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BMW: BOXER REBELLION

Profitability at BMW Motorrad was punched painfully in the first three months of 2022, with paucity of posh parts a predictable excuse. BDN financial editor Roger Willis reports

Total revenue actually improved by 6.1% to £681m, while global retail sales volume was 11.3% up to 47,403 mainly premium-priced motorcycles and scooters. No further details, of either model mix or regional product performance, were made available in yet another typically secretive corporate quarterly statement from those cunning Bavarian bean counters.  

But BMW Group couldn’t conceal the fact that Q1 cost of sales in its bike division had risen by 11.7% to £537m and resultant operating profit suffered a 20% decline to £92m. Operating margin plunged to 13.5%, against 17.9% in the same period last year. Net profit was 12.7% down to £76m. An unrequited semiconductor shopping list probably took the blame.

Full-year forecasts were vague as ever. Motorcycle deliveries to customers are predicted to “increase slightly” and operating margin should finish “within a range of between 8 and 10%”. The motorcycle segment is “not currently expected to be substantially impacted by the war in Ukraine”.

 €-£ currency translation at forex rates applicable on 5 May.

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