Michelin Cie Gen Unsp/Adr (MGDDY) Q4 2023 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good evening. Yves Chappot 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 flattish at 28.3 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 sales in 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 group's 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, pooled by both products and geographies. Our non-tire sales were up 10%, which means around 146 million euros at constant scope of consolidation. And by the way, I'm happy to report that in the integration of our latest acquisition, Flexible Composite Group is well on track. We had this year a negative 2.9% adverse exchange rate effect as most currencies declined against the euro. If we now look at our segment operating income, it reached an all-time high of 3.6 billion euro. And the margins were up 0.7 points, 70 basis points, to 12.6% of our sales. The price effect w...