Michelin net income up 45% in H1 2023

Michelin has reported its business results for the six months to 30 June 2023, and chief executive officer Florent Menegaux describes these as good within a context of flat or declining tyre markets. The company is increasingly generating revenue through non-tyre sales.

Sales rose 5.9 per cent year-on-year to €14.08 billion. While tyre sales followed market trends and were down 3.7 per cent, non-tyre sales grew by 17 per cent at constant exchange rates. Price-mix effect reached 9.4 per cent and currency affect was -1.0 per cent.

Segment operating income rose 11.4 per cent year-on-year to €1.70 billion. Michelin credits this achievement to “value management” offsetting cost inflation and declining sales volumes. Net income increased 44.7 per cent to €1.22 billion.

“The Group’s business results were good in the first half, in a context of accelerated market transformation to which we are constantly adapting,” says Florent Menegaux, chief executive officer. “Michelin enjoys a number of strengths including quality products and services that, together with the right pricing and mix, enable us to focus on the segments with the highest value generation.

“I would like to recognise our teams for their agility and these achievements in a persistently difficult environment for the Truck and Beyond Road segments,” Menegaux continues. “In High-tech materials, the deployment of our strategy is gathering pace with the announced acquisition of Flex Composite Group.”

Further details are available to read or download here.