Pirelli announces positive 2023 results and updates Industrial Plan 24-25

Milan, Italy – The Board of Directors of Pirelli & C. has approved financial results to 31 December 2023 which were above the targets indicated in November 2023 which had been revised upwards during the year. These results confirm the effectiveness of the business model and implementation of strategic plans in line with the Industrial Plan.

In 2023 revenues were 6,650.1 million euro (target ~6.6 billion euro), with growth of 0.5% compared with 2022 thanks to the great improvement of price/mix. Organic revenue growth was +6.8% (impact of forex and hyperinflation in Argentina and Turkey -6.3%). High Value accounted for 75% of total sales (71% in 2022).

The Board also announced an update of the “Industrial Plan Update ’24-’25” which will be presented to the financial community by the Executive Vice Chairman, Marco Tronchetti Provera, Chief Executive Officer, Andrea Casaluci, and Top Management.

The Industrial Plan Update 2024-2025 represents the updating of the Industrial Plan 2021-22|25 presented on 31 March 2021 to take into account the changed and volatile external context which has characterized the last three years: growing geopolitical tensions, significant slowdown of economic growth and demand, penalized by high inflation and rise of interest rates.

Pirelli has dealt with this scenario by leveraging on its resilient business model, focused on High-Value – the segment with the highest growth – its already optimized and always more local-for-local production and on an organization that is rapid in the implementation of mitigation actions. This has enabled Pirelli to end the 3-year period 2021-2023 with results above expectations and to consolidate its positioning in the industry as Leading High Value Consumer Tyre Player.

In particular, the company has: Reinforced its focus on High Value, which at the end of 2023 reached, two years ahead of schedule, a weight of 75% in group revenues (70% weight in 2020, reference basis of the previous plan)
Improved profitability, with an Adjusted Ebit Margin of 15.1% in 2023 (growth of 3.5 basis points compared with 2020), and confirms place among the highest of Tier 1 thanks to the great contribution of internal levers (price/mix and efficiencies)
Financial leverage more than halved in the 3-year period, with an Nfp/Adjusted Ebitda ratio at end 2023 of 1.56 times compared with 3.65 times at end 2020, thanks to strong cash generation
Accelerated decarbonization path with a reduction of CO2 emissions for Scopes 1 and 2 of 51% in 2023 compared with the reference year 2015 (previous target -42% in 2025) and 18% for Scope 3 (previous target -9% in 2025).