STEZZANO, Italy — Revenues were up almost 12 percent during the first half (H1) of 2023 for Brembo when compared to the same period last year, according to figures recently reported by the Italian braking firm.
In the H1 reporting period, net consolidated revenues amounted to €1,949.9 million, up 11.6% (+12.3% on a like-for-like exchange rate basis) compared to the first half of the previous year.
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Executive Chairman Matteo Tiraboschi stated: “We closed the first half of the year with very positive results, as approved by the Board of Directors. Revenues neared €2 billion, up 11.6% compared to the same period of the previous year. Margins showed a double-digit growth as well.
“This performance, driven by all the business segments and all the markets in which Brembo operates, confirms the Company’s solidity in a challenging geopolitical context and allows us to look to the second half of the year with confidence and optimism. The first half of the year was also marked by the start of operations at Brembo Solutions, a new unit dedicated to developing software solutions for business clients to improve their efficiency and competitiveness in several sectors.
Brembo Solutions opens up new opportunities for the Company, accelerating our ability to innovate in the digital arena.”
In this reporting period, the Group recorded a positive performance across all its sectors of operation: the car segment rose by 12.4%, motorbike applications by 3.7%, applications for commercial vehicles by 12.6% and those for racing vehicles by 20.6% compared to the first half of 2022.
At geographical level, sales rose by 2.7% in Italy, by 19.2% in Germany, by 18.6% in France and by 2.2% in the United Kingdom (+1.9% on a like-for-like exchange rate basis).
The North American market (USA, Mexico and Canada) grew by 12.5% (+11.6% on a like-for-like exchange rate basis) and the South American market (Brazil and Argentina) increased by 45.4% (+43.5% on a like-for-like exchange rate basis).
India grew by 9.2% (+16.3% on a like-for-like exchange rate basis), China by 2.6% (+7.8% on a like-for-like exchange rate basis) and Japan by 5.8% (+9.3% on a like-for-like exchange rate basis).
In H1 2023, the cost of sales and other net operating costs amounted to €1,279.0 million, with a 65.6% ratio to sales, virtually unchanged compared to 65.8% of H1 2022 (€1,148.5 million).
Personnel expenses amounted to €336.2 million, with a 17.2% ratio to sales, slightly decreasing compared to the same period of the previous year (17.3% of sales). On June 30,2022, Brembo staff numbered 15,550, compared to 15,305 on March 31, 2023 and 14,966 at on Dec. 31, 2022.
EBITDA amounted to €344.0 million (EBITDA margin: 17.6%) compared to €305.3 million (EBITDA margin: 17.5%) for H1 2022. EBIT amounted to €217.9 million (EBIT margin: 11.2%) compared to €187.5 million (EBIT margin: 10.7%) for H1 2022.
Net interest expense for the period amounted to €6.6 million (net interest income of €2.9 million in H1 2022) and included interest expense amounting to €9.9 million (€6.0 million in H1 2022) and net exchange gains of €3.3 million (€8.9 million in H1 2022). Income from investments was €12.2 million compared to €7.8 million in H1 2022.
Pre-tax profit was €223.4 million compared to €198.2 million for H1 2022. Based on the tax rates applicable under current tax regulations in force in each country, estimated taxes amounted to €55.0 million (€49.0 million in H1 2022), with a tax rate of 24.6% compared to 24.7% for the same period of the previous year.
The first half of the year ended with a net profit of €167.8 million, up 12.7% compared to the same period of the previous year (€148.9 million). Net financial debt as of June 30, 2023 amounted to €562.3 million, down €32.8 million compared to June 30, 2022. Excluding the impact of IFRS 16, net financial debt would have been €388.5 million, up €20.5 million compared to June 30, 2022.
Foreseeable Evolution
The orders backlog for the coming months remains robust at global level; barring significant changes in the macro-economic and geopolitical context, for the current year Brembo confirms a revenue growth of about 10%, with percentage margins in line with the previous year.
