Half-yearly and Q2 2023 results for BMW Group’s motorcycle operations illustrated a nicely lucrative spread of activity. But they attracted no particular attention from Group executive management board chairman Oliver Zipse, who was far too busy upgrading full-year automotive segment forecasts on the back of booming global car sales. BDN financial editor Roger Willis reports.
For the six months to 30 June, BMW Motorrad revenue grew by 15.5% to £1.661bn. Associated operating profit blossomed by 32.8% to £269.8m and operating margin rose to 16.2% from 14.1% in the first half of last year. Pre-tax earnings were 32.1% up to £270.7m and net profit added 13.9% at £191m. Total assets attributable to BMW’s bike business on the Group balance sheet had risen by 7.4% to £1.549bn since the beginning of this year.
Worldwide retail sales of BMW motorcycles, maxiscooters and a token handful of battery-electric steeds improved by a modest 4.9% to 112,871. Absolutely zilch information on model mix, which indubitably must have been oriented towards premium-priced products, was made available. Individual markets performance was also subject to sworn secrecy. However, BDN’s previously published domestic data-mining tracked UK first-half registrations 16% up to 5626 units, for what that’s worth.
Q2 global deliveries to customers advanced by 8% to 64,936, eliciting a 14.4% revenue increase to £853.2m. Operating profit was 24.4% up to £136.4m, pre-tax profit improved by 24.2% to £137.4m and net profit put on 5.7% to £95.9m.
BMW Motorrad didn’t benefit from any full-year outlook upgrade, though. Motorcycle segment deliveries are still predicted to increase “slightly”. Segmental operating margin is, as usual, expected to finish within a range of 8-10%. And RoCE (return on capital employed) should end up between 21 and 26%, again.
The results statement did clarify confusion about why BMW Group half-year net profit took a notional hammering, 50% down to £5.718bn. This was apparently due to a one-time gain of £6.649bn recorded in the same period last year, owing to realignment of the Group’s equity stake in its Chinese BMW Brilliance car manufacturing joint venture.
€-£ currency translation at forex rates applicable on 3 August.