Piaggio Group first quarter 2021
Commenting on its first quarter 2021 financial results, Piaggio Group Chairman and CEO Roberto Colaninno said: "The Piaggio Group closed the first quarter of 2021 with very positive results at global level. Appreciation for the design, style and technology of our Italian brands continues to grow; sales of two-wheelers rose by 35% from the first quarter of 2020 and by 22% from the first quarter of 2019. Consolidated net sales were the highest since 2007, and both EBITDA and net profit were our best-ever first quarter results.
"At the same time, the high level of cash generated in part through careful working capital management permitted a significant debt reduction of more than € 100m compared with the first quarter of 2020.
"Nevertheless, we have to consider that the Covid pandemic is still a risk and so we continue to monitor each individual market closely. Clearly, the Indian continent is suffering and as always we shall keep a close eye on social responsibility; the market will recover and be better than before."
The Piaggio Group sold a total of 135,000 vehicles of all kinds worldwide in Q1 (+15.3% from 117,100 in the year-earlier period) and reported consolidated net sales of € 384.7m. The growth in volumes arose in all geographical regions.
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| Roberto Colaninno, Group Chairman: "Sales of two-wheelers rose by 35% from the first quarter of 2020 and by 22% from the first quarter of 2019. Consolidated net sales were the highest since 2007, and both EBITDA and net profit were our best-ever first quarter results." |
In two-wheeler terms, the Group sold 103,200 two-wheelers worldwide (+35% from 76,400 at 31 March 2020), generating net sales of € 296.9m, an increase of 42.2% from € 208.8 in the year-earlier first quarter. The figure includes spares and accessories, on which turnover totalled € 29.6m, an increase of 13.2% from € 26.2m in the year-earlier period.
The company says that 2021 first-quarter two-wheeler sales were particularly significant in India and America (rising by more than 90%), in Asia Pacific (+47.2%) and on the European market, notably in Italy, with a volume increase of almost 70%.
In Europe, the Piaggio Group boosted its market share in both scooters and motorcycles and retained a strong positioning on the North American scooter market with a 32.9% share, up from its previous share of 23.7%. In North America, the Group is also working hard on consolidating its presence on the motorbike market with the Aprilia and Moto Guzzi brands.
In the scooter market, global sales rose by almost 37%, led by the Vespa brand, the three-wheel scooters, the Liberty high-wheel scooter and the rise in sales of the new version of the Piaggio Beverly.
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| Moto Guzzi will celebrate its 100th anniversary at its historic Mandello del Lario factory on September 9-12. |
In motorcycles, Moto Guzzi reported an outstanding first quarter, with its highest-ever sales volumes and net sales, notably for the Moto Guzzi V7 and V85TT. The first quarter of 2021 was also extremely positive for the Aprilia brand, whose net sales were the highest since 2007 (almost double the figure of the year-earlier period and up by almost 50% from the first quarter of 2019), assisted by the Aprilia RSV4 Supersports model, with an increase of 40%, and the new Aprilia RS and Aprilia Tuono with 660 cc engines, which generated strong market interest.
Q1 Group consolidated net sales totalled € 384.7m, the best first-quarter result since 2007, with an increase of 23.5% (+28.1% at constant exchange rates) against € 311.4m in the first quarter of 2020.
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| The much-anticipated Aprilia RS 660 |
The industrial gross margin was € 111.2m, up 26.1% (+26.4% at constant exchange rates) compared to € 88.1m at 31 March 2020. The return on net sales was 28.9% (28.3% at 31 March 2020).
Group operating expense in the first quarter to 31 March 2021 was € 87.6m, an increase of € 9.5m. The rise in operating expense was closely linked to the improvement in net sales and shipments.
EBITDA was € 56m, the best first quarter result to date, with a strong increase of 40.8% (+38.4% at constant exchange rates) from € 39.8m in the first quarter to 31 March 2020. The EBITDA margin was 14.6% (12.8% at 31 March 2020).
EBIT amounted to € 23.5m, more than double (+135.1%) the result of € 10m at 31 March 2020. The EBIT margin was 6.1% (3.2% at 31 March 2020). Pre-tax profit in the first quarter was € 18.5m, a sharp increase (+254.2%) from € 5.2m at 31 March 2020. Income tax for the period was € 7.4m, with an impact on pre-tax profit of 40%.
The Piaggio Group's net profit was € 11.1m, its best-ever first quarter result, with a more than three-fold increase against € 3.1m in the first quarter of 2020. Net financial debt at 31 March 2021 stood at € 448.6m, an improvement of € 100.1m from € 548.6m at 31 March 2020. Compared with the financial position at the end of the first quarter of 2020, which was severely affected by the block on sales as a result of the COVID-19 pandemic, the reduction in debt was achieved through careful management of working capital and the operating cash flows generated by the Group's positive business performance, which also enabled it to absorb a higher capital expenditure requirement.
The net financial position at 31 December 2020 was € 423.6m, giving cash absorption of € 25m in the first quarter of 2021. The two-wheeler business is subject to seasonal trends, absorbing resources in the first half of the year and generating resources in the second half.
In the first quarter, Piaggio Group capital expenditure amounted to € 35.6m, an increase of 24.8% from expenditure of € 28.5m in the first quarter of 2020.
