In its third-quarter and year-to-date financial results, Europe’s largest powered two-wheeler manufacturer can now boast an improved position.
During the three months to 30 September, Piaggio Group revenue increased by 6.5 per cent year-on-year to £238.2m. And while no operating profit for this period was included in the company’s statement, net profit almost doubled — up by 92.6 per cent — to £4.3m.
Piaggio attributed this recovery to growth in all of its key operating regions. Quarterly sales rose by 1.4 per cent in Europe, nine per cent in Asia and 18 per cent in India.
In particular, it highlighted a 2.3 percent YTD improvement in Vespa scooter brand sales across Western markets including the USA to 66,000 units and an overall 19.5 per cent increase for the Piaggio MP3 range to 14,100 units.
However, for the nine months of 2014 to date, decline remains evident. Consolidated revenue was down by 2.5 per cent to £734.6m. Operating profit fell by 2.4 per cent to £54.9m. Net profit dropped by 21.2 per cent to £17.3m — although that bottom line was affected by a one-off charge relating to an early bond redemption in the second quarter. Net debt was £345.6m, compared to £375.3m at the beginning of this year. The company has shipped 417,200 units worldwide so far, a three per cent reduction year-on-year. That figure includes both PTWs and light commercial vehicles.
The statement added that Piaggio Group maintains leadership of the European PTW market, with an overall share of 16 per cent and a 25.1 per cent in scooters. It also has a leading 20.9 per cent share of the US scooter market.
Reaction to this results announcement on the Borsa Italia in Milan was muted, with only a 1.3 per cent share price gain following its release.Â