Piaggio's First Quarter Profit Slides Nearly 40% on Currency Headwinds
First Quarter Financial Results and Impact of Currency Fluctuations
Profit and Sales Performance
May 8 (Reuters) - Italy's Piaggio, known for its iconic Vespa scooters, reported an over 39% drop in its first-quarter net profit to 5.3 million euros ($6.2 million) on Friday, sending its shares 6% lower.
Vehicle Sales Volume
The company sold 108,400 vehicles between January and March, up from 106,800 units a year ago.
Currency Headwinds and Management Commentary
CEO Statement
"The appreciation of the euro against other currencies is clearly having a negative effect on sales in India, the United States and Asia," CEO Michele Colaninno said in a statement. "That said, our internationalisation strategy remains central to our approach and must continue."
Key Financial Metrics
Net Sales and EBITDA
• Q1 consolidated net sales fell 1.6% to 364.9 million euros at constant exchange rates; including currency effects, sales were down 7.8%
Outlook for the Year
• The smaller drop in constant-currency sales gives Piaggio confidence for the rest of the year, Colaninno said
• EBITDA was at 57.5 million euros, versus 62.0 million euros in the same period last year; EBITDA margin was 16.8%
Capital Expenditures
• Capital expenditures were 24.2 million euros in the quarter, down from 39.4 million euros a year ago
($1 = 0.8501 euros)
(Reporting by Anna Uras in Gdansk, editing by Milla Nissi-Prussak)
