Ducati chief executive Claudio Domenicali basked in glory, after his German proprietor Volkswagen Group released reasonable annual performance details for the brand in 2023. But a 154-page report and 31-page supplement from Brand Group Progressive, the alternative moniker for a luxury corporate medley now encompassing Audi leadership plus Bentley, Lamborghini and Ducati, took a more circumspect view of some pertinent figures.
To be exact, Ducati’s full-year revenue was 2.2% down to £910.4m, while operating profit increased by a fairly modest 2.3% to £95.7m. Operating margin grew very slightly, from 10% to 10.5%. However, production during 2023 had plummeted by 21.4% to just 55,226 motorcycles. Incidentally, 45,621 of these were made in Italy at Bologna. A further 7646 were assembled in Thailand, 1337 in Brazil and 622 in Argentina.
In the previous year, Ducati had made 70,295 machines, a phenomenon described by Brand Group Progressive bean counters based at Ingolstadt in Upper Bavaria as “due to positive pandemic-related recovery effects”. Only 61,562 bikes were sold to customers in 2022, though, therefore a sharp reduction was required to “optimise inventories”. The knock-on effect was 2023’s 5.4% retail sales decline to 58,224.
Ploughing through those output cuts, Scramblers got off lightest with shipments 8.8% lower at 8593. Diavel, Monster and Streetfighter models were slashed by 25.7% to 16,969. Hypermotard, Desert X and Multistrada tackle took a 27.4% dive to 18,749. Availability of premium Supersport and Panigale models sank by 10.8% to 10,915.
Deliveries to customers worldwide, through lack of stock or demand, or both, were spread in a vaguely different pattern. Scramblers dropped 3.2% to 8226. Diavel, Monster and Streetfighter sales were 5.4% down to 18,718. Some 5.1% fewer Hypermotard, Desert X and Multistrada purchases, amounting to 20,370 bikes, left showrooms. And the sporting sector copped a 7.6% loss on 10,910.
Ducati has always been shy about detailing global retail destinations for its wares and this year was no exception. Europe took the credit for 57% of sales, up from 52%. The USA flatlined on 14%. China, including Hong Kong, was the biggest loser, down from 8% to 5% — suggesting the brand is yet another victim of Asia’s economic grief and the geo-political challenges other manufacturers are constantly bleating about. A further 25% went to anonymous regions, falling from 26% in the previous year.
Among the revenue to unit sales growth streaks of fellow VW Brand Group Progressive members, there were only two losers. Besides Ducati, Bentley was the other, dropping by 13.2% to £2.511bn, with retail volume of its trademark limousines 10.6% down to 13,560. (To be fair, Bentley’s operating profit also slumped by 16.7% to £503.2m — still five times bigger than Ducati’s effort.)
Obviously eager to offer a helping hand, Ducati presented the Diavel for Bentley, a 500-strong and £58,000 a pop limited-edition motorcycle fleet inspired by the Bentley Batur grand touring motor car. You can imagine Bentley-owning Brexiteer toffs like Jacob Rees-Mogg tossing aside their top hats and tails to get a leg over one of these Italian stallions. Or perhaps founding father Walter Owen Bentley turning in his grave.
Of course, Ducati thought otherwise, eulogising the bike as: “A collaboration that only a motorcycle manufacturer like Ducati can propose and which unites the two brands in an affinity of vision made of technology and style.” Please pass the sick bag.
€-£ currency translation at forex rates applicable on 19 March