PROFITS SLUMP AT PIERER

Although Pierer Mobility’s full preliminary results for 2020 boasted a record turnover figure, there were some weaker details. BDN financial editor Roger Willis reports.

That 0.7% annual revenue increase to £1.35bn was indeed impressive, considering the ongoing Covid pandemic’s impact. But operating profit fell by 18.6% to £94.5m, with operating margin declining from 8.7% to 7%. Net profit was 27.5% down at £61.2m.

During the year, combined motorcycle sales volume worldwide was 3.5% lower at 270,407. Some 212,713 of these carried KTM branding. Husqvarna accounted for 49,046 and GasGas added 8648. Electric bicycle sales, under the Husqvarna and R Raymon brands, grew by 33.5% to 56,064, contributing £99.2m to total revenue.

European dealers shifted about 100,000 of the motorcycles and all of the e-bikes. The rest were sold overseas.

The company claims to have expanded its presence in Europe, North America and Australia, taking a 12.7% share overall and increasing registrations by 21.6%. 

In the USA, its largest single market, share rose from 9.4% to 11.6%. In Australia, a wholly-owned subsidiary outperformed the strongly growing market, with a 46.5% registrations rise and share reaching a record 20.4%. 

However, Pierer acknowledges that operations in India were hardest hit by the pandemic, but says local partner Bajaj nevertheless managed to sell more than 60,000 KTM or Husqvarna-badged machines.