Despite admitting a failure to supply adequate inventory for its European network, the motorcycle division of Kawasaki Heavy Industries still hit a high note on global revenue and profits in half-year results to September. BDN financial editor Roger Willis reports.
Total turnover for the period rose by 28.3% to £1.621bn. Operating profit was 46.6% up to £172m. Operating margin improved to 10.5% from 9.2%. Worldwide wholesale motorcycle shipments during the six months in question expanded by 16% to 254,000 units.
Revenue from bikes shipped to developed markets increased by 14.5% to £548m. But it could have been better without stumbling shipment shortages for Europe, where volume suffered a 24.2% decline to 25,000 — 8000 fewer machines available to dealers. North America didn’t share the same problem. The US and Canada flaunted a 24.4% rise to 51,000. Overall developed-world numbers were just 1.1% up to 96,000.
Motorcycle volume in emerging countries recovered by 27.4% to 158,000. Related turnover was 22% up to £338m. Volumetric star turn was the Philippines, adding 58.5% to 103,000. Indonesia put on 9.5% to 23,000. China and Thailand lost ground and Brazil flatlined.
Utility vehicles, ATVs and personal watercraft contributed a 49.3% revenue gain to £441m, with unit sales rising by 11.4% to 39,000. General-purpose petrol engines were responsible for the rest.
Enhanced full-year divisional forecasts covering Kawasaki’s full fiscal year to March 2023 now predict revenue 22.8% up to £3.354bn and operating profit growth of 49.3% to £341m.
Yen-Sterling currency translation at forex rates applicable on 11 November Â