Europe’s largest powered two-wheeler purveyor has celebrated an all-time record bottom line in its 2023 annual results. But Piaggio Group’s performance was sullied by shrinking sales volume and revenue, owing to economic downturns afflicting much of the Asia Pacific region. BDN financial editor Roger Willis reports
Consolidated group revenue during the full year actually fell by 4.4% to £1.707bn. Turnover in Europe and the Americas had remained stable. And a recovery for Piaggio light commercial vehicle operations in India provided a 14.9% revenue boost from that direction. But contributions from China and South-East Asian countries slumped by 23.8%.
On a brighter note, operating profit was 13.8% up to £154.6m, with operating margin increasing to 9.1% from 7.6% in the previous year. Pre-tax earnings rose by 6.4% to £115.8m, capped by net profit putting on 7.3% growth to a best-ever result of £77.9m. However, net debt also grew, rising from £315m at the end of 2022 to £371.3m on 31 December 2023.
During the past year, Piaggio sold 436,300 scooters and motorcycles worldwide, a 15.5% decline versus 2022. Related revenue was 8.8% down to £1.314bn. This figure included spares and accessories, the turnover from which added 1% to £134.4m. Specifically, PTW revenue was 0.9% higher across Europe and the Americas, with the Italian market notably improving by 8.7% and North American sales delivering a 3% gain. Sales in both India and Asia Pacific slowed.
In the scooter sector, Piaggio claimed a 22.4% share of the European market and a 29.7% share of the North American market. It also made a usual unsubstantiated claim of continued consolidation for the Aprilia and Moto Guzzi brands in North America’s motorcycle market. Also in the motorcycle sector, Piaggio says the market responded strongly to Moto Guzzi’s V100 Mandello model and showed clear interest in pre-booking for the new Moto Guzzi Stelvio. Again, no supporting data whatsoever was provided.
Commenting on his first annual results presentation since getting the top job, Piaggio’s rookie chief executive Michele Colaninno said: “With each quarter, the global macroeconomic scenario is becoming more difficult to interpret and very unstable, and this will continue through the current year.”
€-£ currency translation at forex rates applicable on 5 March