Thursday, July 18, 2024
HomeNEWSINTERNATIONALBOXER KNOCKABOUT

BOXER KNOCKABOUT

Business got steadily tougher for BMW Motorrad in the first half of 2022. And the company doesn’t expect a recovery any time soon. BDN financial editor Roger Willis reports.

Revenue for the full six months was a slim 2.6% up to £1.393bn. But operating profit declined by 17.3% to £197m and operating margin fell from 17.5% to 14.1%. Net profit was 12.6% down. 

Global half-yearly retail sales volume dropped marginally by 0.1% to 107,555 motorcycles and maxiscooters. April-June numbers, when the seasonal shift should have indicated a strengthening performance, turned more consistently negative instead. Q2 retail bike deliveries to customers worldwide had retreated by 7.5% to 60,152. BMW Motorrad assiduously avoids providing sales data for individual markets in its quarterly statements. However, from MCIA sources we know UK headcount in Q2 was much worse — 31.4% down to 2172.   

As for the money, Q2 revenue fell by 0.5% to £723m. Operating profit sank by 14.8% to £106m and net profit was 12.5% in arrears at £88m.

BMW Group fielded plenty of valid excuses. The statement admits that it had assumed the supply situation for semiconductor components would ease during the second half of 2022. However, supply is no longer expected to improve appreciably over the remainder of the year, engendering an impact on production and sales. 

The group also anticipates higher raw materials and energy costs in the second half, the latter due to reduced gas supplies, cranking up output prices. And it says rising inflation and interest rates worldwide are likely to influence consumer spending behaviour in the coming months.

A significant slowdown in global economic activity and reduced IMF growth projections also get mentions, with the corporate finger pointing straight at war in Ukraine and intensification of supply-chain problems. 

€-£ currency translation at forex rates applicable on 3 August.

RELATED ARTICLES

Product News

ELECTRIC RESISTRATION DATA

After a month’s temporary respite, battery-electric power registrations plummeted once more in May, falling by 23.2% to just 304 units. Overall market share sank...