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Brembo raises 2023 revenue guidance after solid Q1

Issued at 2023-05-09



Brembo raised its full-year revenue guidance after posting a double-digit increase in the first quarter, the Italian brake maker said on Tuesday, driving its shares higher.

Following the news, the shares rose as much as 3.9%.

The Bergamo-based company now expects 10% revenue growth in 2023, compared with previous guidance for a mid-single-digit increase.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) rose 11.6% to 168.3 million euros ($185.3 million) in the first quarter.

Revenue climbed 12.2% to 961.9 million euros, beating analysts' consensus forecast of 944 million euros provided by Intesa Sanpaolo.

With overall investments of about 500 million euros, Brembo is growing globally and increasing its production capacity in three key countries - Mexico, China and Poland - on three continents, it said in a statement.

In Poland, the brake maker is set to build a cast iron foundry in Dabrowa Górnicza, which is expected to be fully operational in the first half of 2025.

In Mexico, the company will broaden a plant focused on manufacturing brake callipers in Escobedo, in the Nuevo León State.

"In China, we will expand the production and research areas of the Nanjing site," Executive Chairman Matteo Tiraboschi said.

By 1035 GMT, Brembo shares were up 2.7%, outperforming a 0.5% fall in Italy's All-Share index.

($1 = 0.9084 euros)



Source: marketscreener.com



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