Piaggio Group Chairman and CEO Roberto Colaninno: “The Piaggio Group closed the first half of 2022 with very positive results at global level. Consolidated net sales, EBITDA and net profit were among our best-ever results for the first half. Through careful cost management, we continue to monitor the effects of the Covid pandemic, the serious crisis between Russia and Ukraine (which has no impact on our financial statements) and the current difficulties in procuring electronic components. Thanks to its unique brand portfolio, Piaggio will nonetheless continue along its growth path in the second half of 2022, confirming the investments planned in new products and new facilities, and also strengthening its commitment to ESG issues.”
- Consolidated net sales 1,053.1 million euro, an increase of 16.8 % (+12.9% at constant exchange rates) (901.7 €/mln at 30.06.2021), the best-ever first-half result
- Industrial gross margin 277.1 million euro, up 5.8% (261.9 €/mln at 30.06.2021), 26.3 % return on net sales
- EBITDA 152.2 million euro, the strongest result achieved in the first half, with an increase of 5.3% (144.6 €/mln at 30.06.2021). EBITDA margin 14.5%
- EBIT 85.8 million euro, up 6.7% (80.4 €/mln at 30.06.2021). EBIT margin 8.1%
- Profit before tax 72.9 million euro, up 3.9% (70.2 €/mln at 30.06.2021)
- Net profit 45.2 million euro, the best first-half result since 2008, with an improvement of 3.9% from 43.5 €/mln at 30.06.2021
- Net financial position 397.4 €/mln, an improvement of 4.5 €/mln from 401.9 €/mln at 30.06.2021.
- 320,600 vehicles shipped worldwide, up by 11.7% (287,100 at 30.06.2021)
- Capital expenditure approximately 66.6 million euro
- 2022 interim dividend of 8.5 eurocents per ordinary share (2021 interim dividend 8.5 eurocents)
Pontedera, 28 July 2022 – At a meeting today chaired by Roberto Colaninno, the Board of Directors of Piaggio & C. S.p.A. (PIA.MI) examined and approved the half-year report on operations as at and for the six months to 30 June 2022.
Piaggio Group business and financial performance at 30 June 20221
Group consolidated net sales totalled 1,053.1 million euro, the best first-half result ever reported, with an increase of 16.8% (+12.9% at constant exchange rates) against 901.7 million euro in the first half of 2021.
The industrial gross margin was 277.1 million euro, an increase of 5.8% compared to 261.9 million euro at 30 June 2021. The return on net sales was 26.3 % (29.1% at 30 June 2021).
Group operating expense was 191.3 million euro, an increase of 9.7 million euro. The rise in operating expense was closely linked to the growth in net sales and shipments.
The income-statement figures described above produced consolidated EBITDA of 152.2 million euro, the best first-half result to date, with an increase of 5.3% (+6.6% at constant exchange rates) from 144.6 million euro in the first half to 30 June 2021. The EBITDA margin was 14.5% (16% at 30 June 2021).
EBIT amounted to 85.8 million euro, a rise of 6.7% from 80.4 million euro at 30 June 2021. The EBIT margin was 8.1% (8.9% at 30 June 2021).
Pre-tax profit for the first six months was 72.9 million euro, up 3.9% from 70.2 million euro at 30 June 2021. Income tax for the period was 27.7 million euro, with an impact on pre-tax profit of 38%.
The Piaggio Group posted a net profit of 45.2 million euro, its best first-half result since 2008, up 3.9% from 43.5 million euro in the first half of 2021.
Net financial debt at 30 June 2022 stood at 397.4 million euro, an improvement of 4.5 million euro from 401.9 million euro at 30 June 2021. The net financial position at 31 December 2021 was 380.3 million euro, giving cash absorption of 17.1 million euro in the first half of 2022. The two-wheeler business is subject to seasonal trends, absorbing resources in the first half of the year and generating resources in the second half.
Group shareholders’ equity at 30 June 2022 was 424.3 million euro (404.1 million euro at 31 December 2021).
In the first half, Piaggio Group capital expenditure amounted to 66.6 million euro (69.1 million euro in the year-earlier period).
Operations in the first half to 30 June 2022
In the first half to 30 June 2022, the Piaggio Group sold 320,600 vehicles worldwide (+11.7 % from 287,100 in the year-earlier period), and reported consolidated net sales of 1,053.1 million euro. The growth in volumes arose in all geographical regions.
As of 30 June 2022, the Group had sold 271,600 two-wheelers worldwide (+11.8% from 242,800 in the first half of 2021), generating net sales of 875.8 million euro, an increase of 15.1% from 761 million euro in the year-earlier period.
The figure includes spares and accessories, on which turnover totalled 73.9 million euro (+6.3% from 69.5 million euro at 30 June 2021).
Two-wheeler sales in the first half of 2022 were particularly strong in Asia Pacific (+27%), followed by the Americas (+26.3%) and EMEA (+7%). On the Indian market, sales volumes fell by 7.4% while net sales were up 11.2%.
In Europe, the Piaggio Group confirmed its leadership in the scooter segment with a share of 22.5% and maintained a strong positioning on the North American scooter market, with a share of 31%. In North America the Group is also working to consolidate its presence on the motorcycle market with the Aprilia and Moto Guzzi brands.
The scooter sector saw double-digit growth in global sales volumes, driven in particular by the Vespa brand, which reported strong performance in Asia Pacific (mainly in Indonesia, Vietnam and China), India, the Americas and Italy, and by Aprilia scooters.
