Piaggio (PIA) Q4 2023 earnings summary

Executive summary

• FY23 net sales fell 4.4% to €1,994.6m; record EBITDA and net profit reached €325m and €91.1m.

• Strong growth in India and commercial vehicles offset lower two-wheeler sales and a sharp Asia Pacific slowdown.

Financial highlights

• EBITDA rose 9% to €325m; margin expanded to 16.3% from 14.3%.

• EBIT increased 13.8% to €180.7m; margin rose to 9.1% from 7.6%.

• Gross margin reached €574.7m, up 3.6%, and 28.8% of sales versus 26.6%.

• Profit before tax rose 6.4% to €135.3m; income tax was €44.3m and net profit increased 7.3% to €91.1m.

• Operating expenses were €394m versus €396.2m; financial expenses rose to €45.3m from €31.5m, mainly on higher funding costs and a one-off amortized-cost charge.

Outlook and guidance

• Geopolitical tensions and macroeconomic uncertainty make guidance difficult; priorities include margins, productivity and controlling production, logistics and procurement costs.

• Israeli-Palestinian conflict-related transport disruption may raise shipping costs and times; inventory management, procurement planning and efficiency measures are the response.

• Planned investment in two-wheeler and commercial-vehicle products will continue alongside a strengthened ESG commitment.

• New launches include Aprilia RS 457, Moto Guzzi Stelvio and Vespa 946; positive reception and Moto Guzzi V100 Mandello success supported 2024 expectations.