Brembo’s H1 Revenue Hits Record High

Brembo‘s first half of 2024 shows a robust performance with revenues exceeding €2 billion for the first time. The company’s EBITDA also demonstrated growth, highlighting its ability to maintain profitability amidst challenging geopolitical and market conditions. Brembo continues to invest ambitiously, particularly in Asia and the Aftermarket, while advancing its digital evolution with recent strategic acquisitions.

Key Highlights:

  • Revenues: €2,004.8 million, up 2.8% compared to H1 2023 (+3.3% on a like-for-like exchange rate basis)
  • EBITDA: €351.4 million (EBITDA margin: 17.5%)
  • EBIT: €218.8 million (EBIT margin: 10.9%)
  • Net Investments: €186.5 million
  • Net Financial Debt: €613.6 million
Brembo

Brembo Executive Chairman Matteo Tiraboschi stated, “Brembo closed the half year exceeding €2 billion revenue for the first time. EBITDA also continued to grow, demonstrating the Group’s ability to ensure profitability despite the pressures of the harsh geopolitical and market situation. Although the context remains complex, we continue to pursue with confidence our ambitious investment plan, in line with the strategies we are implementing to support the expansion of our global manufacturing and project-related capacity, particularly in Asia and in the Aftermarket. Moreover, we are forging ahead with our digital evolution, as witnessed by the recent acquisition of a stake in the U.S. startup Spoke Safety, specialising in connected mobility solutions.”

Detailed First Half 2024 Results

Brembo’s Board of Directors approved the Group’s results for the period ending 30 June 2024. The company’s net consolidated revenues amounted to €2,004.8 million, marking a 2.8% increase compared to the previous year (+3.3% on a like-for-like exchange rate basis).

Sales by Segment:

  • Car Segment: Increased by 4.3%
  • Motorbike Applications: Increased by 1.0%
  • Racing Applications: Increased by 3.8%
  • Commercial Vehicles: Decreased by 6.1%

Geographical Sales Performance:

  • Italy: Declined by 1.7%
  • Germany: Increased by 1.7%
  • France: Increased by 7.3%
  • United Kingdom: Increased by 20.5% (+19.0% on a like-for-like exchange rate basis)
  • North America (USA, Mexico, Canada): Increased by 0.4% (+0.5% on a like-for-like exchange rate basis)
  • South America (Brazil, Argentina): Decreased by 4.6% (-4.5% on a like-for-like exchange rate basis)
  • India: Increased by 21.1% (+22.6% on a like-for-like exchange rate basis)
  • China: Increased by 7.2% (+11.1% on a like-for-like exchange rate basis)
Brembo

The cost of sales and other net operating costs totaled €1,290.1 million, representing a 64.4% ratio to sales, an improvement from the 65.6% of sales recorded in H1 2023. Personnel expenses amounted to €371.4 million, up from 17.2% to 18.5% of sales.

EBITDA reached €351.4 million (17.5% margin), compared to €344.0 million (17.6% margin) in H1 2023. EBIT stood at €218.8 million (10.9% margin), slightly higher than the €217.9 million (11.2% margin) recorded in H1 2023. Net interest expenses increased to €18.0 million from €6.6 million in H1 2023. Pre-tax profit decreased to €211.9 million from €223.4 million. Estimated taxes were €53.7 million, reflecting a tax rate of 25.3%, up from 24.6%.

The net profit for the first half of 2024 was €156.3 million, down 6.8% from €167.8 million in the previous year. Net financial debt increased to €613.6 million, with the impact of IFRS 16 excluded, the debt stood at €435.0 million.

Significant Events Post June 2024

On 10 July, Brembo announced the acquisition of a stake in Spoke Safety, a U.S. startup focused on digital communication technologies between vehicles and the road ecosystem. This investment enhances Brembo’s expertise in software and cloud connectivity, aiming to facilitate communication between braking systems and other connected elements in the environment. This acquisition joins the portfolio of Brembo Ventures, supporting innovation and new mobility solutions.

Future Outlook

Despite the challenging automotive market and geopolitical tensions, Brembo anticipates moderate revenue growth for the year, maintaining percentage margins similar to those of 2023.

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