Piaggio: First Half 2015

Jul 30 2015 13:00
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Consolidated net sales 693.9 million euro (629 €/mln in H1 2014)

Ebitda 95.1 million euro (94 €/mln in H1 2014)

Ebitda margin 13.7% (15% in H1 2014)

Industrial gross margin 204.4 million euro (194.4 €/mln in H1 2014)

Return on net sales 29.5% (30.9% in H1 2014)

Ebit 42.9 million euro (51.1 €/mln in H1 2014)

Ebit margin 6.2% (8.1% in H1 2014)

Net profit 14.8 million euro (16.5 €/mln in H1 2014)

Net financial position -535.3 million euro (-568.4 €/mln at 31 March 2015, -492.8 €/mln at 31 December 2014)


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The Piaggio Group reconfirms its leadership on the European two-wheeler market with a 14.6% overall share and a 24.8% share of the scooter sector

Revenue growth on all lines of business (two-wheelers, commercial vehicles, spares and accessories) and in the main geographical areas (EMEA, India, Asia Pacific)

In the scooter sector, revenue growth for the Vespa brand (+9.3%) and for the Piaggio Mp3 three-wheeler range (+24%)

In motorcycles, revenues rise 24.7% for Moto Guzzi and 16.4% for Aprilia




Milan, 30 July 2015 – At a meeting today chaired by Roberto Colaninno, the Board of Directors of Piaggio & C. S.p.A. examined and approved the half-year report at 30 June 2015.

Piaggio Group business and financial performance in the first half to 30 June 2015(1)

Group consolidated net sales in the first half of 2015 totalled 693.9 million euro, an improvement of 10.3% from 629 million euro at 30 June 2014 assisted by the positive exchange-rate effect.

The industrial gross margin for the first half was 204.4 million euro, an increase of 10 million euro from the first half of 2014 (194.4 million euro), with a return on net sales of 29.5% (a slight decrease compared with 30.9% at 30 June 2014 due in part to the exchange-rate effect).

Operating expense in the first half of 2015 amounted to 161.5 million euro (143.3 million euro at 30 June 2014). It comprised amortisation and depreciation not included in the industrial gross margin, for 32.3 million euro (25.6 million euro at 30 June 2014). 

The progress in the income statement described above generated consolidated EBITDA of 95.1 million euro, up from 94 million euro in the first half of 2014. The EBITDA margin was 13.7% (15% in the first half of 2014).

EBIT in the first half of 2015 was 42.9 million euro, down by 8.2 million euro from 51.1 million euro in the first half of 2014 as a result of higher amortisation and depreciation for 9.2 million euro. The EBIT margin was 6.2% (8.1% at 30 June 2014).

The Piaggio Group closed the first half of 2015 with profit before tax of 24.6 million euro, compared with 27.5 million euro at 30 June 2014. Income tax for the period was 9.9 million euro (11 million euro in the first half of 2014), with an impact on pre-tax profit of 40%.

The first half of 2015 closed with a net profit of 14.8 million euro, compared with 16.5 million euro at 30 June 2014.


Net debt at 30 June 2015 was 535.3 million euro, an improvement on 568.4 million euro at
31 March 2015. The increase of 42.5 million euro from the end of 2014 (492.8 million euro at
31 December 2014) was due in part to higher capital expenditure (+5.3 million euro from the first half of 2014) in connection with the important new product launch program.

Operating cash flow in the first half increased to 63.9 million euro, up by 6.8 million euro from 57.1 million euro in the first half of 2014. 

Shareholders' equity at 30 June 2015 was 409.8 million euro (413.1 million euro at 31 December 2014).

Piaggio Group capital expenditure in the first half of 2015 amounted to 43.5 million euro (38.2 million euro at 30 June 2014), of which 27 million euro for R&D expenditure (23.8 million euro at 30 June 2014) and approximately 16.5 million euro in property, plant and equipment, investment property and intangible assets (14.4 million euro at 30 June 2014).

The total workforce of the Piaggio Group at 30 June 2015 numbered 7,675 employees, from 7,734 at 30 June 2014. The Group’s Italian employees numbered 3,718, substantially unchanged from the previous year.

Business performance in the six months to 30 June 2015

In the first half of 2015, the Piaggio Group sold 269,600 vehicles worldwide (278,500 in the year-earlier period).

