Piaggio Group Managing Director – CEO Michele Colaninno: “Once again Piaggio has reported very positive margins, in line with our targets. Our product strategy is proving correct, and our brands continue to strengthen well around the world; Moto Guzzi and Aprilia, for example, in the second quarter alone shipped a record 11,888 motorcycles in Europe.
On the markets, there was a slowdown, mainly in Asia and America. For the rest of the year, we expect non-euphoric (but recovering) markets in some regions of south-east Asia. The Indian continent performed well, and is expected to continue reporting improvements with respect to 2023.
The continuing international political crises mean we have to take a prudent approach, since logistics and the current necessary destocking of world networks, largely as a result of regulatory changes, could lead to increased costs.
The Group’s operational management has enabled us to improve productivity. Our goal continues to be to confirm excellent margins in the second half, even if sales should continue to decline.”
- Consolidated net sales 990.3 million euro (1,167.2 €/mln at 30.06.2023, -15.2%).
- Industrial gross margin 295 million euro (€ 327.8/mln at 30.06.2023)
29.8% return on net sales (28.1% at 30.06.2023) - EBITDA 173.8 million euro (191.2 €/mln at 30.06.2023)
EBITDA margin 17.5% (16.4% at 30.06.2023) - EBIT 104.1 million euro (117.6 €/mln at 30.06.2023).
EBIT margin 10.5% (10.1% at 30.06.2023) - Profit before tax 77.8 million euro (98.2 €/mln at 30.06.2023)
- Net profit 52.1 million euro (64.8 €/mln at 30.06.2023, -19.6%)
- NFP -408 million euro (434 €/mln at 31.12.2023)
- 270,100 vehicles sold worldwide (324,600 at 30.06.2023)
- Capital expenditure 77.3 million euro (65.8 €/mln in the first half of 2023)
- 2024 interim dividend of 11.5 eurocents per share (2023 interim dividend 12.5 eurocents)
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Pontedera, 29 July 2024 – At a meeting today chaired by Matteo 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 2024.
Piaggio Group business and financial performance at 30 June 20241
Group consolidated net sales totalled 990.3 million euro (-15.2% from 1,167.2 million euro at 30 June 2023).
The industrial gross margin was 295 million euro (327.8 million euro in the year-earlier period, -10%), for a higher return on net sales of 29.8% (28.1% at 30 June 2023).
Group operating expense was 190.9 million euro (210.2 million euro at 30 June 2023).
The changes in the income statement described above generated consolidated EBITDA of 173.8 million euro (191.2 million euro at 30 June 2023, -9.1%). The EBITDA margin rose to 17.5% (16.4% at 30 June 2023).
EBIT amounted to 104.1 million euro (117.6 million euro at 30 June 2023, -11.5%). The EBIT margin was 10.5% (10.1% at 30 June 2023).
Pre-tax profit for the first half was 77.8 million euro (98.2 million euro at 30 June 2023, -20.8%). Income tax for the period was 25.7 million euro, with an impact on pre-tax profit of 33%.
In the first half of 2024 the Piaggio Group reported a net profit of 52.1 million euro (64.8 million euro at 30 June 2023, -19.6%).
Net financial debt at 30 June 2024 stood at -408 million euro, an improvement of 26,1 million euro from -434 million euro at 31 December 2023.
Group shareholders’ equity at 30 June 2024 was 443.2 million euro (416 million euro at 31 December 2023).
In the first half, Piaggio Group capital expenditure amounted to 77.3 million euro (65.8 million euro in the year-earlier period).
Business performance in the first half to 30 June 2024
In the first half to 30 June 2024, the Piaggio Group sold 270,100 vehicles worldwide (324,600 in the first half of 2023, -16.8%), and reported consolidated net sales of 990.3 million euro (1,167.2 million euro at 30 June 2023).
Two-wheelers:
In the first half of 2024, the Group sold 211,200 two-wheelers worldwide (267,400 in the first half of 2023, -21%), generating net sales of 788 million euro (954.7 million euro at 30 June 2023, -17.5%).
The figure includes spares and accessories, on which turnover totalled 80.9 million euro (84.1 million euro in the first half of 2023, -3.9%).
In Europe the Piaggio Group had a 21.4% share of the scooter segment; on the North American scooter market its share was 27.2%. In North America the Group also continued work to consolidate its presence on the motorcycle market with the Aprilia and Moto Guzzi brands.
Commercial vehicles:
In commercial vehicles, the Piaggio Group reported 2024 first-half sales volumes of 58,900 vehicles, up 3.1% (57,100 in the year-earlier period), with net sales of 202.3 million euro (212.5 million euro at 30 June 2023, -4.8%). The figure includes spares and accessories, where turnover totalled 31.8 million euro (+6.3% from 29.9 million euro in the first half of 2023).
