Compagnie Générale des Établissements Michelin Société en commandite par actions (MGDDF) Q4 2023 Earnings Call Transcript


Compagnie Générale des Établissements Michelin Société en commandite par actions (OTCPK:MGDDF) Q4 2023 Earnings Conference Call February 12, 2024 12:30 PM ET

Company Participants

Florent Menegaux – Chief Executive Officer

Yves Chapot – General Manager and Chief Financial Officer

Conference Call Participants

Thomas Besson – Kepler Cheuvreux

Martino De Ambroggi – Equita

Michael Jacks – Bank of America

Jose Asumendi – JPMorgan

Monica Bosio – Intesa Sanpaulo

Sanjay Bhagwani – Citigroup

Steve Fernandes – Societe Generale

Ross MacDonald – Morgan Stanley

Florent Menegaux

Good evening. Yves Chapot and myself are very happy to welcome you to our 2023 Annual Results Presentation. And as you are going to see, then our results are very solid.

I’m very pleased to report that Michelin has delivered a high segment operating income despite adverse market conditions and currencies. We have been demonstrating, again, the quality of our business model, while improving people engagement and accelerating our sustainability roadmap. This reflects our group strategy to capture the full value of our differentiated offers and solutions that are designed to meet increasingly demanding customer requirements. Our sales have been flatish at EUR28.3 billion, but they were up 2% at constant exchange rates, with mix and price offsetting unfavorable market conditions. Our non-tire sales were up 10%.

So if we zoom in on our revenue, the tire selling markets were globally flat, but with an adverse mix and with OE growing in most segments and replacement facing massive destocking. The tire sales volumes were down 4.7%, reflecting our growth strategy of prioritizing markets and segments that do appreciate our unique value proposition. Our price and mix effects were up 5.7%, of which 1.2% was the mix, pulled by both products and geographies. Our non-tire sales were up 10%, which means around EUR146 million at constant scope of consolidation. And by the way, I’m happy to report that in the



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