Piaggio Group Chairman and CEO Roberto Colaninno: “The Piaggio Group’s results for the first nine months of 2021 are obviously satisfying, given the problems ensuing from the pandemic. The strong improvement in EBITDA to approximately 193 million euro and cash inflows enabled us to reduce debt by more than 70 million euro.
Raising productivity continues to be our objective, in order to mitigate the obvious complications in global supplies.”
- Consolidated net sales 1,319.2 million euro, the best nine-month result since 2007, with growth of 32.7% (+34.9 % at constant exchange rates) (993.8 €/mln at 30.09.2020), and 9.9% from 30.09.2019
- Industrial gross margin 365.6 million euro, up 27.8% (+28.5% at constant exchange rates) (286 €/mln in the first nine months of 2020) 27.7% return on net sales (28.8% at 30.09.2020)
- EBITDA 192.9 million euro, +28.5% (150.1 €/mln at 30.09.2020).
EBITDA margin 14.6% (15.1% at 30.09.2020)
- EBIT 97.4 million euro, up 53.1% (63.6 €/mln at 30.09.2020).
EBIT margin 7.4% (6.4% at 30.09.2020)
- Profit before tax 83.2 million euro, up 71.3% (48.5 €/mln at 30.09.2020)
- Net profit 51.6 million euro, up 77.1% (29.1 €/mln at 30.09.2020)
- Net financial position -372.7 €/mln, an improvement of 72.1 €/mln from -444.8 €/mln at 30.09.2020 and 50.9 €/mln from -423.6 €/mln at 31.12.2020
- 430,600 vehicles shipped worldwide, up by 21.7% (353,900 at 30.09.2020)
- Capital expenditure 102.2 million euro, up 16.2% (88 €/mln at 30.09.2020)
Pontedera, 29 October 2021 – At a meeting today chaired by Roberto Colaninno, the Board of Directors of Piaggio & C. S.p.A. (PIA.MI) examined and approved the interim report on operations for the nine months to 30 September 2021.
Piaggio Group business and financial performance at 30 September 20211
Group consolidated net sales totalled 1,319.2 million euro, the best nine-month result since 2007, with a strong increase of 32.7% (+34.9% at constant exchange rates) against 993.8 million euro in the year-earlier period.
The industrial gross margin was 365.6 million euro, up 27.8% (+28.5% at constant exchange rates) compared to 286 million euro at 30 September 2020. The return on net sales was 27.7% (28.8% at 30 September 2020).
Group operating expense in the first nine months to 30 September 2021 was 268.1 million euro, an increase of 45.8 million euro from the year-earlier period, when operations at the production plants were suspended due to the lockdowns around the world. The increase was also driven by the rise in turnover and vehicle sales.
The income-statement figures described above produced EBITDA of 192.9 million euro, the best result for the first nine months since 2007, with a strong increase of 28.5% from 150.1 million euro in the year-earlier period. The EBITDA margin was 14.6% (15.1% at 30 September 2020).
EBIT amounted to 97.4 million euro, an improvement of 53.1% from 63.6 million euro at 30 September 2020. The EBIT margin was 7.4% (6.4% at 30 September 2020).
Pre-tax profit in the first nine months was 83.2 million euro, up 71.3% from 48.5 million euro at 30 September 2020. Income tax for the period was 31.6 million euro, with an impact on pre-tax profit of about 38%.
The Piaggio Group closed the first nine months of 2021 with net profit of 51.6 million euro, an increase of 77.1% compared with 29.1 million euro in the year-earlier period.
Net financial debt at 30 September 2021 stood at 372.7 million euro, an improvement of 72.1 million euro from 444.8 million euro at 30 September 2020 and an improvement of 50.9 million euro from 423.6 million euro at 31 December 2020. Compared with the financial position at 30 September 2020, which was severely affected by the block on sales as a result of the Covid-19 pandemic, the reduction in debt was achieved through careful management of working capital and the operating cash flows generated by the Group’s positive business performance, which also enabled absorption of a higher capital expenditure requirement.
Group shareholders' equity at 30 September 2021 was 393.1 million euro (372 million euro at 31 December 2020).
During the first nine months, Piaggio Group capital expenditure amounted to 102.2 million euro, an increase of 16.2% from expenditure of 88 million euro in the year-earlier period.
Operations in the nine months to 30 September 2021
In the first nine months to 30 September 2021, the Piaggio Group sold 430,600 vehicles worldwide (+21.7% from 353,900 in the year-earlier period), and reported consolidated net sales of 1,319.2 million euro. The growth in volumes arose in all geographical regions.
In the nine months to 30 September 2021, the Piaggio Group sold 366,000 two-wheelers worldwide (+28.9% from 284,100 at 30 September 2020), generating net sales of 1,110.2 million euro, an increase of +39.3% from 797.2 million euro in the year-earlier period.
The figure includes spares and accessories, on which turnover totalled 105.8 million euro, an increase of 18.1% from 89.6 million euro in the year-earlier period.
