may 03, 2017 - Piaggio Group

Piaggio Group: first quarter 2017

Consolidated net sales 309.1 million euro, up 0.7%    (307.1 €/mln in Q1 2016)  
Ebitda 41.2 million euro, up 10.2% (+10.4% at constant exchange rates) (37.4 €/mln in Q1 2016), the best Q1 performance since 2008   
Ebitda margin 13.3% (12.2% in Q1 2016)  
Industrial gross margin 95.1 million euro, up 4.7%    (90.8 €/mln in Q1 2016)  
Return on net sales 30.8% (29.6% in Q1 2016)  
Ebit 10.9 million euro (10.9 €/mln in Q1 2016)  
Ebit margin 3.5% (3.5% in Q1 2016)  
Profit before tax 2.5 million euro (2.1 €/mln in Q1 2016)  
Net profit 1.5 million euro, up 17.9%    (1.3 €/mln in Q1 2016)  
Net financial position -532.4 million euro     an improvement of 22 €/mln from -554.4 €/mln at 31 March 2016  
121,200 vehicles sold in the first three months of the year (in line with 2016)  
 
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Board authorises issue of long-term bonds for institutional investors for an overall nominal amount of 30 million euro
 
Pontedera, 03 May 2017 – At a meeting today chaired by Roberto Colaninno, the Board of Directors of Piaggio & C. S.p.A. examined and approved the interim report on operations for the quarter to 31 March 2017.
 
In the first quarter of 2017 the #piaggiogroup reported a positive performance compared with the year-earlier period, with improvements in all the main indicators and a reduction in debt.
 
Piaggio Group business and financial performance at 31 March 2017[1]  
 
Group consolidated net sales in the first quarter of 2017 totalled 309.1 million euroan improvement of 0.7% from 307.1 million euro at 31 March 2016.
 
The industrial gross margin at 31 March 2017 was 95.1 million euroup by 4.7% from 90.8 million euro in the year-earlier period. The return on net sales was 30.8%, an increase of 1.2 percentage points from the year-earlier period, the best first-quarter result reported since Piaggio was admitted for trading on the Italian stock exchange.
 
Operating expense sustained in the first quarter of 2017 amounted to 84.2 million euro, a slight rise (+4.2 million euro) from the year-earlier figure, generated largely by the increase in amortisation and depreciation (21.3 million euro, from 17.5 million euro in the first quarter of 2016).
 
The income-statement figures described above produced consolidated Ebitda of 41.2 million euro, the best first-quarter figure since 2008, with an increase of 10.2% (+10.4% at constant exchange rates)from 37.4 million euro in the first quarter to 31 March 2016. The Ebitda margin was 13.3%, the best first-quarter result reported since Piaggio was admitted for trading on the Italian stock exchange (12.2% at 31 March 2016).
 
Ebit in the first quarter of 2017 was 10.9 million euro, in line with the year-earlier period (10.9 million euro). The EBIT marginwas 3.5% (3.5% also at 31 March 2016).
 
For the first quarter of 2017, the Piaggio Group posted profit before tax of 2.5 million euroup 17.9% compared with 2.1 million euro in the first quarter of 2016. Income tax for the period was 1million euro, with an impact on pre-tax profit of 40%.
 
The #PiaggioGroup closed the first quarter of 2017 with net profit of 1.5 million euro, an increase of 17.9% compared with 1.3 million euro in the first quarter of 2016.
 
Net financial debt at 31 March 2017 stood at 532.4 million euro, an improvement of 22 million euro from 554.4 million euro at 31 March 2016. At 31 December 2016 net financial debt was 491 million euro, lower than at the end of the first quarter of 2017 due to the typical seasonal nature of the two-wheeler business, which absorbs financial resources in the first half of the year and generates them in the second half.
 
Group shareholders' equity at 31 March 2017 was 398.7 million euro, an increase of 5 million euro from 31 December 2016.
 
