PIERER Mobility AG
PIERER Mobility Group increased consolidated sales by 19.4% to a new record of EUR 2,437 million (previous year: EUR 2,042 million) in fiscal 2022 despite severe supply chain challenges .
Earnings (EBIT) improved by about 22% to EUR 235 million (previous year: EUR 193 million), representing an EBIT margin of 9.7%.
The operating result before depreciation and amortization (EBITDA) was EUR 381 million, approximately EUR 50 million higher than the previous year. EBITDA margin is up to 15.6 %.
As reported, the Board of Management, with the agreement of the main shareholder Pierer Bajaj AG, will propose to the Supervisory Board and the Annual General Meeting a dividend of EUR 2 per share as a dividend for the financial year. 2022 on the basis of the results achieved record, which will result in a doubling of the previous year’s dividend.
In fiscal year 2022, approximately EUR 268 million was invested in growth initiatives, of which approximately EUR 161 million was in product & tool development and EUR 62 million in plant & infrastructure.
One of the most significant investments in infrastructure (real estate, plant and equipment) in FY 2022 is the continued construction and completion of KTM North America’s new headquarters in Murrieta, California. . The company’s facility has been built on an area of approx. 14,000 m² and includes office and sports car buildings as well as storage areas. Total investment capital to build the building is about 53 million USD.
Due to consistently high levels of investment and rising working capital, free cash flow is slightly negative at EUR-3 million in 2022. Over the past three financial years, the team has generated an average free cash flow of 5, 6% of revenue, which is above the sustainability target range of 3 to 5% of revenue.
In the last financial year, the number of employees increased by 839 people. As of December 31, 2022, the PIERER Mobility Group has a total of 6,088 employees, of which about 5,000 are located in Austria. About 1,200 employees or 20% of the workforce are engaged in research and development.
Last year, around EUR 2.8 million was invested in staff training. In addition, a new training center for apprentices opened at its main site in Mattighofen in September. As of the balance sheet date, approximately 200 apprentices have been employed and trained in 20 different occupations.
Motorcycle sales: 375,492 (+13%)
With 268,575 KTM motorcycles, 75,266 Husqvarna motorcycles and 31,651 GASGAS motorcycles sold in the fiscal year 2022, sales achieved 375,492 motorcycles (2021: 332,881 units). As a result, the motorcycle segment saw a 13% increase in sales.
In the European sales regions, sales were around 122,000 motorcycles (+2 %) and about two thirds of the motorcycles (approximately 253,000) were sold in markets outside of Europe.
Growth was particularly strong in North America, where nearly 110,000 motorcycles were sold, up 67% year-over-year.
Sales also grew well in South America with 37,600 (+16%) and in Asia with about 32,000 (+7%) motorcycles sold. Sales in Australia are close to the level of the previous year (-6%) with about 19,500 motorcycles sold.
After a strong increase in global motorcycle demand last year, both the European motorcycle market (-3%) with a volume of about 730,000 units and the North American motorcycle market (-6%) with a volume of about 470,000 units will decrease slightly and stabilize at a high level in 2022. The market share of all three brands will be around 10% in Europe and 12% in North America in 2022.
The Australian motorcycle market (including New Zealand) also declined slightly, with a 10 per cent drop to 60,000 newly registered motorcycles. However, the total market share of the three brands has increased to 21% in this market.
On the other hand, India’s relevant motorcycle market is clearly on the upswing (+23%). Bajaj has sold nearly 50,000 KTM and Husqvarna motorcycles in India, accounting for 5% market share. The millionth motorcycle – the KTM Adventure 390 – has rolled off the production line at Bajaj’s Chakan factory in Pune. This Bajaj Auto Limited factory has co-developed and manufactured motorcycles for global distribution since 2011.
Bicycle sales: 118,465 (+15%)
Despite major supply problems, the new mobility division with the Husqvarna, R Raymon, GASGAS and FELT brands achieved sales growth of more than 15% and sold 118,465 bikes (previous year: 102,753). , of which 74,479 are electric bicycles (previous year: 76,916). In the bicycle sector, the DACH region (Germany, Austria and Switzerland) continues to be the market with the largest sales volume with about 67%. By 2022, the share of sales in North America could increase from less than 1% to about 11% in the bicycle division.
Strategic cooperation with MV Agusta & takeover of CFMOTO motorcycle distribution in Europe
An important milestone for the company is the signing of a strategic partnership with Italian premium motorcycle manufacturer MV Agusta. In November 2022, KTM AG acquired a 25.1% stake in MV Agusta Motor SpA, headquartered in Varese (Italy), by raising capital. As part of a strategic partnership between the two European motorcycle manufacturers, KTM will support the supply chain for MV Agusta SpA and will take care of the component sourcing. Furthermore, through this partnership, MV Agusta SpA will distribute part of its product line through PIERER Mobility’s global distribution network.
The partnership with CFMOTO will strengthen with the launch of the newly formed KTM Group subsidiary CFMOTO Motorcycles Distribution GmbH, Munderfing (Austria). This company will take over the distribution of CFMOTO motorcycles in Europe, especially in Germany, Austria, Switzerland, Spain and the UK.
Outlook – positive guidance for 2023 confirmed
PIERER Mobility confirms its earnings forecast for fiscal year 2023 published on January 9, 2023, continuing to focus on growth in both motorcycles and bicycles (e-) in fiscal year 2023. The company expects revenue growth of 6 to 10 percent with an EBIT margin of 8 to 10 percent.
PIERER Mobility AG
The 2022 Result record has been confirmed
- Revenue: EUR 2,437 million (+19%)
- EBIT: EUR 235 million (+22%)
- EBITDA: EUR 381 million (+15%)
- Sales: 375,492 motorbikes (+13%)
- Sales: 118,465 E-bikes & bicycles (+15%)
- Number of employees increased by 839 (+16%) to 6,088
