After the relatively amazing amount of detail provided for its motorcycle division’s centenary full-year 2023 figures, BMW Group bean counters have slammed their corporate desk lid firmly shut on any full explanation for distinctly disappointing Motorrad performance in the first quarter of 2024. BDN financial editor Roger Willis reports.
Q1 revenue suffered a 6.5% decline to £750.5m. Associated operating profit plunged by 31.2% to £91.2m. Operating margin fell from 16.5% to 12.2%. Net profit sank further, 31.8% down to £64.5m. Quarterly BMW retail motorcycle and scooter sales worldwide retreated by a relatively modest 3.1% to 46,434 units.
A somewhat vague outlook reference predicting improved demand and an increase in deliveries to customers — tied to “full availability of models, including the R1300GS” — suggested that Q1 model mix had actually been fraught, hence the profitability slump. Additional information relating to motorcycle products, efficacious or otherwise, remained entirely absent.
Generalised warnings were flagged up, though. “The situation in the Middle East became increasingly volatile,” we were advised. “And it must be assumed that the threat posed in the Red Sea by Houthi militia will cause some logistical challenges. Our outlook does not account for any further escalation.”
BMW Group is evidently monitoring these developments and potential implications for its course of business from the war in Ukraine. “In view of growing unpredictability, actual macro-economic and geopolitical developments in some regions may deviate from expectations.” Well just fancy that. Sighs of relief all round from under-informed Motorrad dealers?
€-£ currency translation at forex rates applicable on 8 May