Behind promises of future recovery and some idle boasts, Piaggio Group’s half-yearly corporate results were generally grim. BDN financial editor Roger Willis reports.
Consolidated Group revenue fell by 15.2% to £833.9m. Operating profit registered an 11.5% decline to £87.7m, although operating margin improved slightly from 10.1% to 10.5%. Pre-tax profit was 20.8% lower at £65.5m. Net profit sank by 19.6% to £43.9m.
Net debt stood at £343.6m on 30 June 2024, down from £365.5m on 31 December 2023. However, no comparison was made available of the net debt position on 30 June 2023.
In the first half of this year, Piaggio’s global powered two-wheeler sales volume dropped by 21% to 211,200 units, generating a revenue contribution of £663.8m — 17.5% in arrears on comparable turnover in the first half of 2023. That figure included £68.2m from spares and accessories, which was 3.9% down.
Piaggio Group claimed a 21.4% share of European scooter sales and 27.2% of the North American scooter market. Group chief executive Michele Colaninno also flaunted motorcycle market bragging rights for the Moto Guzzi and Aprilia brands, which he said had shipped a record 11,888 bikes into European dealers during Q2.
Colaninno’s broadly upbeat assessment of his company’s position appeared at odds with harsh reality. “Once again, Piaggio has reported very positive margins, in line with our targets,” he opined. “Our product strategy is proving correct, and our brands continue to strengthen well around the world.”
But there were some qualifications to this hubris flow. “On the markets, there was a slowdown, mainly in Asia and America,” he admitted. “For the rest of the year, we expect non-euphoric but recovering markets in some regions of south-east Asia. The Indian continent performed well and is expected to continue reporting improvements.”
And then delving deeper, Colaninno added: “The international political crises mean we have to take a prudent approach, since logistics and the current necessary destocking of world networks, largely as a result of regulatory changes, could lead to increased costs. The Group’s operational management has enabled us to improve productivity and our goal is confirming excellent margins in the second half, even if sales continue to decline.”
€-£ currency translation at forex rates applicable on 30 July