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PAIN BUT GAIN FOR BMW

BMW’s automotive operations may have plunged to a stonking half-year loss in 2020 but early-season strength helped its motorcycle business avoid the same fate. BDN financial editor Roger Willis reports.

Global BMW Motorrad retail sales across the six months in question fell by 17.7% to 76,707 motorcycles and maxiscooters. Revenue for the period was 17.8% down at £974.4m. 

Operating profit dropped by 66% to £58.7m and operating margin declined from 14.5% at this point in 2019 to 6%. Pre-tax profit was 65.8% lower on £57.8m. And net profit attributable to bikes lost 65.2% at £41.5m.

However, within that snapshot, Motorrad operations were on a significantly more negative curve in the second quarter. April-June revenue had fallen by 28.2% to £471.4m. That resulted in an operating loss of £6.3m, versus a Q2 profit of £92.1m last year.

Apart from being understandably coy about its rate of recovery in the second half, BMW pursued a recent policy of providing no further details of Motorrad divisional retail performance in individual markets at a quarterly or interim level. These are now reserved for the Group annual statement.  

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