Piaggio (PIA) Q2 2024 earnings summary

Executive summary

• Net sales for H1 2024 were €990.3 million, down 15.2% year-over-year, with declines in EMEA, Americas, and Asia Pacific, but growth in India; sales volumes fell 16.8% to 270,100 units, with commercial vehicles up 3.1% and two-wheelers down 21.0%.

• Net profit was €52.1 million, a 19.6% decrease compared to H1 2023, with EBITDA at €173.8 million (margin 17.5%), and EBIT at €104.1 million (margin 10.5%).

• Margins improved to record or near-record levels, with gross margin at 29.8% (up from 28.1%), EBITDA margin at 17.5% (up from 16.4%), and EBIT margin at 10.5% (up from 10.1%).

• Strong cash flow generation led to net financial debt reduction to €408 million, leverage at 1.3x, and shareholders' equity increased to €443.2 million.

• Interim dividend set at €0.115 per share, down from €0.125 in 2023, with €28.3 million paid in H1 2024.

Financial highlights

• Consolidated net sales: €990.3 million (-15.2% YoY); net profit: €52.1 million (-19.6% YoY); EBITDA: €173.8 million (margin 17.5%, +117 bps YoY); EBIT: €104.1 million (margin 10.5%, +44 bps YoY).

• Net financial debt reduced to €408 million from €434 million at year-end 2023, supported by €118.7 million in operating cash flow.

• Investments in property, plant, and equipment and intangible assets totaled €77.3 million, up 17.4% year-over-year.

• Shareholders' equity increased to €443.2 million, despite €28.3 million in dividend payments.

• Net income fell 19.6% to €52.1 million, with financial expenses up 35.5% due to higher funding costs.

Outlook and guidance

• Margins are expected to remain stable or slightly improve for full-year 2024, despite declining volumes and market slowdowns in some regions.

• Ongoing investment in new products, electric mobility, ESG initiatives, and vertical integration of strategic assets.

• Prudent approach maintained due to international political crises, logistics challenges, and regulatory-driven destocking.

• CapEx increased by ~€11 million year-over-year, aligned with full-year targets and maintaining flexibility for H2 investments.

• No significant recovery expected in Asia for the remainder of 2024, though Vietnam is stabilizing and may see slight growth by year-end.