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SUZUKI: AN EARNER IN THE EAST

In the nine months to date of its current 2021/22 fiscal year, Suzuki’s motorcycle operations have achieved a remarkable turnaround. But this success has been almost entirely based on Asian markets. BDN financial editor Roger Willis reports.

Global motorcycle revenue grew by 26.3% to £1.182bn, against an equivalent period in the previous year. And it was 0.8% up on the parallel nine months of pre-pandemic 2019/2020. Associated operating profit reached £59m, escaping from a loss of £9m in 2020/2021 and break-even in 2019/2020

By far the largest source of turnover recovery came from Asia, climbing by 34% overall to £585m. India was stand-out single contributor, rising by 34.4% to £286m. Other South Asian and Far Eastern countries combined were responsible for a 33.6% increase to £299m. Notable emerging markets elsewhere put on 49.5% to £214m.

In the developed world, Japan added 12.8% to £108m. North America was also positive, improving by 19.2% to £136m. However, revenue from Europe was 4.8% down to £140m.

Total wholesale shipment volume rose by 8% to 1.206 million bikes but was still 10.3% lower than the April-December headcount in 2019. Asia led the field, stacking on 11.2% to 975,000. Within that, India was 16.2% up to 437,000, chased by China’s 9.4% gain to 315,000. The Philippines boasted a 20.8% increase to 117,000 and Pakistan leapt by 92.2% to 26,000.

In contrast, Europe and North America looked pathetic, both recording tallies of 22,000 machines and respective 29.1% and 40.8% declines. Having said that, model mix will have skewed volume versus revenue calculations.

Suzuki’s earnings statement said shipments were affected by production adjustments, due to shortage of components including semiconductors, as well as logistics disruption such as container shortages.

Yen-sterling currency translation at forex rates applicable on 7 February

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