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International

08/09/2021

KTM, Husqvarna and GasGas parent Pierer Mobility not only staged a tremendous recovery in the first-half of 2021 — but also trounced its pre-pandemic record figures for the equivalent period in 2019. BDN financial editor Roger Willis reports.

Six-monthly revenue soared by 79.7% to £923.9m. Operating profit went nuclear, reaching £87.9m against a gestural £1.5m in the first half of last year. Operating margin hit 9.5%, up from just 0.3%. Net profit came in at £67.1m, replacing an £8.3m loss.

Of course, this data is qualified by Covid’s savage second-quarter impact in 2020, causing large-scale production and sales disruption. But it’s definitely impressive when contrasted to disease-free 2019 performance. In biennial terms, turnover rose by a third and operating profit more than doubled.

Commentators don’t have to look far to discern why. The company has grown exponentially. In the first half of 2019, it shifted 135,711 KTM and Husqvarna motorcycles. This year, to date at the end of June, the tally of KTM, Husqvarna and GasGas machines sold climbed to 176,045. While that was 94.9% up on the severely diminished total of 90,331 in 2020, it was also 29.7% higher than in 2019.

And in 2019 results, revenue streams from nascent electrically-assisted and pedal bicycle operations weren’t worth a mention. But the contribution of some 34,351 Husqvarna and R Raymon pedelecs surfaced in 2020. This business area has since expanded to 39,601 e-bicycles — representing 15.3% growth — plus 13,777 pedal bicycles in 2021, various branded as Husqvarna, GasGas and R Raymon products.

Rebounding demand in 2021 has seen combined sales of Pierer’s three motorcycle brands increase by 20.8% across Europe, with a joint market share of 11.3%. The company claims achievement of an identical 11.3% share in North America, and 18.9% in Australia and New Zealand. Sales of the KTM and Husqvarna brands represented in India have reportedly improved by 59% in relevant segments, taking a 6.9% share. 

Despite ongoing supply-chain challenges owing to Covid, Pierer’s executive board says the outlook remains positive and has substantially raised revenue guidance for its full fiscal year to December.

€-£ currency translation at forex rates applicable on 31 August