Posh model mix and premium prices evidently ensured that BMW Group’s motorcycle business was laughing all the way to its bank in Q1 2023, despite stagnant unit sales volume. BDN financial editor Roger Willis reports.
Total revenue during the period grew by a useful 16.8% to £820.4m. But associated operating profit went ballistic, 42.6% up to £135.4m, and quarterly operating margin improved to 16.5% from 13.5% year-on-year. Pre-tax income also sat on £135.4m, although growth was marginally lower at 41.3%. Net profit contribution by the Motorrad segment increased by 23.6% to £96.7m.
However, retail deliveries to customers worldwide advanced marginally by 1.1% to 47,935 motorcycles and maxi-scooters. The now-usual paucity of information on performance covering individual markets then kicked in. MCIA resources independently available to BDN indicated UK registrations for the brand in Q1 declined by 0.1% to 2677 bikes. Beyond that, we were none the wiser.
Oddly, BMW wasn’t so shy about bragging rights across its automotive segment — providing detailed breakdowns of delivery volumes throughout various global markets and even the role played in them by specific vehicle model variants. Battery-electric vehicle output also got a massive topical splash.
Motorcycles only reappeared as forecasting footnotes in the results statement. Annualised bike deliveries are “predicted to increase slightly”. Operating margin is “expected to finish within a range of between 8% and 10%”. And RoCE (return on capital employed) will be “between 21% and 26%”.
€-£ currency translation at forex rates applicable on 4 May.