brazil and Argentina) increased by 30.6% (+29.6% on a like-for-like exchange rate basis). India grew by 6.8% (+15.6% on a like-for-like exchange rate basis), China fell by 5.3% (+1.9% on a like-for-like exchange rate basis) and Japan increased by 3.2% (+7.0% on a like-for-like exchange rate basis).

Executive Chairman Matteo Tiraboschi stated: “The results for the first nine months of 2023, approved today by the Board of Directors, reflect Brembo’s uptrend in an increasingly challenging global context. Despite the general and marked worsening of the macroeconomic and geopolitical scenario, Brembo’s revenues neared €3 billion, up 7%, consolidating the already significant results reported in the first nine months of 2022. The Company confirms its ability to generate positive cash flows and reducing debt, while forging ahead with its ambitious investment plans. We continue to focus on innovating our solutions and, thanks to our customers’ constant appreciation, we look to the future with confidence, passion and determination.”

At 30 September 2023, the cost of sales and other net operating costs amounted to €1,930.5 million, with a 66.1% ratio to sales, a percentage slightly decreasing compared to the same period of the previous year (66.3% of sales, equal to €1,807.9 million).

Personnel expenses amounted to €501.1 million, with a 17.2% ratio to sales, increasing compared to the same period of the previous year (16.6% of sales, equal to €451.7 million). At 30 September 2023, Brembo people numbered 15,674, compared to 15,208 at 30 September 2022 and 14,966 at 31 December 2022.

EBITDA amounted to €500.2 million at 30 September 2023 (EBITDA margin: 17.1%) compared to €482.3 million for the same period of 2022 (EBITDA margin: 17.7%). EBIT amounted to €312.8 million (EBIT margin: 10.7%) compared to €303.1 million (EBIT margin: 11.1%) for the same period of 2022.

Net interest expense for the period amounted to €14.8 million (net interest income of €1.4 million at 30 September 2022) and included interest expense amounting to €15.1 million (€9.6 million at 30 September 2022) and net exchange gains of €0.3 million (€11.0 million at 30 September 2022). Income from investments for the period was €12.1 million compared to €7.8 million at 30 September 2022.

Pre-tax profit was €310.1 million compared to €312.4 million at 30 September 2022. Based on the tax rates applicable under current tax regulations in force in each country, estimated taxes amounted to €77.2 million (€76.7 million at 30 September 2022), with a tax rate of 24.9% compared to 24.6% for the same period of the previous year.

The reporting period ended with a net profit of €231.1 million, down 1.6% compared to the same period of the previous year. Net financial debt at 30 September 2023 amounted to €454.1 million, down €176.6 million compared to 30 September 2022. Excluding the impact of IFRS 16, net financial debt would have been €282.4 million, down €123.2 million compared to 30 September 2022.

Foreseeable Evolution

Despite the significant changes in the global geopolitical and macroeconomic scenario and the effects of UAW (United Auto Workers) strikes in the United States, the Company expects a midhigh single digit increase in revenues for the current year and confirms percentage margins in line with the previous year.