Piaggio Group’s 2017 full-year results revealed a modest degree of resurgence for Europe’s largest powered two-wheeler manufacturer. BDN financial editor Roger Willis reports.
Total annual revenue increased by 2.2% to £1.191bn. Sales of scooters, mopeds and motorcycles accounted for £812.8m of that, a 3.7% improvement. Light commercial vehicles were 1.2% down at £347.6m.
However, cost controls plus a better model mix pushed operating profit 18.8% up to £64.1m. Operating margin grew from 4.6% to 5.4%. Pre-tax profit stacked on 57.1% to £35.6m. Net profit rose by 42.3% to £17.7m.
Net debt shrank by 9% year-on-year to £396.2m. Group leverage ratio therefore dropped to 2.3 from 2.9 in 2016. Capital expenditure was reduced by 10.3% to £76.9m.
Global PTW sales volume improved by 9.3% to 376,000 units. European leadership was maintained with an overall 15.1% market share and a 24.2% scooter share. North American scooter market share reached 22.1% and scooter volume in India climbed by 71.1%. Brand-wise, worldwide Vespa sales were 10% up. New Piaggio Liberty and Beverly models assisted in a 7.7% rise for big-wheeled scooters.
Without giving numbers or percentages (presumably because they are so small), Piaggio also claimed “important” results for group motorcycle brands. Aprilia apparently achieved higher sales across its entire range, from big-inch RSV4, Tuono, Shiver and Dorsoduro machines through to 125cc products. And the company said Moto Guzzi was boosted in particular by the retro V7 family.