Q2 2024 Pirelli & C SpA Earnings Call Transcript
Key Points
- Pirelli & C SpA (PLLIF) reported a 4.6% organic growth in the first half of 2024, driven by a solid commercial performance.
- The company achieved an adjusted EBIT of EUR 539 million, marking a 4% increase from the previous year, with a profitability improvement of 0.5 percentage points.
- Pirelli's high-value segment showed resilience, growing by 7% and outperforming the standard segment.
- The company made significant strides in sustainability, reducing CO2 emissions by 18% and water withdrawal by 15% compared to the first half of 2023.
- Pirelli's liquidity margin is strong, covering financial debt maturities until Q1 2027, with a pro forma basis extending to Q1 2028.
- Pirelli faces geopolitical uncertainties and potential international trade tensions, which could impact future performance.
- The company reported a negative net financial position of approximately EUR 2.98 billion, despite reducing it compared to June 2023.
- Exchange rates negatively impacted sales by 4.3% in the first half of 2024, with continued volatility expected.
- The standard segment is declining, with Pirelli's volumes for cars 17 inches and below decreasing by 8%, compared to a 1% market decline.
- Raw material costs are expected to have a slight negative impact for the full year, with potential increases in natural rubber and oil derivatives prices.
Ladies and gentlemen, welcome to Pirelli's conference call in which Pirelli top management will present company's first-half 2024 financial results. A live webcast of the event and the presentation slides are available in the Investor Relations section of the Pirelli website. (Operator Instructions)
Now I would like to introduce Mr. Marco Tronchetti Provera. Please go ahead, sir.
Good evening to all. The results for the first half of 2024 confirm the effectiveness of our strategy.
We strengthen our positioning on high value, now 77% of revenues, fully sizing growth opportunities across both channels and markets and leveraging innovation and brand strength. We have increased profitability, among the best in the industry, thanks to the effectiveness of internal levers, price mix, and efficiencies.
Finally, we have improved the cash trend compared to the first half of 2023. The careful management of working capital is a result of structural
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
