Full-year results for Suzuki’s motorcycle business contrasted growing global sales volume and turnover with declining profit. BDN financial editor Roger Willis reports.
Total revenue for the 12 months to 31 March 2019 increased by 3.5% to £1.784bn. Asian emerging markets were the biggest contributor, 15.4% up at £909m, with India responsible for the most significant individual portion, rising by 18.1% to £384m. The developed world was decidely mixed, though. While North America put on 2.7% to £237m, Japanese domestic market turnover was 7.7% down to £134m and Europe slumped by 10.5% to £276m.
Associated operating profit plunged by 21.2% to £25.4m. Suzuki said this was mainly owing to a decrease in European sales of large-capacity models.
Worldwide wholesale shipment volume was 10.6% higher at 1.743 million bikes. Asia provided the driving force, with 14.4% growth to 1.435 million. Among the most successful Asian countries, India stacked on 29.3% to 636,000 and the Philippines added 21.5% to 192,000, both record highs. Indonesia was 33.3% up to 96,000. However, China dropped by 8.2% to 367,000. No figures were provided for developed markets.
For its new fiscal year, Suzuki has forecast 4.7% growth to 1.825 million bikes and made yet another solemn undertaking to shareholders about enhancing profitability from motorcycling activities through structural reforms.     Â
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