Tyre manufacturer Pirelli UK Tyres Ltd has reported higher profits for 2024 despite a fall in turnover.
According to recently published accounts for the year to 31 December 2024, turnover fell by 2.3 per cent year-on-year to £480.8 million, from £491.9 million in 2023, with growth in the replacement tyre channel offset by weaker performance in original equipment and exports.
Original equipment sales dropped 4.1 per cent, ‘in line with strategic adjustments to customer partnerships’, while export turnover was down 10.9 per cent due to ‘lower demand in key international markets’. Replacement sales grew 7.7 per cent thanks to ‘higher volumes and product mix improvements’.
Despite the decline in turnover, profit before tax rose by almost 48 percent to £21.1 million, up from £14.3 million in 2023. The company, whose headquarters are in Burton upon Trent, credited ‘favourable trends in raw material prices’ alongside ‘operational efficiencies within factory operations’ and reduced energy costs, although it noted that these gains were partly offset by higher labour costs.
The company, which manufactures premium car and SUV tyres at its plants in Burton and Carlisle, employed an average of 1,182 people during the year, up 5.4 per cent on 2023. It made donations to local and national charities and community organisations amounting to £26,000 during the year.
The directors said they were ‘satisfied with the development and performance of the company during the year and with the position of the company at the end of the year’.
Pirelli highlighted continued investment in its UK facilities, including new machinery at Carlisle to meet demand for larger premium tyres.
The report also warned of risks from commodity and energy price fluctuations, credit conditions in the automotive sector and volatility linked to its defined benefit pension scheme.
On stakeholder engagement, the company noted: “Pirelli’s responsible management runs through the entire value chain. Every operating unit integrates economic, social and environmental responsibility in its own activity, while cooperating constantly with other units and with stakeholders.”
It added: “The directors recognise that the company’s employees are fundamental and core to our business and delivery of our strategic ambitions. The success of our business depends on attracting, retaining and motivating employees.”
