Piaggio (PIA) Q3 2024 earnings summary

Executive summary

• Net sales declined 16.2% year-over-year to €1,357.2 million, reflecting weaker global demand, but EBITDA margin reached a record 17.3%, the highest in 22 years, driven by productivity improvements and cost management.

• Net income fell 27.4% to €62.2 million, mainly due to higher financial expenses and lower sales, while tax rate decreased by 2.5 p.p. to 31.5%.

• Strong brand performance, improved product mix, and investments in new products and factories supported average revenue per unit and margin expansion.

• U.S. and European markets declined or remained flat, but premium scooter segment leadership and market share were maintained.

• Asia saw declines in most regions except Indonesia and India, where margins and productivity grew.

Financial highlights

• EBITDA was €234.3 million, down 13% year-over-year, but margin improved to 17.3%; EBIT dropped 19.2% to €129.4 million.

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

• Net income was €62.2 million, down 27.4% year-over-year; financial expenses increased 27.4% to €38.5 million.

• Net financial debt increased to €461.2 million from €434 million at year-end 2023; free cash flow to equity was €44 million.

• Capital expenditure rose by €14–15 million year-over-year, reaching €117.4 million, driven by new products and facility upgrades.

Outlook and guidance

• No major market rebound expected by year-end; destocking of dealers nearly complete.

• No significant price increases planned despite rising costs; focus on productivity and maintaining profit margins.

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

• Healthy liquidity profile with gross cash of ~€457 million and no significant short-term debt maturities.

• Continued investment in new products, ESG initiatives, and light mobility as a key urban growth driver.