Piaggio Group capital expenditure in the first quarter of 2017 amounted to 18.3 million euro (26.2 million euro in the year-earlier period), of which 11.2 million euro for R&D expenditure (12.8 million euro in Q1 2016) and approximately 7.1million euro for property, plant and equipment, investment property and intangible assets (approximately 13.4 million euro in Q1 2016).
 
The total workforce of the Piaggio Group at 31 March 2017numbered 6,470 employees
The Group’s Italian employees numbered 3,509, unchanged from the end of 2016.
 
Business performance in the first quarter to 31 March 2017  
 
In the first three months of 2017, the Piaggio Group sold 121,200 vehicles worldwide, in line with 121,700 in the year-earlier period.
 
At geographical level, sales generated revenue growth in the EMEA and the Americas areas (+3.9%), which more than counterbalanced the decreases reported in India (-3.3% largely due to slower sales of commercial vehicles as a result of the Indian Government's demonetisation policy) and in Asia Pacific (-6.1%).
 
In the first quarter of 2017, the Group sold 82,500 two-wheelers worldwide (up 10.3% from 74,800 in the year-earlier period), generating net sales of 218.9 million euro, an improvement of 5.2% from 208.2 million euro in the first quarter of 2016. The figure includes spares and accessories, on which turnover totalled 29.7 million euro, an increase of 4.6% from the year-earlier period.
 
In the first quarter of 2017 the Piaggio Group continued to strengthen its presence on the European two-wheeler market, with an overall market share of 14.2% (13.6% in the first quarter of 2016), and 26.4% (24.5% in the year-earlier period) in the scooter sector alone, with a lead of almost 10 percentage points from the second competitor. On the Indian two-wheeler market, the Group more than doubled its sales volumes, thanks to the introduction of the new Aprilia SR 150 #scooter, which has been very warmly received. Analysing performance in Asia Pacific, Vietnam reported a decline in scooter sales volumes, while the Group expanded its offer in Thailand through its recent entry on to the motorcycle market with the introduction of the Aprilia and Moto Guzzi brands, flanking the already well-established scooter offer with the Vespa and Piaggio brands. The Group maintained a particularly strong presence on the North American scooter market, with a share of 21.6%; it is also committed to strengthening its position in motorcycles in North America.
 
Highlights in the scooter sector included the excellent results of the Vespa brand, which boosted worldwide sales by 8.5%from the first quarter of 2016, and notably strengthened its presence on the EMEA market, with net sales growth of 18.5%. Performance was also positive in high-wheel scooters, where the Group reported revenue growth at globallevel, largely thanks to the Beverly and the new Liberty.
Still in the scooter sector, the Aprilia brand also performed well, especially on the Indian market thanks to the Aprilia SR 150 sports scooter, which has been very well received, with significant growth in sales.
 
The Group also reported healthy performance in the motorcycle sector, thanks to a 7.1% increase in Moto Guzzi sales arising specifically from the new V9 Roamer and Bobber, the California range and the V7 line, which this year celebrated its 50th anniversary with an ad hoc model. Sales volumes also rose for Aprilia motorcycles, thanks specifically to the excellent response to the new super sports model RSV4 1000, which achieved an increase of more than 21% in part as a result of the strong return in terms of performance and image from Aprilia’s participation in the world MotoGP championship.
 
In the commercial vehicles sector, the Group sold 38,800 vehicles (47,000 in the first quarter of 2016) for net sales of 90.2 million euro (98.9 million euro in the quarter to 31 March 2016). The figure includes spares and accessories, where sales totalled 11.2 million euro (11.6 million euro at 31 March 2016). On the Indian market for three-wheel commercial vehicles, the PVPL subsidiary had an overall share of 30.9% and confirmed its leadership in the Cargo segment with a market share of 48.2%.An important growth program is being rolled out for commercial vehicles in 2017, beginning with the recent strengthening of the Group's presence in the high-potential markets of Latin America, Africa and Asia and the extension of the distribution network to 23 countries. 
 
In the first three months of 2017 the PVPL production hub also exported 3,419 three-wheel commercial vehicles worldwide. These sales arose in part in the EMEA and Americas areas and in part in the India area, in connection with responsibility for management of the individual markets.