Performance in sales was achieved despite the persistent weakness of the European scooter market (-1% overall from the first half of 2014), the volatility of demand in the two-wheeler sector on the emerging markets and the sharp slowdown on the Indian three-wheel commercial vehicle market. The fall in Group sales volumes was effectively counterbalanced both by the shift in the product mix to vehicles with higher value per unit and by the Piaggio Group’s premium price policy.

In the two-wheeler sector, the Group shipped 175,700 vehicles (181,100 in the first half of 2014), for net sales of 496.3 million euro, up by 8.1% from 459 million euro in the year-earlier period. The figure includes spares and accessories, which generated sales of 65.1 million euro in the two-wheeler sector, an improvement of 11.3% from the first half of 2014.

The Piaggio Group reported revenue growth in all the main regions where it operates in the two-wheeler sector, with turnover of 394.4 million euro in the EMEA and Americas areas (+5.2% on the first half of 2014), 90.5 million euro in Asia Pacific (+19.4%) and 11.3 million euro in India (+35.9%). 

On the European market, the Piaggio Group confirmed its leadership in two-wheelers with an overall market share of 14.6%, rising to 24.8% in the scooter sector (with a lead of approximately 12 percentage points over the second competitor).

In scooters, the Group reported higher revenues for the Vespa brand (+9.3%) and the Piaggio Mp3 three-wheel scooter range (+24%). Revenue growth was also recorded for motorcycles, with an improvement of 24.7% for Moto Guzzi and 16.4% for the Aprilia brand, thanks to the success of the key new products launched by Piaggio during 2015: the Audace and the Eldorado 1400 for Moto Guzzi, and the RSV4 RR and RF, the Tuono 1100 Factory and RR and the Caponord 1200 Rally for Aprilia.

In Commercial Vehicles, the Group shipped 94,000 vehicles (97,400 in the first half of 2014) for revenues of 197.6 million euro, up by 16.3% from 169.9 million euro in the year-earlier period. The figure includes spare parts and accessories, which generated sales of 19.5 million euro (+15.5% from 16.9 million euro at 30 June 2014).

In commercial vehicles, in the EMEA and Americas areas, the Piaggio Group reported net sales of 39.1 million euro, for revenue growth of 19.6%. In India, net sales at the subsidiary Piaggio Vehicles Private Limited (PVPL) totalled 158.5 million euro (+15.5% on 137.2 million euro in the first half of 2014). The PVPL production hub exported 10,407 three-wheel vehicles. In India, the world reference market for three-wheel commercial vehicles, Piaggio strengthened its market leadership in the cargo segment with a market share of 55.4% (52.6% in the first half of 2014); it also had a significant share of the Passenger segment (26.3%) and an overall share of the Indian three-wheel market of 32.4%.

Significant events in the first half of 2015

In addition to the information provided at the time of approval of the 2015 first-quarter results (Board of Directors meeting of 8 May 2015):

On 13 April, the Piaggio & C. S.p.A. AGM elected the members of the Board of Directors: Roberto Colaninno, Matteo Colaninno, Michele Colaninno, Giuseppe Tesauro, Graziano Gianmichele Visentin, Maria Chiara Carrozza, Federica Savasi, Vito Varvaro and Andrea Formica. The AGM also appointed the Board of Statutory Auditors, approved distribution of a dividend of 0.072 euro per ordinary share and the cancellation of 2,466,500 own shares in portfolio.

On the same date, at a meeting after the AGM, the Piaggio & C. S.p.A. Board of Directors made the following appointments: Chairman and CEO Roberto Colaninno, Deputy Chairman Matteo Colaninno.

On 15 April 2015, the new Aprilia RSV4 RF and RR and the Aprilia Tuono 1100 Factory and RR motorcycles were launched.

On 21 April 2015, the Piaggio Vietnam factory in Vinh Phuc completed its 500,000th scooter since operations began. The scooter – a Vespa Sprint 125 – marked a new milestone in Piaggio Group operations on the markets in South East Asian.

On 23 April 2015, the new composition of Piaggio & C. S.p.A. share capital (fully subscribed and paid in) was registered with the Companies Register, after the cancellation of 2,466,500 own shares without change to share capital, as approved by the extraordinary shareholders' meeting on 13 April 2015. The share capital now stands at 207,613,944.37 euro, represented by 361,208,380 ordinary shares 

Also on 23 April 2015, the Indian subsidiary Piaggio Vehicles Private Ltd. obtained ISO 14001:2004 certification (environmental management systems) and OHSAS 18001:2007 certification (worker health and safety management systems) for the Commercial Vehicles and Engines factories. 

