Piaggio (PIA) Q4 2024 earnings summary

Executive summary

• Achieved record EBITDA and gross margins (up to 29.2%) despite a 14.3% revenue decline to €1,701.3M, mainly due to dealer destocking and APAC premium market contraction.

• Net profit fell 26.2% to €67.2M, with 481,600 vehicles sold globally, down 13.9% from 2023.

• CapEx increased by €20M (up 12.2% to €182.7M), focused on factory upgrades, product innovation, and regulatory compliance.

• Maintained a stable dividend payout (15.5 eurocents/share), reflecting reduced net income but supporting shareholder satisfaction.

• Strong brand performance, with Moto Guzzi achieving record revenues and Aprilia's RS 457 driving growth.

Financial highlights

• Gross margin rose to 29.2% (€497.1M), the highest ever, despite lower sales.

• EBITDA reached €286.7M (16.9% margin, all-time high), down 11.8% year-over-year.

• Net financial debt increased to €534M, mainly due to working capital and CapEx.

• Operating cash flow was positive at €144.1M, though down from €185.2M.

• EBIT was €147.7M (8.7% margin), down 18.2% year-over-year.

Outlook and guidance

• 2025 priorities include net debt reduction, higher operating cash flow, working capital improvement, and CapEx containment.

• Expect gradual improvement in 2025, contingent on macroeconomic and geopolitical stability.

• Focus on expanding dealer network in APAC and India, strengthening EMEA, and increasing Motoplex penetration.

• Continued investment in product launches, regulatory compliance, and efficiency enhancements.

• No plans to enter low-price competition; will maintain premium brand positioning.