Pirelli reports 2021 net profit of €321.6M, up from 2020's €42.7M, while revenue up 23.9% to €5.3B on 15.7% total volume growth, mix improvements; growth expected in 2022, with efficiencies, price/mix offsetting inflation, raw material prices, forex

Sample article from our Automobile Industry

February 24, 2022 (press release) –

2021 RESULTS ABOVE TARGETS: REVENUES 5.3 BN EURO, ADJUSTED EBIT AT 816 MN, CASH FLOW BEFORE DIVIDENDS 431 MN

TOTAL VOLUMES +15.7% (HIGH VALUE VOLUMES +20.2%) AND PRICE/MIX +9.1%

NET PROFIT RISES TO 321.6 MN

FOURTH QUARTER PRICE/MIX RECORD AT +16.3% BECAUSE OF PRICE INCREAES AND MIX IMPROVEMENT

 

LEADERSHIP POSITION CONFIRMED ON THE KEY SUSTAINABILITY INDICES

 Full year 2021

-      Revenues: +23.9% to 5,331.5 million euro compared with 2020 (organic variation +24.8% excluding forex effect -0.9%), above targets of ~5.1 and ~5.15 billion euro

-       Adjusted ebit: +62.8% to 815.8 million euro (501.2 million euro in 2020): the improvement of price/mix and efficiencies more than offset the impact of the external context (raw materials, forex, and inflation)

-       Adjusted ebit margin at 15.3% (target between ~15% and ~15.5%)

-       Net result: +321.6 million euro (+42.7 million euro in 2020)

-       Net cash flow before dividends: +431.2 million euro (+248.8 million in 2020), above target of ~390 and ~410 million euro

-       Net Financial Position: -2,907.1 million euro (-3,258.4 million euro at end 2020), target <3.0 billion euro. Debt/Adjusted ebitda ratio at ~2.4x (target ~2.6x)

-       Research & Development expenditure: 240.4 million euro in 2021 (4.5% of sales), of which  225.1 million euro destined to High Value activities (6.0% of segment revenues)

-       In 2021 significant improvements in terms of sustainability performance

-       Board approves new EMTN program of 2 billion euro

***

OUTLOOK AND 2022 TARGETS

-       In 2022 growth is expected, even in a volatile context due to inflationary and geopolitical tensions

-       Efficiencies and price/mix will more than offset the impact of the external context (raw materials, inflation and forex)

-       Revenues estimated between ~5.6 and ~5.7 billion euro, with volumes expected between ~+1.5% and ~+2.5% driven by High Value (~+6% and ~+7%)

-       Price/mix seen growing between ~+5.5% and ~+6.5%

-       Adjusted Ebit Margin expected between ~16% and ~16.5%

-       Net cash generation before dividends expected between ~450 and ~480 million euro

-       Investments at ~390 million euro (~7% of revenues)

-       Net financial position at ~-2.6 billion euro

-       Actions to mitigate impact of Russia-Ukraine crisis ready

 

PUBLISHED ON: 23 FEBRUARY 2022, 17:48 CET

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