Latest news with #MicheleColaninno
Yahoo
30-07-2025
- Automotive
- Yahoo
Piaggio & C. SpA (PIAGF) Q2 2025 Earnings Call Highlights: Strong Margins Amid Revenue Decline
Gross Margin: 30.4% in the second quarter, one of the best achieved by the group. EBITDA Margin: 17.7% in the second quarter, among the best for the group. Revenue Decline: Approximately 13% decrease in the first half of the year. Net Financial Position: Stable compared to December 2024, despite declining revenues. Warning! GuruFocus has detected 8 Warning Signs with PIAGF. Release Date: July 29, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Piaggio & C. SpA (PIAGF) achieved a gross margin of 30.4%, one of the best in the group's history. The company maintained a strong EBITDA margin of 17.7% in the second quarter. Piaggio & C. SpA (PIAGF) successfully managed costs and margins without engaging in price wars. The company is focusing on brand equity and differentiation across its 2-wheel, 3-wheel, and 4-wheel vehicles. Piaggio & C. SpA (PIAGF) is investing in new technologies and assets, including a robotics division in Boston. Negative Points Revenues declined by approximately 13% in the first half of 2025, with significant drops in Europe, the US, and China. The company lost 1% market share in Europe due to destocking of EURO 5 vehicles. Logistic costs remain high, with no significant reduction expected in the near term. The market share in India's LCV segment continues to decline, affected by government subsidies for electric vehicles. The performance in commercial vehicles in EMEA and Americas showed a negative trend in revenue terms despite positive volume performance. Q & A Highlights Q: Can you comment on your current market share situation in Europe versus last year, and do you expect a recovery in the third quarter? Also, what are your expectations for India, given the declining market share in the LCV segment? A: Michele Colaninno, CEO: We have lost 1% market share in Europe due to the destocking of EURO 5. We chose not to discount our products to maintain gross margins. We expect a potential market share recovery in the third quarter as destocking concludes. In India, despite a slight market share decline, the market is growing, and we anticipate revenue growth in the second half due to new product launches. Q: Why has there been a discrepancy between volume and revenue performance in the commercial vehicles segment in EMEA and Americas? A: Michele Colaninno, CEO: The market is declining for all competitors. We maintain a strong market share in Italy and are working to improve our European organization, particularly in Germany, Spain, and France. The launch of the electric Porter in Europe is promising, especially for urban areas, and we expect it to perform well in the long term. Q: Can you explain the divergent trends in vehicle registration across Europe, and are you seeing aggressive pricing from Asian competitors? A: Michele Colaninno, CEO: The decline in markets like France, Germany, and the UK is due to consumer hesitation rather than a lack of interest in two-wheel vehicles. We are not engaging in price wars with Asian competitors, focusing instead on maintaining brand equity and strong dealer relationships. Q: What are your expectations for the second half of the year, given the current consensus pointing to a 10% growth in revenues and EBITDA? A: Michele Colaninno, CEO: While it's challenging to provide a precise forecast, we expect third-quarter top-line numbers to be better than last year. Maintaining a 17% EBITDA margin is a daily challenge, but we anticipate improved performance compared to the previous year. Q: Are there any expected savings from logistic costs by year-end? A: Michele Colaninno, CEO: We do not anticipate reductions in logistic costs. The situation remains unchanged, with some shipping routes still affected by global conditions. We are prudently projecting logistic costs to remain consistent with the first half. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Reuters
29-07-2025
- Automotive
- Reuters
Vespa maker Piaggio's profit falls 42% in first half of 2025
July 29 (Reuters) - Italy's Piaggio ( opens new tab said on Tuesday its net profit fell 42.2% to 30.1 million euros ($34.84 million) in the first half of 2025 in a contracting market for motor vehicles. Piaggio, known for its iconic Vespa scooters, sold 238,400 vehicles between January and June this year, compared to 270,100 in the first half of 2024. "In historical moments like these, with international trade disputes and increased geopolitical tensions, being able to remain flexible, controlling liquidity and financial management, is essential," CEO Michele Colaninno said in a statement. The manufacturer said its earnings before interest, taxes, depreciation and amortization (EBITDA) fell 15.3% year-on-year to 147.1 million euros, with an EBITDA margin of 17.3%. The group also pledged to distribute an interim dividend of 4 euro cents per share on its 2025 results. ($1 = 0.8639 euros)
