A recognition that trading conditions for the motorcycle industry remain challenging, amid global economic uncertainty with rising inflation and interest rates around the world, didn’t stop Triumph Motorcycles from delivering solid results in its full financial year to 30 June 2023.
Changing product mix meant total annual revenue from motorcycles, parts and accessories was slightly reduced, 1.1% down to £703.3m. Turnover in the UK grew by 6% to £83.9m, while the rest of Europe declined marginally by 1.2% to £288.7m. North America was a muscular 25.7% up to £183m. Taken together, markets elsewhere in the world fell by 24% to £147.7m.
But overall cost of sales also dropped by 5.3% to £600.1m, helping to almost treble operating profit to £39.7m. Operating margin rose from 2% to 5.6%. Once substantial income from shares in group undertakings, interest receivable and payable, etc, had been factored in, pre-tax profit climbed by 38.1% to £72.4m. Net profit stacked on 24.8% to £62m.
Wholesale motorcycle shipments during this 12-month period were essentially static, rising by just 0.2% to 88,607 units. Some 89.5% of these were sold in overseas countries, 5% up on the previous year.
Developments in Triumph’s current financial year to 30 June 2024 include introduction of an off-road product portfolio in the motocross and enduro segments, as well as closer collaboration with its OSET Bikes junior electric off-roader group subsidiary.
A non-equity partnership with India’s Bajaj Auto will see Bajaj building a new range of more accessible mid-capacity bikes too, sold through Triumph dealers. Bajaj will also become key distributor for Triumph products in the Indian market.