Stopping can be good for business. Italian brake maker Brembo knows this very well indeed. Bucking negative economic trends, the company has recorded record growth over the last five years.
Brembo is doing especially well in China.
The Bergamo-based business’s strong performance has not gone unnoticed. Brembo’s stock price rose 770% soon after its recent listing on Milan’s stock exchange. No surprise when you read performance figures like this:
Brembo Group’s net consolidated revenues for the third quarter of 2016 amounted to €566.8 million, up 11.1% compared to the same period of the previous year.
The good news continues, in its Q3 report (.pdf), Brembo stated sales increased 8.5% in Italy, 3.7% in Germany and a very healthy 17.7% in the United Kingdom. In contrast, sales in France declined by 10.0%.
Brembo is doing well in Asia, where the Indian market rose by 7.1%.
The company’s operations in China performed exceptionally well seeing growth of 123.0%. Most probably spurred on by this growth, Brembo is building a new plant in Nanjing. The facility is due to come on stream in summer 2017.
North America – USA, Canada and Mexico – showed a 5.5% increase in sales in the third quarter of 2016. After a long period of falling sales, growth returned to Brembo’s South American business. Sales in – Argentina and Brazil were up by 6.4%.
Founded in January 1961, Brembo has slowly gone from strength to strength. The group employs around 8,000 people and currently has facilities in Mexico and Poland. The Polish plant is about to get bigger too.
The Italian brake maker is not putting the brakes on expansion-wise. It intends to continue expanding at a global level.
As well as fashion, art, food and wine, Italian companies such as Brembo, excel in the engineering field. The market for all Italian products is global, as Brembo appreciates.
It’s good to write about a success story. Brembo certainly is one and counts as another entry in Italy Chronicles Good Italian Things category.
Might be worth investing in a few Brembo shares.