EQS-News: PIERER Mobility AG / Key word(s): Half Year Results
Wels, August 30, 2022
PIERER Mobility AG: Strong performance in the first half of 2022
Development of sales and revenue in H1 2022 – Strong performance despite tougher supply chain issues
In the first half of 2022, the PIERER Mobility Group increased group revenue by 7.1% to € 1,154.1 million (previous year: € 1,078.0 million). The EBIT of € 92.8 million in the reporting period was below the figure for the previous year of € 102.6 million.
Against the backdrop of difficulties in the supply chain affecting both segments and the associated supply bottlenecks, the Motorcycle Division of PIERER Mobility AG sold a total of 163,334 KTM, Husqvarna and GASGAS motorcycles in the first six months of the financial year (previous year: 176,045). Including the models sold by our partner Bajaj, unit sales in the first half of 2022 are therefore just 7.2% below the previous year. In the Bicycle Division, a total of 51,417 units were sold (-3.7%). Of these, 34,829 were e-bicycles (previous year: 39,601) and 16,588 were conventional bicycles (previous year: 13,777) of the Husqvarna, GASGAS, FELT and R Raymon brands.
In terms of unit sales, it was therefore not possible to fully meet demand in either segment in the first half of the year. Due to backlogs of parts – especially in the area of electronics – motorcycles and also e-bicycles could not be fully assembled. These vehicles were therefore delayed in going on sale until the start of the second half of the year. Despite these tougher ongoing supply chain issues, a total of 198,163 Powered Two-Wheelers (PTWs - motorcycles and e-bicycles) were sold worldwide (-8.1% year-on-year).
Growth was particularly strong in North America, where 44,689 motorcycles were sold. This represented an increase of 47% compared to the first half of 2021. In Europe, supply chain issues were particularly acute for PIERER Mobility AG, with 61,435 motorcycles sold in the first half of the year (-15% year-on-year). In Australia/New Zealand, 6,707 motorcycles were sold. In India, too, the lack of availability of parts led to a decline in the number of motorcycles sold to 18,251 units (previous year: 30,561). Although the entire motorcycle market was affected by supply chain issues and recorded slightly declining rates of growth in the first half of 2022, the PIERER Mobility Group was able to largely stabilize its market shares in the global markets.
Development of market shares in the key markets
The European motorcycle market recorded almost 400,000 registrations in the first six months of 2022, down slightly on the first half of 2021 (-3%). The Netherlands (+20%), the United Kingdom (+13%) and Italy (+6%) showed positive growth rates, while in Germany demand declined slightly by -7% compared to the first half of 2021. In the European market, registrations of the three KTM, Husqvarna Motorcycles and GASGAS brands reached a combined market share of 9.9%. This represents a decrease of 1.8% compared to December 31, 2021.
In the US market, the largest single market for motorcycles for PIERER Mobility, the trend was similar to Europe, with a slight decrease of -4% in registrations in the first half of 2022 totaling 239,000 motorcycle registrations. In North America (USA, Canada), the current market share of the Group with its three motorcycle brands is 10.6% (end of 2021: USA: 11.3%, Canada: 14.1 %).
In addition to Europe and the USA, the Australian/New Zealand market (Oceania) also recorded a slight decrease of 4% in the first half of 2022 compared to the same period last year, with approximately 35,000 motorcycles registered, with PIERER Mobility's three brands stabilizing their market share at 19.0% (December 31, 2021: 19.7%).
The key Indian motorcycle market recovered during 2022 with a 5% year-on-year increase (total registrations as of June 30, 2022: 440,000 motorcycles), but at the same time there has been a decline in the market share of KTM and Husqvarna Motorcycles, the two brands represented in India, to 4% (December 31, 2021: 7%).
As products increasingly become available from the second half of the year, the PIERER Mobility Group will strengthen its market presence in its target markets and expand its market shares in the relevant premium motorcycle segments.
For the Bicycle Division, the most important sales markets are currently in Europe (Germany, Austria, France, Italy and Switzerland). In the period under review, most sales were made in the DACH region (68%) followed by the rest of Europe (15%) and other countries worldwide (17%), in particular in North America.
Headcount increased by 768 which is now 5,656 employees
As of June 30, 2022, the PIERER Mobility Group employed 5,656 people, with around 21% of them working in research & development. Compared to the first half of 2021, the Group was therefore able to increase its headcount by 768 people. Most of the new appointments were in production. When it comes to recruiting employees, there continues to be an increased focus on the various areas of production. The Group operates several sites in the central region of Upper Austria. As a modern employer, PIERER Mobility is taking measures to make the environment attractive to its workforce, such as new flexible shift models that meet the individual needs of employees. As part of an apprentice drive, around 70 more apprentices will begin their training this year. In total, the group is currently training around 200 apprentices.
New subsidiary in Taiwan
To address the current supply chain issues in the bicycle sector, in June 2022 PIERER E-Bikes GmbH established a subsidiary in Taiwan, PIERER E-Bikes Asia Ltd. It will provide significant support to the PIERER E-Bikes Group in its supply chain management and therefore reduce the procurement risk by providing direct access to the Asian market.
Guidance for 2022 increased
The Management Board has increased the guidance for 2022 and expects the 2022 financial year to deliver revenue growth of between 10% and 15% (previously forecasted revenue growth for the 2022 financial year: 6 to 10%). The EBIT margin of 8% to 10% and an EBITDA margin of between 15% and 17% are confirmed.
1) excluding lease additions (IFRS 16) in the amount of EURm 10.2 (previous year: EURm 6.8)
About the Group
PIERER Mobility AG is the holding company of Europe’s leading manufacturer of powered two-wheelers, producing a full range of premium brands including KTM, GASGAS and Husqvarna Motorcycles. With key strengths in innovation, PIERER Mobility is a pioneering technology leader in two-wheeled e-mobility through its motorcycle brands. Its Husqvarna E-Bicycles, GASGAS Bicycles, FELT Bicycles and R Raymon complement the two-wheeler segment. Rounding out the premium brand offering are high-performance components produced under the WP brand and KTM X-BOW high-end sports cars. In the 2021 financial year, PIERER Mobility AG achieved record sales of € 2.1 billion and EBIT of € 193.5 million, while employing more than 5,000 people.
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Melinda Busáné Bellér,
Tel: +43 1 533 1 433 - 70
ISIN: AT0000KTMI02; Swiss Valor Number (Switzerland): 41860974; Ticker Symbol: PMAG; Bloomberg: PMAG SE, PMAG GY; Reuters: PMAG.S
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