Source: Brembo announcement
STEZZANO, Italy – Brembo revenues were down 14.8 percent for 2020 (when compared to 2019) closing out the year at €2,208.6 million. Net profits for the year were €136.5 million.
Chairman Alberto Bombassei commented on the results, “The results approved today by Brembo’s Board of Directors are proof that the Company was managed effectively and carefully in a critical year, succeeding in protecting the Group’s profitability by rapidly and incisively containing the negative impact felt by the reference market.
“Brembo’s performance in 2020 bears witness to the Group’s solidity and allows us to resume the distribution of dividends to our shareholders, after the suspension of last year due to the outbreak of the Covid-19 pandemic.
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“Our performance in the fourth quarter was particularly encouraging: our main markets of operation showed signs of a recovery, particularly China and India which grew at double-digit rates.
“ Although the market scenario continues to be shaped by considerable uncertainty, Brembo began 2021 with solid fundamentals, determined to respond to the impact of the health crisis by continuing to protect the health of its employees and to support its clients in rising to the challenges and taking advantage of the opportunities offered by a rapidly changing automotive industry, thanks to innovative solutions in pursuit of increasingly sustainable mobility.”
Results at the conclusion of 2020
Brembo Group’s net consolidated revenues amounted to €2,208.6 million, down 14.8 percent compared to 2019 (-13.3% on a like-for-like exchange rates basis).
In 2020, the cost of sales and other net operating expenses amounted to €1,405.3 million, with a 63.6% ratio to sales, up in percentage terms compared to 62.7 percent for the previous year.
Personnel expenses stood at €425.0 million, with a 19.2 percent ratio to revenues, slightly increasing from the previous year’s figure (18.0 percent of sales).
The company ended the year with 11,039 employees, increasing the total by 171 compared to the previous year (10,868).
EBITDA for 2020 totalled €388.7 million (EBITDA margin: 17.6 percent), compared to €515.2 million (EBITDA margin: 19.9 percent) for 2019.
Net of depreciation, amortisation and impairment losses for €207.6 million, EBIT was €181.1 million (8.2 percent of sales).
Net interest expense amounted to €25.2 million for the year ended 31 December 2020 (€11.1 million in 2019) and consisted of net exchange losses of €8.1 million (net exchange gains of €3.2 million in 2019) and other net interest expense of €17.1 million (€14.3 million for the previous year).
Results for the Fourth Quarter of 2020
Brembo Group’s net consolidated revenues for the fourth quarter of 2020 amounted to €648.7 million, up 4.5 percent compared to the same quarter of the previous year (plus 7.8 percent on like-for-like exchange rates).
At geographical level, in the fourth quarter of 2020 nearly all the markets in which the Group operates showed signs of a recovery after the overall downturn that had impacted the most part of 2020 following the health emergency that is still ongoing.
Sales grew by 7.9 percent in Italy, 0.9 percent in Germany, and 1.3 percent in France, whereas the United Kingdom showed a 5.1 percent decline.
As far as non-EU countries are concerned, India rose by 22.1 percent (+34.0% on a like-for-like exchange rate basis), China grew by 19.4 percent (+21.3% on a like-for-like exchange rate basis), whereas Japan ended the period at -22.1 percent (-21.3 percent on a like-for-like exchange rate basis).
South America decreased by 21.1 percent (9.2 percent increase on a like-for-like exchange rate basis), whereas North America (USA, Canada and Mexico) rose by 3.5 percent (+9.8 percent on a like-for-like exchange rate basis).
With regard to the market segments, car applications increased by 2.6 percent, motorbike applications by 6.4 percent, applications for commercial vehicles by 15.9 percent and racing applications by 8.1 percent.
Further details on Brembo’s fiscal results can be viewed by clicking HERE.