Pirelli reports better than expected full year results
Milan, Italy – The Board of Directors of Pirelli & C. Spa approved preliminary and unaudited results to 31 December 2022, which grew above the targets indicated in November 2022, already revised upwards during the year. These results confirm the resilience of the business model and reflect the implementation of the key programs of the Industrial Plan 2021-2022|2025.
Over the period, regardless of the price increases, Pirelli further strengthened its positioning in the Car ≥18” replacement channel where volumes grew by +6.8% (market +3.1%) thanks to the renewal of the product portfolio. The performance in Original Equipment Car ≥18” was also positive (Pirelli volumes +8.5%, substantially in line with the market’s +8.9%), with a growing focus on higher rim sizes (the weight of ≥19” volumes grew by around 6 basis points representing almost 78% of those of Original Equipment ≥18”) and in electric (17% weight of Original Equipment ≥18” volumes, growing 2.7 times compared with 2021). On the other hand, there was a further reduction of the exposure to Standard (volumes of Pirelli Car ≤17” -9.2% compared with market’s -3.4%), with a mix always more oriented to the Replacement channel and products with higher rim sizes.
In 2022, the Company obtained around 300 new technical homologations with the main makers of Prestige and Premium cars, principally concentrated in rim sizes ≥19” and Specialties. The renewal of the product range continued with the introduction of 9 new Car lines, of which 4 dedicated to SUVs, with a particular focus on electric cars and hybrid plug-ins. The Winter offering was also broadened with the introduction of a line dedicated to colder temperatures (Ice Zero Asimmetrico) and other lines of a regional nature. In Moto, 3 new ultra-performance road and off-road products, while the Cycling range was completed thanks to 10 new products for Racing, Sport, Urban and Travel.
In 2022, the Company achieved gross benefits of 136.0 million euro which regarded product cost (modularity and design-to-cost), manufacturing (completion of optimization of the industrial footprint and efficiency actions), SG&A costs (optimization of the warehouse logistics network and negotiation actions in purchasing) and organizational costs.
In 2022, Car production capacity rose to 74 million pieces (+1 million compared with 2021), of which 54 million are High Value (+3 million compared with 2021). Plant saturation stood at around 90% (>90% in High Value). At the Bollate plant, the Company launched cycling production, meanwhile in Mexico and Romania work began on the enlargement of High Value production capacity. In the second half, given the sharp rise in energy costs in Europe, an action plan was implemented aimed at ensuring the continuity of production activities and business.
In 2022, the Company inaugurated its Digital Solutions Center at Bari, a centre for the development of software and Machine Learning algorithms and Artificial Intelligence in support of company structures and for the realization of new digital products and services for the entire Tyre world. In addition, the new CRM was adopted and permits the integral management of clients and the company launched coverage of the main factories with Industrial Internet of Things technologies to further improve the efficiency of production processes. In conclusion, the Company completed its Cloud Strategy to guarantee the continuity of the business, reduction of cyber security risks, lower management costs and reduce CO2 emissions (-40% compared with previous infrastructure).