Piaggio Group reports record Q1 results
Piaggio Group’s business and financial performance for the first quarter of 2023 resulted in another record quarter as it posted 20% net sales growth.
The consolidated net sales gain totaled €546.8 million ($602 million USD), the best result ever reported for the first quarter, with an improvement of 20% from €455.8 million ($498.9 million USD) and growth in all the regions where the Piaggio Group operates: EMEA and Americas (+19.5%), Asia Pacific (+12.4%) and India (+34.1%).
The gross margin was €148.2 million ($162.2 million USD), an improvement of 27% ($127.8 million USD) in the year-earlier period, for a return on net sales of 27.1% (25.6% Q1 2022).
The company’s operating expense in the first quarter was €103.4 million ($113.1 million USD) compared to €89.1 million ($97.4 million USD) in the first quarter of 2022. The increase in operating expenses was linked to the higher turnover and shipments.
Piaggio Group Chairman and CEO Roberto Colaninno commented: “The Piaggio Group has closed another record-breaking quarter with the best results to date, the sixth consecutive quarter to report growth. Net sales rose by 20% to more than 500 million euros, EBITDA was €81 million, with an EBITDA margin of 14.8%, and net profit almost doubled from the year-earlier period to reach €24.1 million. These results make us very satisfied with the effort we have put into our work and mean we can look ahead with confidence and optimism as we continue along the important growth path we have already mapped out, confirming the investments we have planned and our commitment to ESG issues. The key objective for 2023 is to conserve margins and make improvements wherever possible.”
The Piaggio Group’s net profit for the first quarter of 2023 was its best ever for the period, at €24.1 million, almost double (+90.2%) the figure of €12.7 million posted in the first quarter of 2022.
During the first quarter, the Piaggio Group sold 154,900 vehicles worldwide(141.800 in the first quarter of 2022), an increase of 9.2%, for consolidated net sales of €546.8 million (€455.8 million in the year-earlier period). All the regions in which the Group operates made a positive contribution to growth.
Two-wheelers:
In Q1 2023, the Group sold 124,700 two-wheelers worldwide, an increase of 4.8% from 119,000 in the year-earlier period, generating net sales of €438 million, an increase of 17.1% from €374 million in Q1 2022.
The figure includes spares and accessories, on which turnover totaled €38.7 million, (+31.4% from €29.4 million in Q1 2022).
Turnover on first-quarter two-wheeler sales was particularly strong in the EMEA and Americas regions (+21.9%), with very healthy performance on the Italian market (+40.3%) and the American market (+58.2%), followed by Asia Pacific (+12.4%).
In Europe, the Piaggio Group reported a 21.7% share of the scooter segment (21% Q1 2022) and further strengthened its positioning in the North American scooter market, with a share of 26.4% (24.6% Q1 2022). In North America, the Group is also working to consolidate its presence in the motorcycle market with the Aprilia and Moto Guzzi brands.
The motorcycle sector closed the first quarter of 2023 with a 12.7% turnover improvement and record results. Moto Guzzi reported its best-ever first quarter, with sales volumes up by more than 30% and turnover improving 55%, with an important contribution from the new Moto Guzzi V100 Mandello. The Aprilia brand outperformed in the first three months thanks to sales of the RSV4 super sports model, the Aprilia RS 660, the Tuono 660 and 1100, and the Tuareg 600.
Outlook
Piaggio says that while it’s still difficult to forecast the rest of the year with all of the geopolitical headwinds, however, thanks to its portfolio mix, the company plans to continue its growth program, confirming investments in new products and new facilities and strengthening its commitment to ESG issues.
