Despite what was described as the recent challenges of global economic uncertainty, increased competition and various supply chain issues affecting the entire automotive industry, Triumph has reported that its motorcycle business nevertheless performed well during the financial year to 30 June 2024.
Annual turnover reached £692.8m, down slightly from £703.3m in the previous year. But operating profit declined sharply, falling by £30.3m to just £9.4m. Principal reason was the negative impact of an adverse £25m swing in unrealised forex. However, once income mainly accrued by dividends from overseas subsidiary operations had been factored in, pre-tax profit climbed to £72.6m, marginally up from £72.4m. Net profit rose by 14.6% to £71.1m.
The results statement admitted that retail sales levels had fallen, even though wholesale shipments increased. This was primarily attributed to a reduction in the average selling price per bike, due to several reasons. The appreciation of sterling versus other currencies had reduced the sterling value of Triumph’s foreign currency revenues. And there had also been a significant economic downturn in China, that had knocked sales volume and reduced selling prices in that region.
In addition, though, the highly successful launch of the Speed 400 and Scrambler 400X during the year created a new entry point in the market for Triumph, which also contributed to reducing the average selling price per bike.
Particularly interesting was an assessment of climate-related risks possibly impinging on Triumph’s business in the statement – summed up as restrictions from government policies worldwide and an inability to maintain technological advances to produce suitable electric motorcycles.
The brand’s response was cheerfully forthright: “We recognise that in November 2020 the UK government announced that, by 2030, the sales of new petrol and diesel cars with internal combustion engines would be banned in the UK. Thus far, the motorcycle industry has been sheltered from such legislation both here in the UK and around the rest of the world. And there is nothing to suggest that any legislation will be introduced for the motorcycle industry any time soon. Therefore, at present, both risks are deemed to be unlikely to transpire, as we have not identified any potential triggers.”