On 21 May 2015, the Group presented the new Moto Guzzi Audace and Eldorado motorcycles.

On 9 June 2015, the Vespa 946 Emporio Armani made its international market debut; this is a limited-edition Vespa 946 developed through cooperation between Giorgio Armani and the Piaggio Group to celebrate two of the most world-famous symbols of Italian style and creativity. The Vespa 946 Emporio Armani marks the 40th anniversary of the foundation of Giorgio Armani and the 130th year of operation of the Piaggio Group.

On 15 June 2015, the Piaggio Fast Forward Inc. company was established as a subsidiary of Piaggio & C. S.p.A.. The company’s operating offices are in the US state of Massachusetts, where it conducts research into innovative mobility and transport solutions.

Significant events after 30 June 2015

On 8 July 2015, Aprilia Racing and Marco Melandri reached a mutual agreement to terminate the rider’s contract with Aprilia Racing. 

On 16 July 2015, the world’s first free-floating scooter-sharing scheme was launched in Milan. The service is offered by the Enjoy company and uses Piaggio Mp3 scooters. For the occasion, the Piaggio Group developed a special version of the Mp3 300LT Business ABS three-wheel scooter combining a full range of new features for localisation via smartphone and use of the vehicle in sharing mode. Under the initiative, an initial fleet of 150 scooters is to be delivered for the Enjoy scheme in Milan.


In a general economic context likely to see a strengthening of the global economic upturn, where uncertainty will nonetheless remain with regard to the speed of European growth and the risk of a slowdown in some emerging countries, Piaggio Group commercial and industrial operations will focus on:

  • confirming the Group leadership position on the European two-wheeler market, taking full advantage of the expected recovery through:
    • a further strengthening of the product range to grow motorcycle sales and margins with the renewed Moto Guzzi and Aprilia lines;
    • entry on to the e-bike market, leveraging the Group’s leadership in technology and design;
    • maintenance of current positions on the European commercial vehicle market;
    • a stronger positioning in the Asia Pacific region, by leveraging the premium strategy that has fuelled growth in the region to date, in part through the expansion of the product range. In 2015 the Group will also consolidate direct sales operations in China, in part through the opening of new sales outlets, with the aim of penetrating the premium segment of the two-wheeler market;
  • strengthening sales on the Indian scooter market by extending the offer of Vespa products and introducing new models in the premium scooter and motorcycle segments;
  • consolidating commercial vehicle sales in India and the emerging countries, aiming for further growth in exports to Africa and South America.

From a technology viewpoint, the Piaggio Group will continue development of technologies and platforms that focus on the functional and emotional aspects of its vehicles, through continuous development in power trains, wider use of digital platforms connecting user and vehicle, and trials of new product and service configurations.

At a more general level, the Group maintains its constant commitment – a characteristic of recent years and continuing in 2015 – to generate higher productivity through close attention to cost and investment efficiency, in compliance with the ethical principles adopted by the Group.

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Conference call with analysts


The presentation of the financial results as at and for the six months ended 30 June 2015, which will be illustrated during a conference call with financial analysts, is available on the corporate website at www.piaggiogroup.com/it/investor and on the “eMarket Storage” authorised storage mechanism on the website www.emarketstorage.com.


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The Piaggio Group consolidated income statement, consolidated statement of financial position and consolidated statement of cash flows as at and for the six months ended 30 June 2015 are set out below. The limited audit of the condensed consolidated half-year financial statements as at and for the six months ended 30 June 2015 has not yet been completed.

The manager in charge of preparing the company accounts and documents, Alessandra Simonotto, certifies, pursuant to paragraph 2 of art. 154 bis of Legislative Decree no. 58/1998 (Consolidated Law on Financial Intermediation), that the accounting disclosures in this statement correspond to the accounting documents, ledgers and entries.

(1) The main alternative performance indicators used by the Piaggio Group, representing the data monitored by management are as follows:

  • EBITDA: earnings (EBIT) before amortisation and depreciation and impairment losses on property, plant and equipment and intangible assets, as reflected in the consolidated income statement;
  • Industrial gross margin: net sales less costs to sell;
  • Net financial position: gross financial debt less cash and cash equivalents, and other current financial receivables. Determination of the financial position does not include other financial assets and liabilities arising from measurement at fair value of derivatives designated or not as hedges, fair value adjustments of the related hedged items and related accruals.
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