For its 2018 full financial year to December 31, the Piaggio Group reported an improvement in performance from the previous year, with progress on all its main earnings indicators, a strong increase in Ebit and net profit, higher capital expenditure and a reduction in debt.
During 2018, the Group sold 603,600 vehicles in total worldwide, an increase of +9.2% (552,800 shipments in the previous year), and reported consolidated net sales of 1,389.5 million euro.
Sales volumes increased in India (+23.5%) and in Asia Pacific (+9.7%), while in the EMEA and Americas regions (-4.3%) reduced volumes are said to largely reflect the impact of lower market demand for 50 cc vehicles.
In two-wheeler terms, the Group sold 393,100 units worldwide, an improvement of +4.6% (376,000 in 2017), generating net sales of 957.9m euro (942.1m euro in 2017). The figure includes spares and accessories, on which turnover totalled 125.2m euro, an increase of 3.3% from 121.2m euro in 2017.
The company reported a strong rise of +30.3% in sales volumes on the Indian two-wheeler market, "driven by the excellent results of Vespa and Aprilia SR", and an increase of +9.7% in two-wheeler sales volumes in Asia Pacific.
In Europe Piaggio says it has again "confirmed its leadership of the scooter segment, with a share of 25.3%. The Group also maintained a strong positioning on the North American scooter market, with a share of 23.9%.
"In the scooter segment, excellent results were achieved by the Vespa brand, which reported +16% growth in worldwide shipments and the highest level of sales since 2007; all geographical areas contributed to this result, with a significant improvement in India, Asia Pacific and Europe. Sales volumes rose for the MP3 three-wheeler, "reflecting in particular the positive response to the new engine displacements, and to the Aprilia SR scooter on the Indian market".
In motorcycles, Group volumes increased "largely thanks to the Aprilia brand, which reported an improvement of +24.8%, assisted by the new Shiver 900 and Dorso Duro 900 and the SX 50".
Group consolidated net sales totalled 1,389.5m euro, an improvement of +4.3% from 1,332.4m euro in 2017. At constant exchange rates, net sales rose by +8.2% from the previous year.
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| On the track, new Aprilia Racing CEO Massimo Rivola heads up a new MotoGP team for 2019 with new arrival Andrea Iannone alongside Aleix Espargaró, with Bradley Smith as test rider for the aggressively styled black livery RS-GP. There are two new crew chiefs in Antonio Jimenez and Fabrizio Cecchini, with Romano Albesiano as Technical Director. Rivola commented "it is no exaggeration to think of us as a 'David' against the giants of world motorcycle racing, and I have no problem with this comparison since, in the end, David triumphed." With 104 World Championships to its name (54 Aprilia, 15 Moto Guzzi, 21 Derbi, 14 Gilera), the Piaggio Group says it is the most victorious motorcycle group of all times, with Aprilia holding the record (294) "for the most wins of any European manufacturer in the history of top motorcycle competition" |
The industrial gross margin was 423.6m euro, up by +4.5% from 405.4m euro in 2017. The return on net sales was 30.5% (30.4% in 2017). Operating expense sustained by the Group for the year ended 31 December 2018 amounted to 330.8m euro, down -0.7% from the previous year (333.1m euro); Ebitda was 201.8m euro, up by +4.9% (+7.4% at constant exchange rates) from 192.3m euro in 2017; Ebitda margin was 14.5% (14.4% in 2017), "the best annual result reported since the IPO (2006)". Profit before tax at 31 December 2018 was 67.8m euro, an increase of +69.4% (40.1m euro in 2017). Piaggio Group net profit for 2018 was 36.1m euro, an increase of +80.6% from 20m euro in 2017. Net financial debt at 31 December 2018 stood at 429.2m euro, an improvement of -17.5m euro from 446.7m euro at 31 December 2017. Group capital expenditure amounted to 115.3m euro, an increase of +28.6m euro, up 33% from 86.7m euro in 2017.
In commercial vehicles, the Piaggio Group reported strong progress, with 210,500 vehicles sold, up +19.1% (176,800 in 2017), and net sales of 431.6m euro, up +10.6% from 390.4m euro in 2017.
Piaggio Fast Forward (PFF), the Piaggio Group company headquartered in Boston and active in robotics and mobility for the future, is continuing development work on its first innovative project, Gita, which will be assembled and produced at the new facility in Charlestown. Gita is a smart vehicle able to move autonomously in today's increasingly complex urban environments. It can accompany the user, map their surroundings, exchange data and monitor other moving objects.
On 15 January Moody's Investors Service (Moody's) upgraded its Piaggio Group rating from "B1" to "Ba3" and assigned a "Stable" outlook.
