MORE RECORD RESULTS FOR KTM

KTM Industries achieved seventh consecutive annual records for revenue, profit and bike sales volume in its preliminary 2017 full-year results. BDN financial editor Roger Willis reports.

Revenue increased by 14.2% to £1.35bn. Operating profit was 8.3% up at £116.6m. Pre-tax profit grew by 7.4% to £102.9m. Capital investment during the year was £158m, financed purely from cashflow without adding debt. This included £80.9m on product development. The company’s workforce expanded by 818 employees to 5887.  

Global sales volume stacked on 17.2% to a total of 238,334 bikes encompassing the KTM and Husqvarna brands, including those made and sold by KTM’s Indian partner Bajaj. This tally further strengthened KTM’s status as the largest motorcycle manufacturer in Europe, more than 70,000 ahead of nearest competitor BMW Motorrad.

For the 2018 business year, KTM Industries says it expects further organic growth in core areas, aided by the market launch of Husqvarna’s first street motorcycles — Vitpilen and Svartpilen models — and the twin-cylinder KTM 790 Duke. By 2022, sales of 400,000 motorcycles annually are targeted.

And in order further to increase trading liquidity of KTM Industries stock on the SIX Swiss exchange, main shareholder Stefan Pierer is considering placement of a limited portion of his stake with qualified and institutional investors in a prospectus-exempted offer in February 2018 via his affiliated companies. Pierer will continue to hold a controlling majority of the shares  — at least 60%.

This results statement was released after Austria’s Wiener Borse and SIX in Zurich closed for trading on 29 January. However, eager investors had already piled in during the session immediately prior to its announcement, pushing up KTM stock by 4.8%.