Time of India
29-05-2025
- Automotive
- Time of India
Piaggio will soon take a call on launching new scooter range in India
HighlightsPiaggio will evaluate plans in June 2025 to enter India's mass scooter segment, moving beyond its premium Vespa brand. India could become an export hub, with new scooters also targeted for the African market. Piaggio is cautious on electric two- and three-wheelers in India due to low margins, despite having products ready. Global markets show mixed trends, with optimism in Vietnam but continued challenges in China and other parts of Asia. Piaggio will begin evaluating the results of its studies on launching a new scooter range for India in June this year. This was revealed by Michele Colaninno , Chief Executive Officer, in a recent Q&A session with analysts in Italy following the company's first quarter results for January-March. The company believes it is high time to enter the mass scooter segment in India 'as we see that we can match the competition now given that the GDP per capita is growing and we think we are now able to compete with other brands'. Colaninno had already indicated in recent times that Piaggio had a great opportunity to be part of the growing scooter segment in India which meant that it had to think beyond the niche premium positioning of Vespa . The feedback in June will show if the Italian automaker is confident of offering a competitively priced scooter range that can strike a chord with Indian customers. Also read: Piaggio CEO says it's time to look at mass segment scooters for India Passage to Africa If things do go according to plan, the new two-wheeler range produced in India will also be shipped out to Africa as part of a larger global strategy for Piaggio. 'As far as other markets are concerned, let's say we are thinking about going into Africa, as you know from India. And I confirm to you that strategically, in the medium to long term, it is a good opportunity for us. And I think that Africa could be the next India for our business,' said Colaninno. It was sometime in July last year when he first spoke of Piaggio's intent to look at a larger part of the Indian scooter pie. 'The mistake we have done in the past is more on the scooter side, where we have not been able to face the competition of low-cost vehicles. We have put in place a new team that will start from now, especially to target those kinds of vehicles,' said Colaninno. While the company would continue to be in the high/premium end with Vespa and Aprilia models, he added that this perhaps was not enough in terms of the overall scooter strategy. 'But at the same time, I think we have to be ready and able, more able than ready to fill the gap, let's say, with the competition that we have on scooters,' he said. If you take the Honda Activa, if you take TVS, they produce millions and millions of Colaninno There was a specific reference to competitors who have had a good run in the mass scooter space where numbers continue to grow at a brisk pace. 'If you take the Honda Activa, if you take TVS , they produce millions and millions of vehicles,' Colaninno pointed out. The Piaggio CEO was, however quick to add that such a comparison would not be apt. 'You cannot compare us with Honda, obviously, which has been there in the two-wheeler market for years in India. But we have…I think that we will take the right decisions to be ready and to enter the big volume market there. Not with the Vespa, not with the bike.' Upbeat about India The recent analyst session clearly reaffirmed the CEO's optimism about the Indian market and why he believed that it was imperative for his company to play a bigger role here. 'I am positive on India, I think it is a good place to be in. It is an enormous opportunity to be there…we will launch electric vehicles in the next (few) years and will continue to launch also thermic (internal combustion engine) vehicles in India in the next years,' he elaborated. The generous feedback for India continued with Colaninno insisting that it was a place where Piaggio was growing at an earnings level and that it was 'happy' about being there. 'We will introduce totally new vehicles in India because it is a different market. But for Europe and the US, I don't see the necessity to introduce totally 100% new vehicles,' said Colaninno Also read: Vespa maker Piaggio posts record margin despite 'anomalous' economy As far as electric mobility options for India was concerned, the company preferred to adopt a wait-and-watch attitude even while the transition was happening quite rapidly. 