Brembo tempers revenue forecast despite core profit rise (updated)

Brembo NV

09/05/2024 16:12

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      EBITDA rose 5.1% in Q1 to 177 mln euros, margin at 17.6%
    

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      Revenue up 4.4% in Q1 to 1.005 bln euros
    

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      Sees "moderate" revenue growth in 2024
    

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      Sees FY EBITDA margin in line with 2023
    

  
 (Adds executive chairman quotes, details, context)
       May 9 (Reuters) - Italian premium brake maker Brembo
 BRBI.MI  posted on Thursday a 5% yearly increase in its core
profit in the first-quarter, as revenues in the period topped
the one billion euro quarterly threshold for the first time.
        The group however took a more cautious stance on its
full-year turnover "in an increasingly complex market context",
sending its shares down.
        Brembo on Thursday guided for a "moderate" revenue
increase in 2024, versus a previous forecast for mid-single
digit growth.
        Executive Chairman Matteo Tiraboschi told Reuters the
company found it reasonable to take a more prudent approach,
despite having full order books.
        "We've seen that our customers posted results showing
declines, even marked ones, the market is contracting," he said,
adding macroeconomic weakness and tensions on global trade were
also reasons to be cautious.
        By 1505 GMT Brembo shares were down 1.6%.
  
        Brembo's clients include automakers such as Tesla, BMW,
Mercedes, Maserati, Alfa Romeo as well as Chinese EV giant BYD.
  
        In the January-March period, Brembo's earnings before
interest, tax, depreciation and amortisation (EBITDA) amounted
to 177 million euros ($190 million).
        The EBITDA margin grew to 17.6% form 17.5% a year
earlier.
        The company on Thursday also guided for a full-year
EBITDA margin in line with that of 2023, when it came in at
17.3%. This suggests the margin will slightly contract during
2024.
    "We cannot rule out swings in this context, so again, we
prefer being prudent," Tiraboschi said.
        Revenue rose 4.4% to 1.005 billion euros, with the
motorbike applications business and Chinese market returning to
growth after two quarters down.
        Brembo, which is controlled by the Bombassei family with
a stake of around 70%, last month completed a process to move
its legal headquarters to the Netherlands.
 ($1 = 0.9295 euros)

 (Reporting by Alessandro Parodi in Gdansk and Giulio Piovaccari
in Milan; Editing by Tomasz Janowski/Keith Weir)
 ((giulio.piovaccari@thomsonreuters.com))