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Financial

18/03/2020

According to full-year corporate results for 2019, BMW Motorrad outperformed the rest of BMW Group in spectacular fashion. BDN financial editor Roger Willis reports.

Annual revenue from bikes rose by 9% to £2.166bn. Associated operating profit was 10.9% up at £178m. Operating margin improved to 8.8% from 8.1% during the previous year. Pre-tax profit grew by 10.7% to £171m.

In sober contrast, operating profit attributed to BMW’s hugely larger automotive segment plunged by 27.2% to £4.116bn and Group operating profit was 17% down at £6.782bn. Overall net profit suffered a 28.9% dive to £4.598bn.

Total yearly motorcycle and scooter production climbed by 15% to 187,116 units. The company said this significant increase was primarily due to the fact that production at its Chinese contract manufacturing partner Loncin’s factory in Chongqing now covers the full range of BMW-branded scooters.

As previously reported, global BMW retail motorcycle and scooter sales were 5.8% up to 175,162 — spread across more than 1200 dealerships in 90 countries. Six leading markets with five-digit volumes accounted for just over half of this tally — 54.3%. Germany was the biggest, boasting a 15% share, rising by 10.4% to 26,292 units. But Brazil’s 5.7% share was easily the fastest-growing contribution, stacking on 36.7% to reach 10,064. The only decline among major players was in the USA, where sales dropped by 3.3% to 13,379. Nevertheless, that still represented a 7.6% share in fourth spot, behind Italy in third on 8.9% and France in second on 9.9% — and just in front of Spain’s fifth place with 7.2%.