Assailed by continuing economic downturns in many of its markets and adverse foreign currency exchange (forex) effects, Piaggio’s results for the nine months of its financial year to 30 September are a tale of woe characterised by falling unit sales, revenue and profit.
Revenue for the period was down by 14.1 per cent to £806.7m. Operating profit slumped by 25.5 per cent to £60.3m. Net profit dropped by 37.4 per cent to £23.5m. Piaggio says that, excluding forex negativity, revenue would have been £29m higher.
Piaggio’s European powered two-wheeler market continued to show the sharpest decline recorded since 2007, with aggregate volumes now 55 per cent lower than those of five years ago. From January to September, it experienced an overall downturn of 13.1 per cent — with scooters declining by 17.8 per cent and motorcycles by 5.5 per cent. In particular, the company said it suffered an unprecedented drop in demand on the Italian domestic market. However, it still maintains leadership in Europe, with a total market share of 17.5 per cent and 26.3 per cent in scooters.
On a brighter note, global Vespa scooter shipments were up 21.3 per cent in nine months to 146,600 units. Some 33,200 of these were produced and sold in India, where Piaggio’s new scooter plant is now fully operational. It also made positive volume gains in Thailand, the Philippines and Indonesia, supplied from its scooter plant in Vietnam, although euro to rupee and dong forex problems diminished related revenue.
The Group also reported 7.7 per cent growth in North American sales, where it now has a 23 per cent scooter market share. Piaggio’s Moto Guzzi subsidiary was also a star turn, growing sales by 9.8 per cent to approximately 5900 units and bucking the trend in many developed motorcycle markets.
In total, Piaggio Group worldwide shipments to dealers were down by 9.5 per cent to 429,900 units (scooters and motorcycles, as well as three and four-wheeled light commercial vehicles).