Although US powersports giant Polaris expects annual growth outlook for 2023 to remain fairly weak, particularly in its crucial domestic market, a combination of strong wholesale availability, higher pricing and dealer demand for inventory boosted Q1. Retail performance was generally a disappointment, though. BDN financial editor Roger Willis reports.
Total quarterly turnover improved by 22.4% to £1.75bn. Resultant operating profit was 60.8% up at £129.3m. Net profit rose by 62.2% to £91m, before a non-GAAP adjustment represented the bottom line as growing by 47.1% to £95.5m.
Revenue from the key Polaris off-road vehicle (ORV) segment, which primarly covers both sport and utility side-by-sides, plus quadbikes, but also includes snowmobiles, put on 18.6% to £1.278bn. Wholesale uptake was reportedly driven by higher volume and favourable pricing. However, North American retail ORV unit sales fell by 10%.
In the on-road segment, dominated by Indian Motorcycle medium and heavyweight cruisers, but also featuring Slingshot sporting trikes and moped-licenced Aixam quadricycles, revenue climbed by 41.9% to £259.7m. Broadly referring to the Indian brand, Polaris said wholesale success was bolstered by better product availability on the back of an improving supply chain environment, as well as a favourable product mix. Sales of related parts, garments and accessories also surged by 19%.Â
Nevertheless, Indian retail sales in North America were flat. The only redeeming aspect of that was retail for comparable motorcycles on home turf (ie Harley-Davidson) sank by a double-digit percentage during the quarter.
$-£ currency translation at forex rates applicable on 2 May Â