'The market is still going well. Electric mobility in India in the three-wheeled and two-wheeled business is low-margin. We have the vehicles, but we are not pushing, just waiting to see better purchasing power and reducing costs in the country,' he said. More specifically on electric three-wheelers, a segment that is growing quite fast, Colaninno pointed out that Piaggio was familiar with this business in India. 'We have 2,000 people there in a big factory. The three-wheeled electric vehicle market is subsidised and the state is putting money for this. We have the vehicles, no problem,' he added. Low margins inevitable In his view, the margins are 'lower for everybody' and it was not as if Piaggio was at a disadvantage compared to competition. The company plans to push mostly in big Indian cities and not for rural areas where the electric market is 'zero'. 'Given that we have done investments and we have the vehicle, we will be on the market. Obviously we are happy about the thermic engines that are more rural in India and we are gaining some market share over there in the specific segment,' said Colaninno. Asia is down, the consumer market is not recovering, especially in the premium market, even though we saw Vietnam in the last quarter that has shown, let's say, a plus. Even if it is a small plus, it is a plus compared to previous Colaninno While there was ample cause for cheer when it came to India, the scenario for Piaggio was not all hunky-dory elsewhere. 'Asia is down, the consumer market is not recovering, especially in the premium market, even though we saw Vietnam in the last quarter that has shown, let's say, a plus. Even if it is a small plus, it is a plus compared to previous quarters,' said Colaninno. And Vietnam, according to him, was 'very important for us, because it is a good market, it is a rich market and it is a high margin market'. Piaggio would now wait to see a 'rebirth' of the Asian markets. 'There is some slightly positive event in Vietnam. Thailand and Indonesia are still interesting for us,' he said. China strategy China, likewise, was 'still suffering' with the automotive market showing low numbers. Piaggio has a production facility in the country that is in the midst of restructuring and will be ready by the end of 2026. 'We are thinking of launching dedicated products for China market with our brands,' said the CEO. However, given that it is home to one of the biggest electric mobility businesses in the world, 'we will invest in those kind of vehicles' for the Chinese market. 'For the time being, it is not for exports, because outside of China, that business is still very, very low. We are investing, we will continue to invest in all the technologies — thermic engines, safety, electric engines — because we think the market will evolve, it will take time, but we will be ready to fulfill the needs of the customers, whether it is thermic or whether it is electric,' reiterated Colaninno.
RTÉ News
09-05-2025
- Automotive
- RTÉ News
Vespa maker Piaggio's revenue falls to €370.7m
Italy's Piaggio posted first-quarter 2025 consolidated revenue of €370.7m, down from €428m the same time last year, the company said today. Piaggio sold 106,800 vehicles in the first three months of the year, compared to 120,300 in the first quarter of 2024. Its gross industrial margin reached 30.5% of revenue, despite lower sales in some geographic areas. "The beginning of the year was still characterised by international markets awaiting stability and the persistence of macroeconomic and geopolitical complexities, which we continue to address with careful management even in competitive contexts not always favourable to European industries," CEO Michele Colaninno said in a statement. The Vespa maker's shares were down 8.2% today, having touched their lowest since April 2020.
Business Recorder
09-05-2025
- Automotive
- Business Recorder
Vespa maker Piaggio's revenue falls to 370.7 million euros
Italy's Piaggio posted first-quarter 2025 consolidated revenue of 370.7 million euros ($416.82 million), down from 428 million euros in the same period of 2024, the company said on Friday. Piaggio sold 106,800 vehicles in the first three months of the year, compared to 120,300 in the first quarter of 2024. Its gross industrial margin reached 30.5% of revenue, despite lower sales in some geographic areas. 'The beginning of the year was still characterised by international markets awaiting stability and the persistence of macroeconomic and geopolitical complexities, which we continue to address with careful management even in competitive contexts not always favourable to European industries,' CEO Michele Colaninno said in a statement.
