Brembo Reports Record Financials in 2022

STEZZANO, Italy — Brembo reported record annual revenues in 2022 at €3,629 MILLION, a figure representing a 30.7-percent increase when compared to those of 2021.

Accompanying the revenue increase was a 35.9-percent jump in net profits year-to-year which translated to €292.8 MILLION and the net financial position improved by €128.6 MILLION when compared to that of Sept. 30th.

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Quoting from the company’s official statement, Executive Deputy Chairman Matteo Tiraboschi said: “Brembo closed 2022 on a satisfactory note. In terms of revenues, margins and net profit, we reported the highest figures ever in the Company’s history. All the main segments in which we operate contributed to this result.

“This milestone was reached in spite of the complexities of a year especially marked by the consequences of the war in Ukraine and persistent inflation pressures on the raw material markets. The strategy that has been outlined in the past few years has proven capable to effectively maintain Brembo’s competitiveness at the highest levels, in a context that remains challenging.

“The innovation of our solutions continues to be focused on digitalization and sustainability — two key elements for the Brembo of tomorrow. The development of our innovative smart braking system Sensify, as well as the frontier research of the California-based Brembo Inspiration Lab, is heading in this direction.

“To further support this path, in October 2022 we announced the incorporation of Brembo Ventures, our new venture capital unit tasked with investing in the best technological start-ups. We have entered the new year aware that the results achieved in 2022 will be the foundation for continuing to invest in our future.”

Following the acquisition of the Spanish J.Juan Group, effective Novl. 1, 2021, the consolidation scope changed; on a like-for-like consolidation basis, the increase was 27.6 percent. On a like-for-like exchange rate and consolidation basis, revenues rose by 22 percent compared to the previous year.

At geographical level, all the main markets in which the Group operates grew in the reporting period compared to the previous year. Sales increased by 10.5 percent in Italy, by 33.8 percent in Germany and by 18.5 percent in France, whereas the United Kingdom declined slightly (-1.8 percent).

As far as non-EU countries are concerned, India grew by 40.4 percent (+32.9 percent on a like-for-like exchange rate basis), China by 30.4 percent (+21.5 percent on a like-for-like exchange rate basis), while Japan closed at -9.6 percent (-9.9 percent on a like-for-like exchange rate basis).

South America grew by 66.1 percent (+43.0 percent on a like-for-like exchange rate basis) and North America (USA, Canada and Mexico) rose by 48.8 percent (+34.3 percent on a like-for-like exchange rate basis).

With regard to the market segments, car applications increased by 30.5 percent, motorbike applications by 44.3 percent (+18.2 percent on a like-for-like consolidation basis), applications for commercial vehicles by 19.2 percent and racing applications by 23.7 percent.

To view the entire financial announcement, click HERE.

In 2022, the cost of sales and other net operating expenses amounted to €2,404.6 million, with a 66.3 percent ratio to sales, slightly up in percentage terms compared to 64.2 percent for the previous year.

Personnel expenses amounted to €616.2 million, with a 17.0 percent ratio to sales, down compared to the previous year (18.2 percent of sales). At 31 December 2022, Brembo people, including agency workers, numbered 14,966, increasing by 1,369 compared to 13,597 the previous year.

EBITDA for 2022 totalled €625.2 million (EBITDA margin: 17.2 percent), compared to €502.7 million (EBITDA margin: 18.1 percent) for 2021.

Net interest expense amounted to €8.5 million for the year ended 31 December 2022 (€5.2 million in 2021) and consisted of net exchange gains of €4.6 million (€4.4 million for 2021) and other net interest expense of €13.1 million (€9.7 million for the previous year).

Based on tax rates applicable under current tax regulations, estimated taxes amounted to €88.2 million, with a tax rate of 23.1 percent.

The period ended with a net profit of €292.8 million, up 35.9 percent compared to the previous year. Net financial debt at 31 December 2022 was €502.0 million, down €128.6 million compared to 30 September 2022. Excluding the IFRS 16 impact, net financial debt amounted to €260.8 million, down €144.7 million compared to 30 September 2022.

Mike Geylin
Mike Geylin

Mike Geylin is the Editor-in-Chief at Hagman Media. Geylin has been in automotive communications for five decades working in all aspects of the industry from OEM to supplier to motorsports as well as reporting for both newspapers and magazines on the industry.