Two-wheeler sales in the first nine months of 2021 were particularly significant in all areas covered by the Group. Specifically, sales volumes almost doubled on the Indian market and rose by 39% in Asia Pacific. In the EMEA & Americas area, volumes increased by 15.3%, driven by the upturn on the American market (+62.6%) and the Italian market (+22.2%).
The Piaggio Group confirmed its leadership in the European scooter segment with a share of 23.1% and further strengthened its positioning on the North American scooter market, with a share of 36.1% (27.3% in the first nine months of 2020). In North America the Group is also working to consolidate its presence on the motorbike market with the Aprilia and Moto Guzzi brands.
The scooter segment reported double-digit growth in global sales, led by the Vespa brand (with record sales of more than 40% from 30 September 2020), the Piaggio Beverly and Piaggio Liberty high-wheel scooters, and the Aprilia scooters.
Performance was also very positive in motorcycles, where the Aprilia and Moto Guzzi brands both achieved record sales in the first nine months of the year, reporting their highest volumes and turnover ever. There was a strong market response to the new Aprilia RS and Aprilia Tuono bikes with 660 cc engines, and to the Moto Guzzi V7 and V85TT.
In commercial vehicles, the Piaggio Group reported nine-month sales volumes of 64,600 vehicles (-7.5% compared to 69,800 in the year-earlier period), with net sales of 209.1 million euro (+6.3% from 196.6 million euro at 30 September 2020). The figure includes spares and accessories, on which turnover totalled 34.2 million euro, an increase of 27.1% from 26.9 million euro in the year-earlier period.
At geographical level, performance was positive in the EMEA and Americas area (+31.3% volumes; +38.7% net sales), benefiting from the marketing launch of the new Porter NP6.
The slowdown in the commercial vehicles business was due to the slackening in India caused by the protracted Covid-19 health crisis, leading to a fall in sales volumes in the first nine months to 30 September 2021.
Nevertheless, the PVPL subsidiary (Piaggio Vehicles Private Ltd.) had an overall share of 21% of the Indian three-wheeler market and confirmed its leadership in the Cargo segment with a share of 36.1%.
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 local food 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.
Significant events in and after the first nine months of 2021
Supplementing the information published above or at the time of approval of the interim report at 30 June 2021 (directors’ meeting of 30 July 2021), this section illustrates key events in and after the first nine months of 2021.
On 5 August Piaggio Fast Forward (PFF) announced the development of its new sensor technology for domestic and industrial robots, as well as for scooters and motorcycles. The hardware and software modules combine a high level of safety with affordable pricing, to guarantee reliable monitoring independently of light and environmental conditions. PFF signed a contract with Vayyar Imaging for the supply of Radar-on-Chip systems, developing the first safety platform based on 4D Radar Imaging for scooters and motorcycles. The sensor package for scale production of Advanced Rider Assistance Systems (ARAS) is developed, built and supplied by Piaggio Fast Forward for Piaggio Group motorcycles.
On 6 September, further to the letter of intent of 1 March 2021, the Piaggio Group, Honda Motor Co. Ltd., KTM F&E GmbH and Yamaha Motor Co. Ltd. signed an official agreement for the creation of the Swappable Batteries Motorcycle Consortium (SBMC), to promote wide-scale use of lightweight electric vehicles such as mopeds, scooters, motorcycles, motorised tricycles and quad bikes, and promote more sustainable management of battery life in line with international climate policies.
On 10 September, the important project for the preservation and restructuring of the Moto Guzzi industrial site was presented in Mandello del Lario. The project was commissioned from world-famous US architect and designer Greg Lynn and involves the entire site. Unique of its kind and in its style, this is a futuristic project: a location with open spaces for use by the public. On the same day, the new Moto Guzzi V100 was displayed in a world preview. The bike will be officially unveiled at the EICMA 2021 international motorcycle show.
Towards the end of September, with rulings issued within a few days of each other, the Judicial Tribunal of Paris and the Court of Milan found Peugeot Motocycles (now owned by an Indian Group) guilty of infringing a European patent on the technology of the Piaggio MP3 three-wheel scooter with the Peugeot Metropolis model. The patent in question owned by the Piaggio Group to which the rulings in its favour refer (still subject to appeal) relates to the control system that enables a three-wheel vehicle to tilt sideways like a conventional motorcycle.
On 25 October, the Piaggio Group, bp and its Indian subsidiary Jio-bp announced a memorandum of understanding to identify opportunities for cooperation on the rapidly expanding two- and three-wheel electric vehicle market. The aim is to offer charging and interchangeable battery stations, as well as all-inclusive services such as "Battery as a Service” (BaaS), which comprises battery leasing, management and recycling, and "Vehicle as a Service" (VaaS), for vehicle leasing, repairs, maintenance and intelligent energy management. The partners intend to explore growth opportunities in Asia – China, Indonesia and Vietnam – and in Europe.
- 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.