- Net sales € 820.8 million (+3.2% on 1H 2009)
- EBIT € 74.6 million (+21.1% on 1H 2009)
- Profit before tax € 62.8 million (+39.1% on 1H 2009)
- Net profit € 33.1 million (+28.6% on 1H 2009)
- EBITDA € 117.5 million (+9.3% on 1H 2009)
- EBITDA margin up to 14.3% (13.5% in 1H 2009)
- Net debt € 341.7 million (down from € 352 million at 31.12.2009 and € 348.9 million at 30.06.2009)
- Increase in shipments in 2-wheel business (+2.6%) and commercial vehicles business (+23.9%)
Milan, 29 July 2010 – At a meeting today in Milan chaired by Roberto Colaninno, the Board of Directors of Piaggio & C. S.p.A. examined and approved the half-year report at 30 June 2010.
The Piaggio Group’s half-year results show a significant improvement in all economic and financial indicators and confirm the importance of the strategic moves made by the Group to strengthen its industrial operations in the world’s fastest-growing regions.
In the first six months of 2010 the Piaggio Group sold a total of 340,800 vehicles worldwide, for an 8.5% improvement in volumes compared with 314,200 vehicles shipped in the first half of 2009.
The increase arose in both the 2-wheel business, with 232,800 vehicles sold worldwide (+2.6% on the year-earlier period), and the commercial vehicles business, where vehicles sold totalled 108,000 (+23.9% on the first half of 2009).
In the 2-wheel business, Piaggio Group sales on the European market showed a small decrease of 3.1% with shipments of 200,200 vehicles in the first half, thanks to the increase in market shares in a number of product segments in Italy and in Europe. This compared with a decline of 11% on the European scooter and motorcycle market compared with the first six months of 2009.
In the Asia Pacific region, thanks to the fact that the Vietnamese plant was fully operational, the Piaggio Group was able to take full advantage of the sharp rise in demand (+20% in South East Asia in the first half of 2010). Compared with the year-earlier first half, Group growth in the Asia Pacific region in the first six months of 2010 was 301.9% in terms of volumes, with 29,500 vehicles shipped, and 263.6% in terms of revenues, which totalled € 66.9 million.
In the commercial vehicles business, the Piaggio Group closed the first half of 2010 with a total of 108,000 shipments (+23.9% on the year-earlier period) and revenues amounting to € 238.8 million (+19.5%), a result that reflected the strong growth of the Indian market, which, for Group sales, easily counterbalanced the significant slowdown recorded in demand for light commercial vehicles in Italy and Europe.
Group consolidated net sales amounted to € 820.8 million in the first half of 2010, up by 3.2% from € 795.6 million in the first half of 2009.
The first-half industrial gross margin was € 265 million, up 6.3% from € 249.4 million in the first half of 2009. The return on net sales also continued to grow, rising to 32.3% (31.3% in the year-earlier period), thanks to constant control of production costs.
The Group reported a sharp improvement in consolidated EBITDA to € 117.5 million in the first six months of 2010, an increase of 9.3% on € 107.5 million in the year-earlier period. The EBITDA margin also made healthy progress, rising to 14.3% in the first half of 2010 from 13.5% in the first half of 2009.
EBIT was € 74.6 million, an increase of 21.1% from € 61.6 million in the first half of 200.
In the first half of 2010 the Piaggio Group posted profit before tax of € 62.8 million, an improvement of 39.1% from € 45.1 million in the year-earlier period.
The first half of 2010 closed with a net profit of € 33.1 million, an increase of 28.6% on the first half of 2009 (€ 25.7 million), after tax of € 29.7 million (€ 19.4 million a year earlier).
Net debt was € 341.7 million at 30 June 2010, down from € 352 million at 31 December 2009 and € 348.9 million at 30 June 2009. The improvement was due to the positive trend in operating cash flow, which enabled the Group to finance its investment programme, dividend payout for € 25.8 million and share buybacks for € 2.9 million.
Shareholders' equity at 30 June 2010 totalled € 439.0 million, against € 423.8 million at 31 December 2009.
Significant events after 30 June 2010
On 23 July 2010 a loan was arranged with IFC (World Bank Group) to expand Piaggio Group production operations in Asia, in two-wheel vehicles, commercial vehicles and fuel-efficient low-emission engines. The credit facility granted by IFC for up to € 45 million will be intended specifically for the Piaggio Vietnam Company Limited (up to € 15 million) and Piaggio Vehicles Private Limited in India (up to € 30 million, underwritten initially for an amount of approximately € 15 million).
Outlook
During the second half of 2010, the Piaggio Group will continue its industrial and commercial growth strategy on key Asian markets – supported by the new Group worldwide organization structure – in order to strengthen its leadership on the Indian three and four-wheel light commercial vehicle market and win additional market share in the scooter sector in Vietnam.
At corporate level, Piaggio R&D will focus on the renewal of the Group product ranges – scooters, motorcycles and commercial vehicles – with particular attention to development of energy-efficient engines with little or zero environmental impact.
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The manager in charge of preparing the company accounts and documents, Alessandra Simonotto, certifies, pursuant to paragraph 2, 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.