Full Year 2024 Compagnie Generale des Etablissements Michelin SCA Earnings Call Transcript
Key Points
- Michelin (MGDDF) reported a strong cash flow generation of EUR2.2 billion for 2024, marking the second-best performance in the company's history.
- The company has maintained a high employee engagement rate of nearly 85%, indicating strong internal morale and commitment.
- Michelin (MGDDF) has successfully reduced its CO2 emissions by 13% compared to 2023, showcasing its commitment to environmental sustainability.
- The company has increased the renewable and recycled content in its products to 31%, reflecting progress in its sustainability initiatives.
- Michelin (MGDDF) has a robust local-to-local strategy in the US, with 70% of its sales in the region being serviced by local production, enhancing its market resilience.
- Michelin (MGDDF) experienced a 3.1% decline in sales at constant exchange rates, with a significant volume decrease of 5.1% in 2024.
- The company faced challenges in the Specialty segment, particularly in the Beyond Road activities, which were impacted by a sharp decline in original equipment sales.
- There was a notable underperformance in the SR1 segment due to platform choices that did not perform well, affecting market share.
- Michelin (MGDDF) anticipates a EUR250 million headwind from raw material costs in 2025, including EUR100 million related to UDR compliance.
- The company is facing uncertainties in the market for 2025, with expectations of a flattish or slightly positive growth, but with potential volatility in the first half of the year.
Good morning for those of you that are in different time zones. Yves Chapot and myself are very happy to present our Michelin 2024 annual results. Before we enter into more details about the performance in the past year, I just wanted to resume on our Michelin in Motion Strategy 2030 because we are really deploying it.
If you look at what is on your screen, on the left side is the basis, the foundation of what we are building on: highly engaged team, a recognized and very powerful brand, a very strong innovation leadership, and unique R&D and industrial capabilities, and excellent market-defining products and services. With this foundation, we can not only excel in tires, but we can also expand the reach of Michelin offerings into Services and Experiences and in the Polymer Composite Solutions. So if we come back on Tires, we are addressing all mobility usages through better products.
One example of that is today, 65% of our
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