Brembo's Record-Breaking Financial Results

Brembo has announced unprecedented financial results for the year ended December 31, 2023, showcasing a remarkable increase in revenues, margins, and net profits, all reaching historic highs. The company’s revenues surged to €3.8 billion, while net profits topped €300 million for the first time. This financial growth is accompanied by a significant decrease in debt and substantial investments exceeding €430 million. Brembo is also expanding its global footprint with a new production site in Thailand, emphasizing its commitment to innovation and leadership in the automotive industry.

Key Highlights:

Revenues reached €3.8 billion, a 6.1% increase year-over-year.
Net profit exceeded €300 million, marking a historic achievement.
Investments surpassed €430 million, demonstrating Brembo’s commitment to growth and innovation.
Net financial debt reduced, showcasing strong financial health.
Expansion into Thailand to capture growth in Southeast Asia.

The Board of Directors, under Matteo Tiraboschi’s leadership, reviewed these results, highlighting the growth across all vehicle segments, with the car segment growing by 7.2%, commercial vehicles by 7.8%, and racing vehicles by an impressive 13.6%. However, motorbike applications saw a 4.1% decline. Geographically, Brembo experienced sales increases in several key markets, with notable growth in Germany (11.8%), France (12.4%), and significant expansion in the South American market (24.9%).

Financial Performance in Detail:

EBITDA stood at €665.8 million, with an EBITDA margin of 17.3%.
EBIT reached €414.1 million, with an EBIT margin of 10.8%.
The cost of sales and other net operating costs amounted to €2,518.8 million, slightly improving in efficiency compared to the previous year.

The company’s strategic moves, including the opening of its first production site in Thailand, are aimed at strengthening its position in the two-wheeler segment and seizing growth opportunities in Southeast Asia. This initiative is part of Brembo’s broader ambition to remain an industry leader amidst the automotive world’s transformative shifts.

For the future, Brembo anticipates revenue growth in the mid-single digit range, barring significant macro-economic or geopolitical changes. This outlook is supported by the company’s strong order book and ongoing strategic initiatives.

Additionally, Brembo has focused on sustainability and non-financial performance, updating its materiality analysis and aligning its Disclosure of Non-Financial Information with the latest EU directives. This reflects the company’s commitment to transparency and sustainable growth.

The next General Shareholders’ Meeting is scheduled for April 23, 2024, where key financial and strategic decisions will be discussed, including dividend distributions and the approval of financial statements.

Bottom Line

Brembo’s record-breaking financial performance in 2023 sets a new standard for the company, reflecting its strategic investments, operational excellence, and commitment to innovation and sustainability. With its expansion into new markets and ongoing digital and industrial evolution, Brembo is well-positioned to continue its growth trajectory and leadership in the automotive industry.

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