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PIERER FEELS THE PAIN

The usual litany of supply-chain disruption and component shortages had a noticeable impact on group performance at KTM, Husqvarna and GasGas parent Pierer Mobility in the first half of 2022. BDN financial editor Roger Willis reports.

Although overall revenue in the period was 7.1% up to £991.2m, good news stopped there. Operating profit sank by 9.6% to £79.7m. Operating margin fell from 9.5% to 8%. Net profit was 12.9% down to £58.6m.

Net debt had almost doubled since the beginning of this year, rising to £328.9m. But much of that would have been a seasonal rather than distress feature. Return on capital employed slid from 17.4% to 15.3%. And in the rolling year to 30 June, Pierer’s share price has declined by 20.6%.

Global motorcycle sales volume dropped by 7.2% to 163,344 machines. Lack of parts and supply-chain issues were particularly apparent in Europe and India. European sales were 15% down to 61,435, while Indian volume plunged by 40.3% to just 18,251. However, North American dealers sold 44,689 bikes, an impressive 47% increase. A lot of these would have been motocross and enduro models, less dependent on the availability of complex electronics.

Total worldwide motorcycle production in Austria, China, India and Spain was 0.8% in arrears at 169,991. Within that tally, Pierer’s main plant on home turf in Mattighofen boasted a 6.7% production increase to 91,019.

On a brighter note, Pierer Mobility Group is anticipating an improved ability to meet demand in the second half of 2022, despite ongoing supply-chain challenges and widespread deleterious economic forecasts. “This will strengthen presence in principal markets and gain market share in the relevant premium motorcycle segments,” the company says. It has, therefore, raised annual revenue growth expectations from a previous estimated range of 6-10% to 10-15%.

€-£ currency translation at forex rates applicable on 31 August.   

 

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