EQS-Adhoc: PIERER Mobility AG: Strong sales and revenue performance in the first half year 2023

2023-08-29 04:59:34

EQS-Ad-hoc: PIERER Mobility AG / Key word(s): Half Year Results
PIERER Mobility AG: Strong sales and revenue performance in the first half
year 2023

29-Aug-2023 / 06:58 CET/CEST
Disclosure of an inside information acc. to Article 17 MAR of the
Regulation (EU) No 596/2014, transmitted by EQS News – a service of EQS
Group AG.
The issuer is solely responsible for the content of this announcement.

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Ad hoc announcement pursuant to article 17 Regulation (EU) No 596/2014
(MAR)

Ad hoc announcement pursuant to article 53 LR

Wels, 29 August 2023 

 

PIERER Mobility AG: Strong sales and revenue performance in the first half
year 2023

• Revenue: € 1,387.6 million (+20,2% vs H1 2022)
• EBIT: € 96.9 million (+4,3% vs H1 2022)
• Sales: 190,293 motorcycles (+16,5% vs H1 2022)
• Sales: 71,401 e-bicycles & bicycles (+38,9% vs H1 2022)
• Headcount increase by 658 (+11,6%) employees to now 6,314 employees
• Guidance – positive outlook for 2023 confirmed

 

Sales, revenue and earnings development in the first half of 2023

In the first half of 2023, the PIERER Mobility Group increased the group
revenue by 20.2 % to a new record value of € 1,387.6 million (previous
year: € 1,154.1 million), with the motorcycle segment (+19 %) and also the
bicycle segment (+37 %) realising significant sales increases. Group-wide,
regarding 59 % of the turnover was generated in Europe, 28 % in North America
incl. Mexico and 13 % in the rest of the world.

The operating result (EBIT) of € 96.9 million in the first half of 2023 is
above the previous year’s figure of € 92.8 million. The very strong
operating result performance in the motorcycle segment (+16.6%)
compensates for the negative deviation in the bicycle segment. The tight
inventory situation at bicycle dealers increasingly led to discounts,
which had a negative impact on the group EBIT. The bicycle market as a
whole is characterized by major changes. The consolidation that has
already begun and is expected will have profound effects on the entire
bicycle industry.

The operating result before depreciation and amortisation (EBITDA) of €
178.9 million is also above the previous year’s figure of € 162.3 million.
The EBIT margin in the first half of 2023 is 7.0 %, the EBITDA margin is
12.9 %.

With 190,293 motorcycles sold in the first half of 2023 (previous year:
163,334), the motorcycle segment achieved a sales volume increase of 16.5
%. The bicycle segment also achieved sales volume growth of around 39 %,
selling 71,401 e-bicycles & bicycles (previous year: 51,417). The increase
in units sold in both segments was particularly strong in Europe. Here,
sales to dealers were 76,767 motorcycles (+25%) and 59,212 bicycles
(+40%). Almost 60% of the motorcycles were sold in markets outside Europe,
predominantly in North America with 50,472 units (+13%) and in India with
33,029 units with a strong increase of 81% compared to the previous year.
Declining growth rates were recorded in the markets of Latin America, Asia
and Africa. In the bicycle segment, the DACH region continues to be the
largest sales market with around 60% of total sales. In addition to
Europe, growth in the bicycle segment was particularly pleasing in North
America, where 9,184 units were sold in the first half of 2023, which
corresponds to an increase of 33% compared to the same period of the
previous year.

In addition, the PIERER Mobility Group was able to further increase market
shares with its motorcycle brands KTM, Husqvarna and GASGAS in the global
motorcycle markets of Europe, North America, Australia and India, which
are particularly important for the group, compared to the same period last
year.

 

Increasing market share in key motorcycle markets

Despite the overall economic environment, which poses challenges for the
motorcycle market, the market development in the first half of 2023 allows
for a positive outlook for the remaining months of the 2023 financial
year. The group was able to either maintain or increase existing market
shares in the global markets.

In Europe, the motorcycle market recorded a significant volume increase of
11.1 % compared to the first half of 2022, reaching a volume of around
470,000 newly registered motorcycles. The main drivers of this development
can be seen in the German (+15 %), Italian (+14 %) and Spanish (+15 %)
markets as well as KTM’s home country Austria (+14 %). In addition, the
PIERER Mobility Group with its motorcycle brands KTM, Husqvarna and GASGAS
was able to surpass this development with an increase of 20% in
registrations and achieved a market share of 10.2% (half-year 2022: 9.9%).

In North America, one of the most important sales markets for the PIERER
Mobility Group, the overall high market volume from the first half of 2022
of around 290,000 newly registered motorcycles was maintained in the first
half of 2023. At the same time, the KTM Group was able to expand its
market position with a share of 12.3 % in the USA and 16.9 % in the
Canadian market (both markets together: 12.9%; first half of 2022
together: 10.6%).

The Australian and New Zealand motorcycle market shows a slight decline of
4% in the total market for the first half of 2023 compared to the same
period last year. Nevertheless, the market shares of the KTM, Husqvarna
and GASGAS brands are developing positively and now stand at 19.7% (Half
Year 2022: 19.0%).

Both the overall market (+9%) and the Indian motorcycle market relevant
for KTM (S2/S3 segment, +32%) are clearly on the upswing in a direct
year-on-year comparison. The S2/S3 market accounts for almost 600,000
units in the first half of 2023. In this context, the strategic partner
Bajaj sold more than 32,000 motorcycles of the KTM and Husqvarna brands in
India, which corresponds to a market share of 5.7% (+1.6 percentage points
compared to the first half of 2022).

