Brembo

9M

2024

Results

07 November 2024

Results at 30 September 2024:

• Revenues at €2,927.8 million (+0.3%; +0.8% on a like-for-like exchange rate basis)
• EBITDA at €501.1 million (EBITDA margin: 17.1%); EBIT at €302.0 million (EBIT margin: 10.3%)
• Net investments at €268.7 million
• Net financial debt at €637.0 million (€462.0 million prior to the application of IFRS 16)

Brembo Executive Chairman Matteo Tiraboschi stated: 

“The results for the first nine months of 2024 show the strong resilience achieved by the Group thanks to its medium-long term strategy, against an automotive industry that is facing severe difficulties at global level. We maintained revenues and EBITDA in line with the already positive same period of 2023, also thanks to the good performance of the aftermarket. Brembo continues to invest, despite a macroeconomic context that remains significantly complex. We announced the acquisition — the largest in the Group’s history — of Öhlins, the global leading manufacturer of suspension technology. This industrial investment will strengthen Brembo's positioning on the market to provide integrated intelligent solutions to our customers."

Results at 30 September 2024

Brembo’s Board of Directors, chaired by Matteo Tiraboschi, examined and approved the Group’s results at 30 September 2024.

Net consolidated revenues amounted to €2,927.8 million, up 0.3% (+0.8% on a like-for-like exchange rate basis) compared to the first nine months of the previous year. 

In the reporting period, Brembo's car segment rose by 2.0%, also thanks to the good performance of the aftermarket segment. 

Motorbike applications declined by 1.7%, applications for commercial vehicles by 9.4% and racing applications by 1.6% compared to the first nine months of 2023.

At geographical level, Brembo's sales in Italy decreased by 5.8%, whereas sales in Germany remained substantially stable (+0.6%); France grew by 2.4% and the United Kingdom by 17.5% (+16.2% on a like-for-like exchange rate basis). 

India grew by 13.2% (+15.0% on a like-for-like exchange basis) and China by 8.4% (+10.9% on a like-for-like exchange basis). 

The North American market (USA, Mexico and Canada) decreased by 3.8% (-3.5% on a like-forlike exchange rate basis) and the South American market (Brazil and Argentina) by 3.9% (+0.6% on a like-for-like exchange rate basis).

At 30 September 2024, the cost of sales and other net operating costs amounted to €1,892.6 million, with a 64.6% ratio to sales, declining in percentage terms compared to the same period of the previous year (66.1% of sales, equal to €1,930.5 million). 

Personnel expenses amounted to €546.1 million, with an 18.7% ratio to sales, increasing compared to the same period of the previous year (17.2% of sales, equal to €501.1 million). At 30 September 2024, Brembo People numbered 15,849, compared to 15,674 at 30 September 2023 and 15,653 at 31 December 2023.

EBITDA amounted to €501.1 million (EBITDA margin: 17.1%) at 30 September 2024 compared to €500.2 million (EBITDA margin: 17.1%) for the same period of 2023. EBIT amounted to €302.0 million (EBIT margin: 10.3%) compared to €312.8 million (EBIT margin: 10.7%) for the same period of 2023.

Net interest expense for the period totalled €37.1 million (€14.8 million at 30 September 2023) and included interest expense amounting to €21.6 million (€15.1 million at 30 September 2023) and net exchange losses of €15.5 million (net exchange gains of €0.3 million at 30 September 2023). Income from investments for the period was €11.1 million compared to €12.1 million at 30 September 2023.

Pre-tax profit was €276.0 million compared to €310.1 million at 30 September 2023. Based on the tax rates applicable under current tax regulations in force in each country, estimated taxes amounted to €76.1 million (€77.2 million at 30 September 2023), with a tax rate of 27.6% compared to 24.9% for the same period of the previous year.

The period ended with a net profit of €197.2 million compared to €231.1 million for the same period of the previous year (-14.7%).

Net financial debt at 30 September 2024 amounted to €637.0 million, up €182.2 million compared to 31 December 2023. Excluding the impact of IFRS 16, net financial debt would have been €462.0 million, up €178.4 million compared to 31 December 2023.

Significant Events After 30 September 2024

Placement of the stake in Pirelli

On 2 October 2024, Brembo N.V. announced the successful completion of the placement of its entire stake of ordinary shares in Pirelli & C. S.p.A. by way of an accelerated bookbuilding process. The placement was made to institutional investors and referred to the entire stake of 55,800,000 ordinary shares in Pirelli, representing approximately 5.58% of the Company’s share capital, at €5.07 per share. 

The overall amount of €282.9 million was collected on 4 October 2024, for a total return on investment of about €90 million.

Acquisition of Öhlins Racing

On 11 October 2024, Brembo NV signed an agreement for the acquisition of a 100% stake in Öhlins Racing, the leading manufacturer of premium, high performance suspension technology for motorcycles and cars in the original equipment, motorsport, and aftermarket segments. 

Öhlins Racing is projected to close 2024 with a turnover in the range of USD 144 million, with an expected adjusted EBITDA margin between 21% and 22%. 

The purchase price, amounting to USD 405 million (approximately €370 million), on a cash free/debt free basis, is subject to customary price adjustment mechanisms and will be paid using available cash. 

The acquisition is subject to customary regulatory approvals and is expected to close in early 2025.

Foreseeable Evolution

Although the geopolitical scenario and the current automotive market at global level are not showing signs of improvement, Brembo expects to close 2024 with revenues in line with the previous year and an EBITDA margin at 17%. 

With regard to its net financial position, the Group expects to reach €300 million at year-end, with net investments of €400 million.

For information:

Luca Di Leo - Chief Communications Officer

E-mail: luca.dileo@brembo.com 

Daniele Zibetti - Corporate Media Relations

E-mail: daniele.zibetti@brembo.com 

Roberto Grazioli - Chief Investor Relations Officer
E-mail: roberto.grazioli@brembo.com

Laura Panseri - Investor Relations Senior Manager
E-mail: laura.panseri@brembo.com