BMW Group’s monumentally tedious 432-page tome detailing full-year results performance during 2024 landed on our desktop like a thunderclap. But as far as Motorrad content is concerned, it proved to be a damp squib. BDN financial editor Roger Willis reports.
Much was made of strongest annual retail deliveries to customers in the company’s history, amounting to a record 210,385 motorcycles and scooters sold. But this actually meant only a miniscule 0.6% increase. And yearly production had declined by 2.8% to 215,727 units.
Motorrad annual revenue rose by 0.2% to £2.713bn. Operating profit dropped by 23.6% to £166.8m. Operating margin fell from 8.1% to 6.1%. Pre-tax profit was 23.3% lower, after favourable pricing and product-mix effects were offset by higher material and development costs.
Return on capital employed came in at 15.5%, down from 22.1% in the previous year. According to BMW bean counters, this change reflected mainly the downturn in profit before tax on one hand and an increase in net working capital, due to a rise in average inventory levels, on the other. Net profit garnered from the Motorrad segment suffered a 24.6% decline to £116.3m.
Providing further retail sales figures, the results presentation said a total of 118,704 motorcycles were delivered to European customers in 2024, 2.3% up year-on-year. Within that tally, German sales volume grew by 8.3% to 26,177, while the French market fell by 4.5% to 20,693. Italy put on 2.7% to 16,617 and Spain added 2.3% to 13,009. The UK didn’t warrant a mention.
On the other side of the Atlantic, bike sales improved by 3.3% to 47,692 units. Most notably, Brazil posted solid growth of 8.2% to 15,267. But the USA managed only a 1.5% rise to 17,272. Subdued economic activity in Asia also saw the Chinese market slump by 12.4% to 13,872.
Banging his drum prior to the results, head of BMW Motorrad Markus Flasch ignored any inconvenient facts (such as embarrassingly thin profitability) that might emerge: “I would like to extend my heartfelt thanks to our customers and community around the world for the tremendous trust they have placed in us once again in 2024. BMW Motorrad claims first place in the global premium motorcycle segment. Our market leadership in numerous segments and markets in based on our claim to innovation leadership, our highly attractive product offering as well as the consistent strategic focus on brand strength. Based on these success drivers, BMW Motorrad is well-positioned for the future and so I approach the year 2025 with a very positive outlook.”
His boss, BMW Group chief executive Oliver Zipse, pointedly disagrees, though, against the background of Donald Trump’s raging global trade war. Zipse has just warned investors that EU, US and China tariffs will cost the group an additional €1bn at least this year, after profits fell by 36% in 2024. Group earnings before tax had dropped to €11bn last year, compared with €17bn in 2023.
€-£ currency translation at forex rates applicable on 14 March