EQS-News: PIERER Mobility confirms revenues and earnings in 2023

EQS-News: PIERER Mobility AG / Key word(s): Annual Results
PIERER Mobility confirms revenues and earnings in 2023

27.03.2024 / 07:00 CET/CEST
The issuer is solely responsible for the content of this announcement.

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Corporate News

Ad hoc announcement pursuant to article 53 LR           

 

Wels, March 27, 2024

 

PIERER Mobility confirms revenues and earnings in 2023

• Revenues: EUR 2,661 million (+9.2 %)
• EBIT: EUR 160 million (previous year: EUR 235 million)
• EBITDA: EUR 323.5 million (-15.1 %)
• Unit sales: motorcycles 381,555 (+1.6 %)
• Unit sales: bicycles 157,358 (+33 %)
• Employees: 6,184 (+1.6 %)
• 2024 outlook

 

Revenues and earnings in the 2023 financial year

The PIERER Mobility Group increased group revenue by 9.2 % to € 2,661.2
million (previous year: € 2,437.2 million) in the 2023 financial year
despite difficult economic conditions and upheaval in the bicycle
industry. Earnings before interest and taxes (EBIT) fell by around 32 % to
€ 160.0 million (previous year: € 235.3 million). This corresponds to an
EBIT margin of 6.0 %. At € 323.5 million, EBITDA was around 15 % below the
previous year’s figure. The EBITDA margin is 12.2 %.

As already reported, the Executive Board, in agreement with the main
shareholder Pierer Bajaj AG, will propose to the Supervisory Board and the
Annual General Meeting a dividend of € 0.50 per dividend-bearing share for
the 2023 financial year on the basis of the result achieved.

In the 2023 financial year, € 284.0 million was invested in further
growth, of which around € 195.1 million was invested in product
development & tools, € 88.9 million in plant & infrastructure. The
research budget was 9.2 % of revenue in the year under review. As in
previous years, significant investments were made mainly in development
projects and the purchase of tools and equipment in 2023. As a result of
measures such as supporting the dealer structure and stabilizing the
financial situation of some critical suppliers, the negative free cash
flow, which amounted to € -413.0 million (previous year: € -2.8 million)
in 2023, was deliberately accepted. Thanks to the strong equity base and
long-term financing, sufficient liquidity reserves are available on a
sustainable basis. The equity ratio as at the reporting date was 30.8%.

As of December 31, 2023, the PIERER Mobility Group had a total of 6,184
employees (previous year: 6,088), thereof about 5,000 in Austria.
Approximately 1,300 employees or around 21 % of the workforce are engaged
in research & development. 2023, around € 3.9 million was invested in
staff training and education. As of the balance sheet date, about 220
apprentices were employed and trained in 25 different professions.

 

Motorcycles unit sales: 381,555 (+2%)

The 2023 financial year was very much defined by a major model rollout
with a total of 72 new and revised models from the three core brands: With
280,206 KTM motorcycles sold, 67,462 Husqvarna motorcycles sold and 29,532
GASGAS motorcycles sold in the 2023 financial year, plus the motorcycles
sold by MV Agusta (1,852) and CFMOTO (2,503), PIERER Mobility achieved
sales of 381,555 units (2022: 375,492 units). The motorcycle division thus
achieved a 1.6 % increase in unit sales. In the European sales regions,
unit sales were 140,214 units (+15%). At 241,341 units, two thirds of the
motorcycles were sold in markets outside Europe: In India, sales rose
particularly sharply (+29 %) with 66,426 motorcycles sold. Despite a
slight decline in North America (-7.7 %), the subsidiary there managed to
sell 101,277 units. While sales fell in South America with 27,671 units
sold (-26.4 %) and in Asia with 23,129 motorcycles sold (-27.3 %), sales
of 19,648 units in Australia were slightly above the previous year’s level
(previous year: 19,478 units) (+1 %).

Despite the difficult global economic conditions, motorcycle registrations
in the core markets of Europe rose very strongly at a rate of +11 % and
also displayed a significantly positive trend in North America (USA &
Canada) at +4 %. In 2023, the market share of all three brands (KTM,
Husqvarna, GASGAS) was therefore around 10.6 % in Europe and 12.6 % in
North America. The Australian motorcycle market (including New Zealand)
stagnated slightly with a 3 % decline in newly registered motorcycles.
Nevertheless, the total market share of the three brands increased to 21 %
overall. By contrast, as in the previous year, the relevant Indian
motorcycle market is seeing a noticeable upswing (+22 %). Bajaj sold
around 66,000 KTM and Husqvarna motorcycles in India, resulting in a
market share of 5.3 %.

 

Bicycles unit sales: 157,358 (+33 %)

In the bicycle division, 157,358 bicycles were sold (previous year:
118,465), thereof 100,640 were e-bicycles (previous year: 74,479) in the
2023 financial year. Around 87 % of sales were in Europe and here in
particular in the DACH region. A further 10 % were in the North American
sales region and the remaining sales (around 3 %) were in Asia, South
America and Australia.

