(Alliance News) - Pirelli & C. Spa reported Thursday that it ended the first quarter with revenues essentially stable year-on-year, at EUR1.695 billion from EUR1.699 billion in the same period of the rpecedent year.

Organic revenue growth was 4.6 percent, despite a 4.8 percent negative impact from foreign exchange and hyper-inflation in Argentina and Turkey. High Value is 77% of total revenues from 75% in the first quarter of 2023.

Volume performance in the first quarter was 2.3% positive, reflecting the strategy of focusing on High Value and gradually reducing exposure on Standard.

Price/mix increased by 2.3% in the first quarter due to improved mix for the gradual migration from Standard to High Value and improved channel mix. Substantially stable was the price component.

Adjusted Ebitda for the first quarter was EUR376.3 million and up 4.6 percent from EUR359.7 million in the corresponding period of 2023.

Adjusted Ebit was EUR262.6 million and an improvement of EUR14.5 million, with the margin rising to 15.5 percent from 14.6 percent in the first quarter of 2023 due to the contribution of internal levers.

Net income for the first quarter was EUR100.4 million from EUR115.0 million in the first quarter of 2023 and discounts impacts related to hyper-inflation, the normalization of which is expected later in the year.

Net cash flow before dividends was negative EUR673.4 million and an improvement of EUR18 million from the first quarter of 2023 or about EUR40 million excluding the impact of the Hevea-Tec acquisition.

Net financial position as of March 31, 2024 is negative EUR2.94 billion from EUR2.2 billion as of December 31, 2023 and from EUR3.24 billion as of March 31, 2023.

The liquidity margin as of March 31 is EUR2.50 billion and ensures coverage of maturities on debt to banks and other lenders until the end of the first quarter of 2027.

Pirelli also confirmed revenue targets of EUR6.6-6.8 billion for 2024, capital expenditures of EUR400 million, an adjusted Ebit margin of between 15 percent and 15.5 percent, and net cash flow of between EUR500 million and EUR520 million, with NFP of EUR1.95 billion and ROIC of 21 percent.

Pirelli & C. stock closed Thursday up 0.9 percent to EUR6.07 per share.

By Giuseppe Fabio Ciccomascolo, Alliance News senior reporter

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