In motorcycles, where overall sales volumes rose by around 30%, Moto Guzzi reported a very strong first half, with volumes and net sales showing double-digit growth, thanks especially to sales of the Moto Guzzi V7 and V85TT. The first six months were also extremely positive for Aprilia motorcycles, chiefly as a result of sales of the new Aprilia Tuareg and Aprilia RS 660 cc, which benefited from Aprilia Racing's excellent performance in the MotoGP championship.
In commercial vehicles, the Piaggio Group reported sales volumes of 49,000 vehicles (+10.8% compared to the figure of 44,200 in the first half of 2021), with net sales of 177.3 million euro (+26% from 140.7 million euro at 30 June 2021). The figure includes spares and accessories, where turnover totalled 27.5 million euro (+27% from 21.7 million euro in the year-earlier period).
At geographical level, the EMEA and Americas markets reported turnover growth of 10%; on the Italian market in particular, sales of the new Porter NP6 were a key factor.
The Indian market regained strength to report a rise of almost 40% in turnover for commercial vehicles, with sales volumes increasing by more than 20%.
The PVPL subsidiary had an overall share of 19.9% of the Indian three-wheeler market and maintained a strong position in the Cargo segment with a share of 32.7%.
Piaggio Fast Forward:
Piaggio Fast Forward (PFF), the Piaggio Group robotics and future mobility company based in Boston, expanded its offer with the presentation in September of gitamini®, a new robot that condenses the technology and functions of gita®, its revolutionary “big brother”, in a lighter, more compact design.
Gita® and gitamini® are made in the Piaggio Fast Forward plant in Boston’s Charlestown district. The first marketing phase for the robots focuses on the US market, where the circulation of robots on city streets is already regulated.
PFF kicked off a series of pilot programs, together with partners active in various business sectors, to test further applications for gita in the travel, residential and retail sectors and in last-mile delivery. In March, PFF announced an agreement with Trimble, a Nasdaq-listed company, to develop robots and machines to follow humans and other devices in industrial applications.
PFF has also designed and developed an innovative sensor technology, which made its debut on the new Piaggio MP3 three-wheel scooter, to deliver unparalleled safety. Thanks to the integration of advanced rider assistance systems (ARAS), the new sensors play a vital role in accident prevention and rider protection.
Significant events in and after the first half of 2022
Supplementing the information published above or at the time of approval of the interim report at 31 March 2022 (directors’ meeting of 2 May 2022), this section illustrates key events in and after the first six months of 2022.
On 7 May, the Aprilia All Stars 2022 event was held at the Misano racetrack, attended by more than 10,000 Aprilia fans and followers.
On 15 June, Michele Colaninno, Chief Executive of global strategy, product, marketing and innovation of the Piaggio Group, founder and Chair of Piaggio Fast Forward, was appointed 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.
On 20 June, Piaggio & C. signed an agreement with a pool of banks to extend and increase a 187.5 million euro revolving line of credit arranged in 2018. The facility was raised to 200 million euro and underwritten by Bank of America Merrill Lynch, Banca Nazionale del Lavoro, HSBC, Intesa Sanpaolo, ING Bank and Unicredit.
On 28 June, the new Piaggio MP3 models were presented to the international press in Paris. The three-wheeler, an icon of metropolitan mobility, is now available as a new range of lighter, high-performance models that have been completely redesigned from every technical point of view. Fitted with the new radar systems developed by Piaggio Fast Forward to deliver a safer riding experience, the new scooters feature modern 400 and 530 hpe engines.
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Russia – Ukraine crisis
The Piaggio Group is paying close attention to developments in the Russia – Ukraine crisis, which has begun to trigger rises in the costs of raw materials and energy and could have significant repercussions for the world economy, in part as a result of the sanctions that have already been introduced or are under discussion. The extreme geographical diversification of the Group’s sales and procurements means that its exposure in the area of the conflict is substantially non-existent. As regards the indirect effects of the war, the Group has been affected by the price rises in energy, especially in its European factories, and in raw materials, which have been mitigated in part by agreements with its suppliers.
Like the early months of the year, the second quarter of 2022 presented a complex macroeconomic picture, with a series of difficulties caused by rising commodities prices, transport logistics, the Russia - Ukraine war and consequent international geopolitical tensions, and developments in the Covid pandemic.
Nevertheless, thanks to its unique brand portfolio, in the second half of 2022 Piaggio will continue along its growth path, confirming its planned investments in new products and new facilities and strengthening its commitment to ESG issues.
In this general situation, Piaggio will continue as ever to work to meet its commitments and objectives, keeping a constant focus on efficient management of its economic and financial structure so that it can respond immediately and in a flexible manner to the challenges and uncertainties of 2022.
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Piaggio & C. S.p.A.
Having approved the financial statements at 30 June 2022 and the directors’ report pursuant to art. 2344-bis of the Italian Civil Code, the Board of Directors authorised distribution of a gross interim dividend for 2022 of 8.5 eurocents to each entitled ordinary share (compared to a similar interim dividend on ordinary shares in 2021), for a total amount of Euro 30,224,274.16.
The ex-dividend date (coupon 19) is 19 September 2022; the record date is 20 September 2022 and the payment date is 21 September 2022.
The financial statements, the directors’ report and the independent auditor’s opinion, required under art. 2433-bis of the Italian Civil Code, will be made available to shareholders at the Company’s headquarters (Viale Rinaldo Piaggio 25, Pontedera - PI).
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Conference call with analysts
The presentation of the financial results as at and for the six months to 30 June 2022, which will be illustrated during a conference call with financial analysts, is available on the corporate website at www.piaggiogroup.com/it/investor.
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, intangible assets, and rights of use, 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 net financial position does not include other financial assets and liabilities arising from measurement at fair value, derivatives designated or not as hedges, fair value adjustments of the related hedged items and related accruals.