Piaggio Group reports first half 2024 results
Piaggio Group has reported its first-half earnings for 2024 (1H-24), with record shipments in Europe. However, slowing demand in Asia and North America led to a 15.2% sales drop.
“Once again Piaggio has reported very positive margins, in line with our targets. Our product strategy is proving correct, and our brands continue to strengthen well around the world; Moto Guzzi and Aprilia, for example, in the second quarter alone shipped a record 11,888 motorcycles in Europe,” says Piaggio Group Managing Director and CEO Michele Colaninno
Piaggio reported a slowdown in the first half, mainly in Asia and America. “For the rest of the year, we expect non-euphoric (but recovering) markets in some regions of southeast Asia,” says Colaninno “The Indian continent performed well and is expected to continue reporting improvements through 2023.”
Colaninno says the continuing international political crises have led the company to take a prudent approach. “Logistics and the current necessary destocking of world networks, largely as a result of regulatory changes, could lead to increased costs.
“Our goal continues to be to confirm excellent margins in the second half, even if sales should continue to decline,” says Colaninno.
First-half highlights:
- Consolidated net sales 990.3 million euro (1,167.2 €/M at 30.06.2023, -15.2%).
- Industrial gross margin 295 million euro (€ 327.8/mln at 30.06.2023)
29.8% return on net sales (28.1% at 30.06.2023) - EBITDA 173.8 million euro (191.2 €/mln at 30.06.2023)
EBITDA margin 17.5% (16.4% at 30.06.2023) - EBIT 104.1 million euro (117.6 €/mln at 30.06.2023).
EBIT margin 10.5% (10.1% at 30.06.2023) - Profit before tax 77.8 million euro (98.2 €/mln at 30.06.2023)
- Net profit 52.1 million euro (64.8 €/mln at 30.06.2023, -19.6%)
- NFP -408 million euro (434 €/mln at 31.12.2023)
- 270,100 vehicles sold worldwide (324,600 at 30.06.2023)
- Capital expenditure 77.3 million euro (65.8 €/mln in the first half of 2023)
- 2024 interim dividend of 11.5 eurocents per share (2023 interim dividend 12.5 eurocents)
Piaggio Group business and financial performance on June 30, 2024
- Group consolidated net sales totaled 990.3 million euro (-15.2% from 1,167.2 million euro vs 2023).
- The industrial gross margin was 295 million euros (vs 327.8 million euros in the year-earlier period, -10%), for a higher return on net sales of 29.8% (vs 28.1% in 2023).
- Group operating expense was 190.9 million euros (vs 210.2 million euros in 2023).
- The changes in the income statement described above generated a consolidated EBITDA of 173.8 million euros (vs 191.2 million euros in 2023, -9.1%). The EBITDA margin rose to 17.5% (16.4% in 2023).
- EBIT amounted to 104.1 million euros (vs. 117.6 million euros in 2023, -11.5%), and the EBIT margin was 10.5% (vs. 10.1% in 2023).
- Pre-tax profit for the first half was 77.8 million euros (vs 98.2 million euros in 2023, -20.8%). Income tax for the period was 25.7 million euros, impacting pre-tax profit by 33%.
- In the first half of 2024, the Piaggio Group reported a net profit of 52.1 million euros (vs. 64.8 million euros in 2023, -19.6%).
- Net financial debt in 2024 stood at -408 million euros, an improvement of 26,1 million euros from -434 million euros in 2023.
- Group shareholders’ equity was 443.2 million euros (vs 416 million euros in 2023).
- In the first half, Piaggio Group’s capital expenditures amounted to 77.3 million euros (65.8 million euros compared to the prior year 1H).
Business performance
In the first half of 2024, the Piaggio Group sold 270,100 vehicles worldwide (324,600 in the first half of 2023, -16.8%) and reported consolidated net sales of 990.3 million euros (vs 1,167.2 million euros in 2023).
Two-wheelers:
In the first half of 2024, the Group sold 211,200 two-wheelers worldwide (267,400 in the first half of 2023, -21%), generating net sales of 788 million euros (954.7 million euros vs 2023, -17.5%).
The figure includes spares and accessories, whose turnover totaled 80.9 million euros (84.1 million euros in the first half of 2023, -3.9%).
In Europe, the Piaggio Group had a 21.4% share of the scooter segment; in the North American scooter market, its share was 27.2%. In North America the Group also continued work to consolidate its presence on the motorcycle market with the Aprilia and Moto Guzzi brands.
Significant first-half events
In May, the new Vespa Primavera 150 and Vespa Sprint 150 made their debut on the Chinese market. A major event combining culture, design, Italian style, and fashion was held in Shanghai at the Shangsheng-Xinsuo (the Columbia Circle), the city’s new cultural complex. The evening was attended by institutional representatives, including Italy’s Consul General in Shanghai, Tiziana D’Angelo, and stars from the Asian arts world.
In June, the Piaggio Group said that the Corte di Cassazione, Italy’s supreme court of appeal, had dismissed as inadmissible the appeal filed by Peugeot Motocycles SAS and Peugeot Motocycles Italia against the ruling of the Milan Court of Appeal in January 2023, which upheld the first-instance judgment of the Court of Milan that, with the Peugeot Metropolis, the Peugeot entities had infringed the Italian portion of a Piaggio & C. S.p.A. European patent. Peugeot Motocycles Italia has been ordered to pay Piaggio & C. S.p.A. more than 1 million euros.
Michele Colaninno, chief executive officer of the Piaggio Group was elected for a second term as President of ACEM (Association des Constructeurs Européens de Motocycles), the European motorcycle industry association based in Brussels, to which all the world motorcycle and scooter groups belong.
Outlook
Due to its portfolio of iconic brands, Piaggio hopes to maintain the margins of the last few months for the full year 2024, independent of possible temporary slowdowns in some markets.
The current difficulties in international transport arising from the Israeli-Palestinian conflict and the related rise in costs and delivery times will continue to be managed through careful inventory and procurement planning, with a constant focus on the search for greater efficiency.
In light of this, Piaggio confirms the investments planned in new products in the two-wheeler sector and in commercial vehicles, and the consolidation of its commitment to ESG issues.
In Italy, important investment plans have been drawn up for the coming years, to be ready for the current energy transition.