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PIERER UNVEILS HALF-YEAR PRELIMINARY RESULTS

Although full audited figures are scheduled for the end of August, Pierer Mobility has rushed out details of its surprisingly bullish performance in the fraught first half of 2020. BDN financial editor Roger Willis reports.

The company’s various powered two-wheeler brands suffered a global 8.1% sales decline to 124,682 units. But within that, some 70,171 KTM, Husqvarna and GasGas motorcycles, plus 34,351 Husqvarna and R Raymon pedelecs, actually represented a 1.3% increase — despite the period being punctuated by a two-month Covid-19 lockdown.

The losses were incurred in India, where Pierer manufacturing partner Bajaj Auto saw Indian domestic sales of the KTM and Husqvarna machines it produces dive by 38% to 20,160.

However, owing to interrupted production, Pierer says group half-yearly revenue was 20.5% lower at £546.7m. Operating profit sank by 96.4% to £1.5m, marginally avoiding red ink. These numbers may be revised post-audit.

On a brighter note, the boom in worldwide PTW demand after easing of lockdowns, generally attributed to changing consumer behaviour in pursuit of individual rather than mass transport solutions, has particularly benefited the KTM and Husqvarna brands. According to Pierer, this is reflected in double-digit percentage registrations growth and market-share gains. And in order to cover rising demand with increased production capacity, Pierer has hired 170 additional employees at its Austrian plants since the beginning of June.

Given such a positive outlook, Pierer Mobility now expects turnover in the second half of 2020 to reach more than £730m, against £699m in the same period last year. Annual revenue should be about £1.28bn, falling from £1.39bn in 2019.

 

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