Univergomma reports 10% sales increase in 1H ‘23, Momo range renewal in ‘24

Despite a 12 per cent drop in car tyre sales, an 18 per cent decline in the truck sector and a 34 per cent drop in agricultural tyre sales in the second quarter of 2023, according to ETRMA data, Italian wholesaler Univergomma is reporting a 10 per cent increase in turnover in the first half of 2023.

Univeragomma Group turnover hit 150 million euros as of 30 June 2023, up almost 14 million euros compared with the same period in 2022 and up 28 per cent (over 33 million euros) compared to 2021.

11 million euros of turnover increase came from car tyre sales, driven by the continuous growth of all-season tyres and products imported by the group. “We also note the progressive increase in sales of both the Max Tires and Overgom subsidiaries which marked a +26 per cent compared to the same period last year”, company representatives wrote in a statement.

The group also improved its margin performance by over three percentage points, according to the company, thanks to “the lowering of import charges and better logistics management, the group’s real strong point”.

In terms of cash flow, company representatives noted the improvement in collection times, the result of strong and careful credit management, recovering over 10 days of turnaround.

As a result, the group’s net financial position stabilized at last year’s levels, despite the strong development in terms of investments and inventory. Moving forward, the group expects an end-of-year growth to settle around 4 per cent.

Momo range set for 2024 renewal

Furthermore, continuous investments in the Momo product are highlighted with a range that will be completely renewed in all its summer, all-season and winter segments by mid-2024.

According to Univergomma, these investments are designed to “optimize production sites and therefore make logistics more efficient”. In future, Momo production will be repositioned between Europe and Vietnam.

These investments will lead the brand to have over 120 all-season sizes, given the strong growth of the segment. However, the Winter range will also be completely renewed with sizes that will include up to 22 inches for the first time, and in the first quarter of 2024 a product dedicated to electric cars will also be launched, with an A-labeling as already obtained by the UHP M300 product.

The Italian brand also plans to invest heavily in strengthening its presence not only in Italy but also abroad with the expansion of the international sales network as well as a greater focus on the European and US markets.