According to latest annual results, Triumph Motorcycles sank even deeper into the red as its final-quarter peak sales season in an unusual accounting year coincided with lockdowns during the initial Covid-19 pandemic wave. BDN financial editor Roger Willis reports.
In the 12 months to 30 June 2020, Triumph’s global revenue fell by 7.4% to £399.1m. UK turnover was 17.3% down at £58.9m. The rest of Europe yielded £183.9m, a 9.5% reduction. North America actually improved, 5.8% up to £73.5m. But sales elsewhere in the world declined by 4.9% to £82.8m.
Apart from the pandemic’s malign influence, operating profitability was also impacted by a negative foreign exchange translation burden of £11m. Overall operating loss was £44.2m, worsening from a £23m loss in the previous year. Operating margin deteriorated from minus 5.3% to minus 11.1%.
The bottom line was a net loss extending to £35.8m, following a £17.4m loss to June 2019. Underlining the seriousness of this situation, Triumph parent Bloor Holdings was obliged to recapitalise the business with injection of an additional £50m investment in July 2020.
Worldwide retail sales volume dropped by 13.4% to 48,993 motorcycles. Some 85.3% of them were sold overseas, versus 83.5% a year earlier. The company said all of its main markets in the US, UK, France, Italy and Spain had been “heavily affected” by the pandemic.