Piaggio (PIA) Q3 2024 earnings summary

Executive summary

• Net sales declined 16.2% year-over-year to €1,357.2 million for the first nine months of 2024, reflecting weaker global consumer demand and economic headwinds, with declines across all geographic segments.

• Despite lower sales, the Group achieved a record-high EBITDA margin of 17.3%, up from 16.6% a year earlier, driven by productivity improvements, cost management, and improved product mix.

• Net profit fell 27.4% to €62.2 million, mainly due to higher financial expenses and lower sales.

• Strong brand performance, new product launches, and investments in factories and digital innovation supported average revenue per unit and margin expansion.

• Sales volumes dropped 16.4% to 380,000 units, with two-wheeler sales down 20.5% and commercial vehicles up slightly.

Financial highlights

• EBITDA was €234.3 million, down 13% year-over-year, but margin improved to 17.3%, the highest for any nine-month period in 22 years.

• Net sales declined 16.2% year-over-year to €1,357.2 million; gross margin rose to 29.7% from 28.5%.

• EBIT dropped 19.2% to €129.4 million, with a margin of 9.5%.

• Net financial debt increased to €461.2 million from €434 million at year-end 2023, mainly due to higher CapEx and lower operational cash flow.

• Capital expenditure rose 13.2% to €117.4 million, driven by new products and facility upgrades.

Outlook and guidance

• No major market rebound expected by year-end; focus remains on profit margin, productivity, and continued investment in new products and ESG initiatives.

• 2024 and H1 2025 to be peak CapEx periods, with investment needs declining thereafter as product range is completed.

• European market expected to remain flat in 2025, with value growth from higher average retail prices.

• Strategic investments in Italy planned to support energy transition and vertical integration of key technologies.

• Guidance is closely tied to geopolitical and economic stability, with light mobility seen as a key urban growth driver.