Leading Italian brake brand Brembo achieved quarterly turnover exceeding a billion euros for the first time ever in Q1 2024. The company’s executive chairman Matteo Tiraboschi attributed this to improved sales volumes in all of Brembo’s key business segments and the main markets in which it operates worldwide.
Consolidated revenue within the quarter rose by 4.4% to £854.4m. Sales of motorcycle brake applications were responsible for 12.5% of that. Operating profit was 8.5% up to £95.9m. Operating margin increased from 10.8% to 11.2%. Pre-tax profit added just 0.6% to £89.8m, though, and net profit fell by 2.2% to £63.9m.
Brembo’s net debt has been reconfigured to £450.3m from £304.1m, following introduction of the more rigorous IFRS 16 accounting standard, and had risen by £19.6m in real terms compared to 31 March 2023.
Weaker profitability and higher debt was associated to increased investment in the group’s global expansion strategy, focused on construction of the first Brembo braking components production plant purely dedicated to motorcycle manufacturers, expected to start operating in Thailand in 2025, which is set to lay the foundations for further development for its business in South-East Asia.
€-£ currency translation at forex rates applicable on 5 June