Trying desperately to cover the cracks in yet another struggling big-league European biker enterprise, Piaggio managing director and chief executive Michele Colaninno has his work cut out. BDN financial editor Roger Willis reports.
2024 full-year Piaggio Group consolidated sales revenue fell by 14.3% to £1.416bn. Turnover from the EMEA regions (predominantly Europe) and the Americas was 11.8% down, while Asia Pacific declined by 32.4% and India by 3.9%.
Annual operating profit posted a 18.2% retreat to £122.9m and operating margin sank from 9.1% to 8.7%. Pre-tax profit suffered a 28.1% dive to £81.4m. Finally, net profit finished 26.2% in arrears at £55.9m.
Group net debt at 31 December 2024, had risen by 23% to £444.3m, versus the position 12 months earlier. This “temporary increase” was shrugged off as reflecting a reduction in trade payables and the trend in capital expenditure. The latter had grown by 12.2% to £152.2m during the year.
Piaggio’s 2024 global powered two-wheeler unit sales volume fell by 17.5% to 359,000 scooters and motorcycles. Associated revenue generated was 15.3% down to £1.083bn, including £127.6m from spares and accessories.
The largest PTW downturn at a geographical level was in the Asia-Pacific region, affected by a 30.8% fall in demand for premium products in China and Thailand. India achieved a 10.3% turnover improvement, largely thanks to introduction of a new Aprilia RS 457 model.
In the scooter segment generally, Piaggio claims to have recaptured leadership of the European market with a 21.4% share. And its share of the North American market reached 28.1%. As for motorcycles, the market apparently had a strong response to the aforementioned Aprilia RS 457, as well as Moto Guzzi Stelvio and V85 models.
The company also claimed that 2024 had been a year of outstanding results in motorcycle racing for Aprilia, as its Tuareg model dominated the season, winning all the competitions in which it took part. These included the Transanatolia Rally in Turkey and the Italian Motorally Championship. And riding an Aprilia RS 660, Alessandro Di Mario had won the MotoAmerica Twins Cup.
To conclude, why should I deny an Italian Captain of Industry the right to embarrass himself, something which Michele Colaninno seems to cherish?
His commentary on these results began by hailing “excellent margins in 2024 thanks to careful management of productivity in a highly anomalous economic situation.” Sorry, but the notion of excellence doesn’t really fit with falling revenue, operating profit, pre-tax profit and net profit, set alongside rising debt.
And then he eulogised harsh reality. “The downturn in revenues is the direct consequence of the correct strategy employed by dealers all over the world to reduce their inventories,” opined Colaninno. “This enabled us to maintain the profitability of the distribution network and simultaneously prepare for 2025 from a pragmatic perspective. A reversal in global economic trends that would generate a solid recovery in consumer spending has not yet emerged!” That’s probably enough for those of us who don’t want to jump in the deep end wearing concrete boots!
€-£ currency translation at forex rates applicable on 4 March