 

New Mobility market

PIERER Mobility AG anticipates a decline in the overall market in 2023 and
a challenging year in 2024. The expected market consolidation will
accelerate significantly due to the current situation and will have a
lasting impact on the competitive environment. However, contrary to the
market development, revenue and volume growth is expected even in this
tense environment. The bicycle segment, especially in e-bicycles,
continues to be seen as an important strategic product and market area for
PIERER Mobility AG. The strategic target of € 500 million turnover is
still valid, but will probably only be reached two years later compared to
the original target of 2025.

 

Headcount increase by 658 employees to now 6,314 employees

As of 30 June 2023, the PIERER Mobility Group had 6,314 employees, of
which 5,146 were in Austria (81.5 %). Around 1,400 employees work in
research & development.

Since the beginning of the year, the number of employees has increased by
226. Compared to 30 June 2022, the PIERER Mobility Group was even able to
increase its headcount by 658 people and continues to look for new
employees in various areas, especially in metalworking professions. In the
course of the apprenticeship offensive, around 80 more apprentices will
start their training in the new year. In total, the group is currently
training over 200 apprentices.

 

KTM and CFMOTO double production capacity from 50,000 to 100,000 vehicles

The cooperation with CFMOTO was further intensified in the first half of
2023. On the one hand, activities in the newly founded CFMOTO subsidiaries
were started in February 2023, which will take over the distribution of
CFMOTO motorbikes in Europe, especially in Germany, Austria, Switzerland,
Spain and Great Britain. On the other hand, the long-standing cooperation
in industrialization projects in the newly founded joint venture in China
was further strengthened by the series production of the KTM mid-range
models (790 Duke and 790 Adventure). The strategic cooperation now also
includes model planning and the joint development of engines and vehicles.
In addition, KTM and CFMOTO have decided to increase the production
capacity of their joint ventures from 50,000 to 100,000 vehicles. As a
sign of the strengthened cooperation, CFMOTO has also increased its share
in PIERER Mobility AG to 2.0 %.

 

Guidance – positive outlook for 2023 confirmed

In the second half of 2023, the PIERER Mobility Group continues to focus
on growth in its core areas, both motorcycles and (e-)bicycles. Despite
the still noticeable challenges, especially in the bicycle market, the
Executive Board confirms the outlook for the 2023 financial year and
continues to expect revenue growth between 6 and 10 % with an EBIT margin
of 8 to 10 %.

 

Group figures H1 2023 of PIERER Mobility AG (consolidated)
 

KEY FINANCIAL PERFORMANCE INDICATORS:      
         
Earnings figures   H1 2022 H1 2023 Chg.
Revenue EURm 1,154.1 1,387.6 20.2%
EBITDA EURm 162.3 178.9 10.3%
EBITDA margin   14.1% 12.9%  
EBIT EURm 92.8 96.9 4.3%
EBIT margin   8.0% 7.0%  
         
         
 
         
OTHER FINANCIAL FIGURES:
         
Earnings and cash flow ratios   H1 2022 H1 2023 Chg.
Earnings following taxes EURm 68.2 53.0 -22.%
Free cash flow EURm -146.2 -96.0 34.3%
         
Balance sheet ratios   31.12.2022 30.06.2023 Chg.
Balance sheet total EURm 2,550.6 2,675.5 4.9%
Equity EURm 914.4 889.9 -2.7%
Equity ratio   35.8% 33.3%  
Net debt EURm 256.5 442.9 72.6%
Gearing   28.1% 49.8%  
         
Others   H1 2022 H1 2023 Chg.
Capex^1) EURm 102.5 133.1 29.8%
Employees (headcount)   5,656  6,314 11.6%

^1) excluding lease additions (IFRS 16) in the amount of EURm 18.6
(previous year: EURm 10,2)

 

The half-year report for 2023 is now available on the company website at
at [1] https://www.pierermobility.com/en/investor-relations/reports. The
current investor presentation can be found at
[2] https://www.pierermobility.com/en/investor-relations/presentation.

 

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 and FELT Bicycles 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.

 

Legal Disclaimer

THIS ANNOUNCEMENT DOES NEITHER CONSTITUTE AN OFFER TO SELL NOR AN
/INVITATION TO SUBMIT A PROPOSAL FOR THE ACQUISITION OF SECURITIES OF
PIERER MOBILITY AG. THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR
DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, INTO OR WITHIN
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Contact:

Investor Relations
Melinda Busáné Bellér
Tel: [phone] – 70
Email: [e-mail]
Website: [3] www.pierermobility.com

ISIN: AT0000KTMI02; Swiss Valor Number (Switzerland): 41860974; Ticker
Symbol: PMAG; Bloomberg: PMAG SE; Archyde.com: PMAG.S

End of Inside Information

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29-Aug-2023 CET/CEST News transmitted by EQS Group AG. www.eqs.com

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Language: English
Company: PIERER Mobility AG
Edisonstrasse 1
4600 Wels
Austria
Phone: [phone]
E-mail: [e-mail]
Internet: www.pierermobility.com
ISIN: AT0000KTMI02
WKN: A2JKHY
Listed: SIX, Vienna Stock Exchange
EQS News ID: 1713343

Valorennummer (Schweiz): 41860974 Wertpapierkürzel: PMAG, Bloomberg: PMAG
SE Archyde.com: PMAG.S

 
End of Announcement EQS News Service

1713343  29-Aug-2023 CET/CEST

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