EQS-Ad-hoc: PIERER Mobility AG / Key word(s): Half Year Results Ad hoc notification pursuant to Article 17 of Regulation (EU) No 596/2014 (MAR) Ad hoc announcement pursuant to Art. 53 LR Wels, August 23, 2024
PIERER Mobility AG: Economically volatile and difficult conditions led to negative result in H1 2024, outlook for the full year confirmed
Earnings performance in the first half of 2024
The PIERER Mobility Group generated revenue of € 1,007 million (-27%) in H1 2024. Around 93% of this was attributable to the Motorcycles segment and 7% to the Bicycles segment. Around 61% of revenue was generated in Europe, 27% in North America (USA, Canada, Mexico) and 12% in other countries.
At € -195 million, the operating result (EBIT) in H1 2024 was significantly below the previous year's figure of € 97 million. The main factor behind the negative result was the Bicycles
The operating result before depreciation and amortization (EBITDA) of € -102 million (previous year: € 179 million) corresponds to an EBITDA margin of -10%.
The result for the period amounted to € -172 million (previous year: € 53 million).
The main drivers behind the results for the first half of the year were the decline in sales due to the economic environment (particularly in the USA), expenses in connection with the restructuring of the Bicycle segment as well as the production and personnel costs in Europe.
Working capital and net debt
The increased net debt of € 1,469 million is due to the negative result as well as the increased capital commitment. One of the main reasons for this is the necessary support for the global dealer network. As a result of the packages of measures, working capital and thus net debt will return to a significantly lower level by the end of 2025. The necessary financing requirements have been secured.
Significant improvements expected in H2 2024 - measures to improve earnings
The following measures were taken to improve the result in the second half of the year:
Motorcycles segment
In H1 2024, revenue in the Motorcycles segment fell by 27% to € 936 million. EBITDA reached € 11 million (previous year: € 196 million) and EBIT amounted to € -78 million (previous year: € 117 million).
The macroeconomic environment remained challenging in H1 2024. In particular, high interest rates in the USA, inflation in many European countries and a slowdown in global economic growth had a negative impact on PIERER Mobility's motorcycle sales in H1 2024, which fell by 21.2% to a total of 147,496 units. Around 44% of motorcycles were sold in Europe, 21% in North America including Mexico, 22% in India and Indonesia and 13% in the rest of the world. In H1 2024, PIERER Mobility acquired a majority stake in MV Agusta. The integration of the Italian luxury motorcycle manufacturer is going according to plan.
The development of motorcycle registrations in PIERER Mobility's core markets presented a mixed picture in the first half of the year: a slightly positive trend in overall demand in Europe, driven primarily by the low-price segment (Chinese imports), was offset by a decline in demand in North America as well as in Asia, Australia and New Zealand. In this environment, PIERER Mobility succeeded in maintaining or achieving a market share of over 10% in each of the key markets of Europe, the USA and China.
Bicycles segment
At € 69 million, revenue in H1 2024 was 36% lower than in H1 2023. EBITDA amounted to € -115 million (previous year: € -14 million) and EBIT to € -117 million (previous year: € -16 million).
As part of the restructuring of the bicycle business, the R Raymon brand was sold as a first step in 2023. In the first half of the previous financial year, this brand had a sales share of 51% for e-bicycles and 61% for bicycles. Strong sales increases for the Husqvarna, GASGAS and Felt brands in H1 2024 meant that sales of e-bicycles only fell by 26% to 28,771 units and sales of bicycles by 19% to 25,049 units. The special effects in connection with the restructuring of the bicycle business amounted to around € -75 million in H1 2024. PIERER Mobility is also focusing on premium brands in this segment. The Group therefore increased its stake in the bicycle manufacturer Felt and has been the majority shareholder since July 1, 2024.
Employees
As at June 30, 2024, the PIERER Mobility Group employed 6,024 people, 4,712 of whom were based in Austria (78%). In total, the Group's headcount has fallen by 160 employees since December 31, 2023. This was due to the reduction of 373 employees in H1 2024, 309 of whom were in Austria. In contrast, the first-time full consolidation of MV Agusta (Italy) added an additional 213 employees to the Group.
Outlook for the 2024 financial year confirmed
In a persistently challenging environment, the Executive Board expects a significantly better second half of the year, supported by a higher-margin product mix, particularly in the offroad segment. For 2024 as a whole, it is forecasting a decline in revenue of 10% to 15% compared to the previous year. In the Motorcycles segment, the Executive Board assumes that the cost savings introduced will be able to compensate for the negative effects of declining sales to such an extent that a balanced to slightly positive EBIT can be generated in the 2024 financial year. The development of existing dealers and the further expansion of the dealer network to support the brand strategy will be key issues in the 2024 financial year. In the Bicycle division, however, the Executive Board expects a significantly negative EBIT of € -110 to € -130 million, which is mainly due to extraordinary impairment and restructuring requirements. Valuation measures amounting to € -75 million have already been recognized in the half-year results.
Group key figures H1 2024 of PIERER Mobility AG
The Half-Year Financial Report 2024 of PIERER Mobility AG and the current investor presentation will be available on the company's website at https://www.pierermobility.com/en/investor-relations/publications before the market opens on Monday, August 26, 2024.
Legal notice 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.
For further information: Investor Relations Hans Lang & Melinda Busáné Bellér Tel: +43 676 4140945 and +43 676 4093711, respectively Email: ir@pierermobility.com Website: https://www.pierermobility.com
ISIN: AT0000KTMI02; security number (Switzerland): 41860974; securities code: PKTM; Bloomberg: PKTM SW, PKTM AV; Reuters: PKTM.S, PKTM.VI
End of Inside Information
23-Aug-2024 CET/CEST News transmitted by EQS Group AG. www.eqs.com |
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: | 1974321 |
Valorennummer (Schweiz): 41860974 Wertpapierkürzel: PKTM Bloomberg: PKTM SW; PKTM AV Reuters: PKTM.S; PKTM.VI |
End of Announcement | EQS News Service |
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1974321 23-Aug-2024 CET/CEST
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