At geographical level, performance was positive in the Americas, where, thanks to the rise in sales volumes (+53.6%), turnover increased by 39.5%. Performance was also positive in India, with volumes increasing 3.4% and turnover up 2.9%.
Piaggio Fast Forward:
Piaggio Fast Forward (PFF), the Boston-based subsidiary of the Piaggio Group active in robotics and mobility for the future, continued sales of its terrestrial drones gita®, gitamini® and the new kilo™, a revolutionary robot featuring smart following technology, which was presented in March. With a payload of up to 130 kg, kilo™ is fitted with 4D radar imaging and the innovative package of sensors developed by PFF, enabling it to follow the operator, move autonomously, and travel along more than 100 paths stored in memory.
Gita®, gitamini® and kilo™ are produced 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 designed and developed sensors with an innovative technology offering unparalleled safety, which have been fitted on the new Moto Guzzi Stelvio. 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 2024
Supplementing the information published above or at the time of approval of the interim report at 31 March 2024 (directors’ meeting of 9 May 2024), this section illustrates key events in and after the first half of 2024.
On 14 May, the new Vespa Primavera 150 and Vespa Sprint 150 made their debut on the Chinese market, with a major event combining culture, design, Italian style and fashion held in Shanghai at the Shangsheng-Xinsuo (the Columbia Circle), the city’s new cultural complex. The evening was attended by institutional representatives including Italy’s Consul General in Shanghai, Tiziana D’Angelo, and stars from the Asian arts world.
On 4 June, the Piaggio Group said that the Corte di Cassazione, Italy’s supreme court of appeal, had dismissed as inadmissible the appeal filed by Peugeot Motocycles SAS and Peugeot Motocycles Italia against the ruling of the Milan Court of Appeal of 16 January 2023, which upheld the first-instance judgement of the Court of Milan that, with the Peugeot Metropolis, the Peugeot entities had infringed the Italian portion of a Piaggio & C. S.p.A. European patent. Peugeot Motocycles Italia has been required to pay to Piaggio & C. S.p.A. as result of the ascertained infringement at more than 1 million euro.
On 8 June, the 2024 edition of Aprilia All Stars was held at the Misano circuit, bringing together more than 20,000 bikers from all over Italy and Europe to celebrate Aprilia, its bikes, its riders and its history.
On 11 June, Michele Colaninno, Chief Executive Officer of the Piaggio Group was elected for a second term as 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 17 June, the Vespa project “The Empty Space”, an infinite Vespa space beyond the dimensions of time, was presented. A “non-place place” embodying the timeless values of a brand that, since its introduction, have revolutionised the way we move and think. The event included the presentation of the Vespa Summer Edit fashion collection and Vespa By The Sea, a creative take-over of the beach at Paraggi, which was “dressed” by Vespa.
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Outlook
In the absence of additional critical factors in the global macroeconomic situation, thanks to its portfolio of iconic brands, admired around the world as Italian symbols of elegance, sportiness and advanced technology, Piaggio hopes to maintain the margins of the last few months for full-year 2024, independently of possible temporary slowdowns on some markets.
The current difficulties in international transport arising from the Israeli-Palestinian conflict and the related rise in costs and delivery times will continue to be managed through careful inventory and procurement planning, with a constant focus on the search for greater efficiency.
In light of this, Piaggio confirms the investments planned in new products in the two-wheeler sector and in commercial vehicles, and the consolidation of its commitment to ESG issues. In Italy, important investment plans have been drawn up for the coming years, to be ready for the current energy transition. The decision to verticalise the development and production of strategic assets will be the key for efficient management of the new technologies.
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Interim dividend
Having approved the financial statements as at and for the six months to 30 June 2024 and the directors’ report pursuant to art. 2344-bis of the Italian Civil Code, and received the opinion of the independent auditors, the Board of Directors authorised distribution of a gross interim dividend for 2024 of 11.5 eurocents to each entitled ordinary share (an interim dividend on ordinary shares of 12.5 eurocents was approved in 2023), for a total amount of Euro 40,733,677.12.
The ex-dividend date (coupon 23) is 23 September 2024; the record date is 24 September 2024 and the payment date is 25 September 2024.
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 2024, which will be illustrated during a conference call with financial analysts, is available on the corporate website at www.piaggiogroup.com/it/investor.
1The main alternative performance indicators used by the Piaggio Group, representing the data monitored by management, are as follows:
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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;
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Industrial gross margin: net sales less costs to sell;
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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.