 

Strategic projects

 

CFMOTO

The strategic cooperation witch CFMOTO was stepped up in the 2023
financial year. On the one hand, the subsidiary CFMOTO Motorcycles
Distribution GmbH took over the distribution of CFMOTO motorcycles in five
European countries in February 2023. On the other, the long-standing
activities in relation to industrialization projects in the established
joint venture with CFMOTO were promoted and the series production of
mid-range KTM models was expanded further. In addition, production
capacity will be doubled.

 

Takeover of majority stake in MV Agusta S.p.A.

An important milestone for the company was the acquisition of a majority
stake in the Italian premium motorcycle manufacturer MV Agusta S.p.A., in
which KTM AG acquired a 25.1 % stake back in November 2023. On March 15,
2024, the existing call option to acquire a majority stake in MV Agusta
Motor S.p.A. was exercised early by KTM AG and the stake increased to 50.1
%.

 

2024 outlook

For the 2024 financial year, the Executive Board expects that the global
economic environment will continue to be difficult, driven not least by
ongoing high rates of inflation and wage and salary trends, with
far-reaching effects on pricing worldwide. The PIERER Mobility Group will
use 2024 as a year of consolidation to strengthen its core business as a
result of the economic policy that is damaging the location and having a
very negative impact on global competitiveness. The cost reduction
measures already initiated in the 2023 financial year will be continued
intensively and supported by further relocations of production and
development capacities to the joint venture partners in India and China.
The total cost savings will amount to tens of millions in the 2024
financial year.

 

Key figures 2023 of PIERER Mobility Group (consolidated)

 

MOST SIGNIFICANT FINANCIAL PERFORMANCE INDICATORS:      
         
Earnings figures   2022 2023 Chg.
Revenues EURm 2,437.2 2,661.2 9.2%
EBITDA EURm 381.1 323.5 -15.1%
EBITDA margin   15.6% 12.2%  
EBIT EURm 235.3 160.0 -32.0%
EBIT margin   9.7% 6.0%  
         
         

         
FURTHER FINANCIAL KEY FIGURES:
         
Earnings and cash flow indicators   2022 2023 Chg.
Earnings after taxes EURm 170.6 76.4 -55.2%
Free Cash Flow EURm -2.8 -413.0 <100%
         
Balance sheet figures   2022 2023 Chg.
Balance sheet total EURm 2,550.6 2,952.9 15.8%
Equity EURm 914.4 909.3 -0.6%
Equity ratio   35.8% 30.8%  
Net debt EURm 256.5 775.9 >100%
Gearing   28.1% 85.3%  
         
Other   2022 2023 Chg.
Capex^1^) EURm 267.5 284.0 6.1%
Employees Headcount 6,088 6,184 1.6%

^ 

^1) Excluding lease additions (IFRS 16) in the amount of mEUR 32.5
(previous year: mEUR 25.9)

 

Der Annual Financial Report and the Sustainability Report for the 2023
financial year will be published on March 27, 2024, and will be available
on the company’s website www.pierermobility.com under the following links

[1] https://www.pierermobility.com/en/investor-relations/publications

[2] https://www.pierermobility.com/en/sustainability/publications

 

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, Husqvarna and MV Agusta Motorcycles. With its
innovative strength, PIERER Mobility is a pioneering technology leader in
two-wheeled e-mobility through its motorcycle brands. Husqvarna and GASGAS
E-Bicycles complement the two-wheeler range. The premium brand range also
includes high-performance components under the WP brand and special KTM
X-BOW high-performance sports cars.

 

Legal disclaimer

THIS ANNOUNCEMENT DOES NOT CONSTITUTE AN OFFER OF SECURITIES FOR SALE OR A
SOLICITATION OF AN OFFER TO PURCHASE SECURITIES OF PIERER MOBILITY AG. IT
IS NOT FOR DISTRIBUTION, TRANSMISSION OR PUBLICATION, DIRECTLY OR
INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES, AUSTRALIA,
CANADA, JAPAN OR SOUTH AFRICA OR ANY OTHER JURISDICTION IN WHICH THE
DISTRIBUTION OF THIS ANNOUNCEMENT WOULD BE UNLAWFUL.

 

 

Contact:

Investor Relations

Melinda Busáné Bellér

Tel: +43 (0) 1 533 1 433 – 70

Email: ir@pierermobility.com

Website: [3] www.pierermobility.com

 

ISIN: AT0000KTMI02; Swiss Valor Number (Switzerland): 41860974; Ticker
Symbol: PKTM; Bloomberg: PKTM SW, PKTM AV; Reuters: PKTM.S; PKTM.VI

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27.03.2024 CET/CEST This Corporate News was distributed by EQS Group AG.
www.eqs.com

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Language: English
Company: PIERER Mobility AG
Edisonstrasse 1
4600 Wels
Austria
Phone: +43 (0) 7242 69 402
E-mail: ir@pierermobility.com
Internet: www.pierermobility.com
ISIN: AT0000KTMI02
WKN: A2JKHY
Listed: SIX, Vienna Stock Exchange
EQS News ID: 1868021

Valorennummer (Schweiz): 41860974 Wertpapierkürzel: PKTM Bloomberg: PKTM
SW; PKTM AV Reuters: PKTM.S; PKTM.VI

 
End of News EQS News Service

1868021  27.03.2024 CET/CEST

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