Q1 2025 Pirelli & C SpA Earnings Call Transcript
Key Points
- Pirelli & C SpA (PLLIF) achieved an organic growth of 4.7% in the first quarter of 2025, showcasing strong commercial performance.
- The company reported a net income of €127 million, marking a 27% increase compared to the same period in 2024.
- Pirelli's high-value segment now accounts for 81% of group sales, up 4 percentage points from the first quarter of 2024.
- The company has implemented a successful efficiency program, generating €25 million in savings, which more than covers the impact of inflation.
- Pirelli confirmed its technological leadership with the launch of new products and maintained a strong market position in the electric vehicle segment in China.
- The overall economic scenario remains uncertain due to persisting commercial tensions and high inflationary pressures.
- Pirelli faces challenges from tariffs, particularly a 25% duty on car tires imported from Europe and Brazil to the US, which could impact profitability.
- Negotiations with Sino Group did not produce a solution to adjust governance to fully comply with EU and US regulations.
- The company is experiencing a negative net financial position of approximately €2.62 billion.
- There is a potential risk of economic slowdown impacting consumer demand, especially in the second half of the year.
Ladies and gentlemen, welcome to Pirelli's conference call in which Pirelli top management will present the company's first quarter, 2025 results.
A live webcast of the event and the presentation slides are available in the investor relations section of the Pirelli website. I remind you that the Q&A session will follow the presentation. Now, I would like to introduce Mr. Marco Tronchetti Provera. Please go ahead, sir.
Thank you very much and good evening, ladies and gentlemen.
The results of the first quarter of 2025 confirm the solidity of our business model in a challenging external scenario.
We closed the quarter with an organic growth of 4.7%. This result achieved through a consistent commercial performance is among the best in the industry.
3.9%, Michelin minus 2.5, Gia minus 2.2 expected at 1 minus 1.3. An improvement in profitability which is confirmed to be the highest in tier one.
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