Brembo’s board of directors has released its half-year financial results.
Brembo Group’s net consolidated revenues amounted to €1,262.4 million (approximately $1474.55 million) in the first half of 2017, up by 10.1 percent 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., consolidated as of May 1, 2016, revenues increased by 8 percent.
Almost all market segments in which the group operates positively contributed to the results of the reporting period. Car applications rose by 11.6 percent, motorbike applications by 15.6 percent and the racing sector by 4.6 percent. The commercial vehicles sector closed the first half of the year with a slight decrease by 2.6 percent.
At geographical level, sales in Italy grew by 15.6 percent and in Germany by 3.3 percent, while France and the United Kingdom recorded a decrease of 13.1 percent and 1.2 percent, respectively.
The positive trend of Asian countries continued in the period: India grew by 31.7 percent (+24.9 percent on a like-for-like exchange rate basis), and China by 63.2 percent, also thanks to the contribution of Asimco Meilian Braking System. By contrast, Japan declined by 10.5 percent.
American countries also performed well, with the NAFTA area (United States, Mexico and Canada) up by 6 percent and the South America (Brazil and Argentina) increasing by 25.2 percent (+13.9 percent on a like-for-like exchange rate basis).
In the first half of 2017, the cost of sales and other net operating costs amounted to €797.3 million (approximately $931.29 million USD), with a 63.2 percent ratio to revenues, down in percentage terms compared to the same period of the previous year (the first half of 2016: 64 percent).
Personnel expenses amounted to €215.8 million (approximately $252.07 million USD), with a 17.1 percent ratio to revenues, compared to €192.2 million (approximately $224.50 million USD, or 16.8 percent ratio to revenues) for the first half of 2016. Workforce at June 30, 2017 numbered 9,429, an increase of 387 employees compared to Dec. 31, 2016 (total workforce: 9,042) and of 546 employees compared to June 30, 2016 (total workforce: 8,883).
EBITDA for the first half of 2017 amounted to €255.5 million (approximately $298.44 million USD, EBITDA margin: 20.2 percent), up by 12.8 percent compared to the same period of 2016.
Depreciation and amortization for the reporting period grew by 24.2 percent to €66 million (approximately $77.09 million), due to the significant investments made in previous periods.
EBIT amounted to €189.5 million (approximately $221.35 million USD, EBIT margin: 15.0 percent), up 9.3 percent compared to H1 2016.
The reporting period ended with a net profit of €136.7 million (approximately $159.67 million USD), up 7.6 percent compared to €127.1 million (approximately $148.46 million) for the same period of the previous year.
Chairman Alberto Bombassei said, “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. Besides 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.”
Matteo Tiraboschi, executive deputy chairman of Brembo, said, “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 percent, also achieved thanks to the rapid start-up of plants in the U.S. 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.”
