Piaggio & C. Spa (Piagf) Q1 2025 profit sound Highlights: Navigating Market Challenges …

Appearance date: May 09 May 2025

You can find the complete copy of the earnings call in the complete earnings call.

• Despite a decline in sales, Piaggio & C. Spa (PiaGF) contributed a strong gross parade of 30.5%.

• The company has improved its processes and productivity management since 2022, from 25% gross margin.

• Piaggio & C. Spa (PiaGF) invests in electromobility, especially in China and India, to adapt to the market trends.

• The company effectively manages the cash flow by reducing the inventory value by 20 million compared to the previous year.

• Piaggio & C. Spa (PiaGF) explores new markets such as Africa, which is viewed as a promising opportunity similar to India.

• The general market demand for two-wheeler and all-wheel drive vehicles has decreased worldwide and influences the income.

• The USA market has decreased by 10%, the uncertainty about the tariffs affecting consumers' trust.

• The Asian market, especially China, is still suffering with low numbers for imported vehicles.

• Electromobility in India is a business with low margins, and the company is careful when it is promoted aggressively.

• The geopolitical situation and the currency fluctuations represent challenges for maintaining profitability and forecasting future performance.

Q: Can we expect a reversal of negative sales trend in the second quarter, especially in Europe? A: CEO Michael Conanino explained that the prediction of sales trends is a challenge, but he does not expect a significant turn of sales for the second quarter. However, he expects some positive results until the end of the year, since the second half of the previous year was influenced by declining volumes.

Q: Are you confident with consensus expectations of net debt of around 480 million or can we do it better? A: CEO Michael Conanino mentioned that the cash generation is a result of income, and although the goal is to be around 500 million, they want to keep it less than 500 million and recognize the challenging situation.

Q: Is there a strategic shift of scooters in view of the focus on motorcycles? A: CEO Michael Conanino made it clear that there is no strategic shift in scooters. The company continues to improve existing models and keep a strong presence in the scooter segment, which is still profitable and bargenerative.

Q: Is it reasonable to expect the gross margins to stay high all year round? A: CEO Michael Conanino stated that it will maintain the current gross margin and recognize that logistics costs and other factors could have an impact. However, you are working on maintaining these numbers.