EQS-Adhoc: PIERER Mobility: 2023 – Strong year in the motorcycle segment – Restructuring in the bicycle segment underway

EQS-Ad-hoc: PIERER Mobility AG / Key word(s): Preliminary Results
   PIERER Mobility: 2023 – Strong year in the motorcycle segment –
   Restructuring in the bicycle segment underway

   29-Jan-2024 / 07:00 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.

   ══════════════════════════════════════════════════════════════════════════

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

   Ad hoc announcement pursuant to article 53 LR 

    

   Wels, January 29, 2024

    

   PIERER Mobility: 2023 – Strong year in the motorcycle segment –
   Restructuring in the bicycle segment underway

    

     • New record sales: EUR 2,661 million (+9%)
     • EBIT: EUR 160 million (previous year: EUR 235 million)
     • EBIT margin 6%: negatively impacted by the bicycle restructuring
     • Outlook 2024: increasing profitability and strengthening the core
       business

    

   Preliminary key financial figures for the 2023 financial year

   Strong year in the motorcycle segment – restructuring in the bicycle
   segment begins

    

   The PIERER Mobility Group increased consolidated sales by around 9% to a
   new record of EUR 2,661 million in the 2023 financial year (previous year:
   EUR 2,437 million) despite difficult economic conditions and upheaval in
   the bicycle industry.

    

   The preliminary operating result (EBIT) fell by around 32% to EUR 160
   million (previous year: EUR 235 million), which corresponds to an EBIT
   margin of 6.0%. In the motorcycle segment, the EBIT margin is around 9%,
   which is within the originally planned range of 8-10%. On the other hand,
   the reorganization of the bicycle segment had a significant negative
   impact on earnings. At EUR 324 million, the operating result before
   depreciation and amortization (EBITDA) is  around 15% below the previous
   year's figure, which corresponds to an EBITDA margin of 12.2%.

    

   In the motorcycle segment, the cost of dealer inventories rose sharply due
   to significantly higher interest rates despite good demand. As a result,
   extended payment terms and higher discounts had to be granted to dealers
   in order to strengthen the dealer structure. Due to the sufficient
   liquidity reserves available, PIERER Mobility AG was able to support not
   only its dealers but also its suppliers accordingly in order to stabilize
   their financial situation and reduce the significantly increased burdens
   caused by the rise in interest rates. The associated negative impact on
   free cash flow, which totalled EUR -411 million in 2023 (previous year:
   EUR -3 million), was therefore consciously accepted. In addition, the
   level of investment in the 2023 financial year remained at a high level
   (EUR 284 million, +6%). In the past financial year, investments in series
   development projects including tools totalled EUR 195 million (+21%).

    

   In the 2023 financial year, the PIERER Mobility Group increased its
   workforce by 96 to a total of 6,184 employees. Of these, around 220
   apprentices are employed in the training workshop at the Mattighofen site.
   Around 1,300 employees work in Research & Development, which corresponds
   to around 21% of the total workforce.

    

   Increase in market share in the most important motorcycle
   markets – Motorcycle sales: 381,555 (+2%)

    

   With 280,206 KTM motorcycles sold, 67,462 HUSQVARNA motorcycles sold and
   29,532 GASGAS motorcycles sold in the 2023 financial year, in addition to
   the motorcycles sold by MV Agusta (1,852) and CFMoto (2,503), sales
   totalled 381,555 motorcycles (2022: 375,492 units). The motorcycles
   segment thus achieved a sales increase of 2 %. In the sales regions of
   Europe, sales totalled around 140,000 motorcycles (+15%) and around two
   thirds of motorcycles (around 240,000) were sold in markets outside
   Europe. Despite a slight decline in sales in North America, the subsidiary
   there still managed to sell more than 100,000 motorcycles for the second
   time in a row. While sales in South America (-26%) and Asia (-27%)
   declined in the past financial year, sales in Australia were up slightly
   (+1%) on the previous year with around 19,700 motorcycles sold.

    

   Contrary to the difficult global economic conditions, demand in the core
   markets of Europe grew very strongly at +11% (~820,000 newly registered
   motorcycles) and in North America (USA & Canada) at +4% (485,000
   motorcycles). The market share of all three brands (KTM, Husqvarna,
   GASGAS) will therefore be around 10.6% in Europe and 12.6% in North
   America in 2023. The Australian (including New Zealand) motorcycle market
   declined slightly, with a 3% drop to 67,000 newly registered motorcycles.
   Nevertheless, the total market share of the three brands in this market
   increased to 21%. The relevant Indian motorcycle market, on the other
   hand, is experiencing a significant upswing (+22%), as in the previous
   year. Bajaj sold almost 66,000 KTM and Husqvarna motorcycles in India,
   resulting in a market share of 5.3%.

    

   Bicycle sales: 157,358 (+33%) – inventory adjustment distorts sales
   increase

    

   The PIERER Mobility Group was also confronted with a sharp fall in market
   prices due to global overstocks in the bicycle sector. The sales growth of
   more than 30% in this segment with the HUSQVARNA, R RAYMON, GASGAS and
   FELT brands was characterized by inventory adjustments and the disposal of
   the R Raymon brand. In the 2023 financial year, 157,358 bicycles were sold
   (previous year: 118,465), of which 100,640 were e-bicycles (previous year:
   74,479). The DACH region remains the largest sales market for bicycles,
   accounting for around 60%. The share of sales in the bicycle division in
   North America will be 10% in 2023.

    

   At the top of the industry in terms of ESG risk rating

    

   In January 2024, PIERER Mobility AG received the update of its ESG risk
   assessment by Sustainalytics. The company was classified as having a low
   risk of material financial impact from ESG factors (score: 10.0). With
   this ESG risk rating, the company thus achieved the 1^st place in the
   automotive sector assessed by Sustainalytics. In addition, PIERER Mobility
   AG was again recognized by Sustainalytics as an "ESG Regional Top Rated"
   and "ESG Industry Top Rated" company in 2024.

    

   Outlook 2024: increasing profitability and strengthening the core business

    

   In the 2024 financial year, PIERER Mobility AG will focus on strengthening
   its core business "Powered-Two-Wheelers (motorcycles and e-bicycles)" with
   the brands KTM, Husqvarna, GASGAS and MV Agusta. In order to secure the
   Group's profitability, the management is implementing cost-cutting
   measures in the double-digit million range in the current year of
   consolidation. A  key focus will be on streamlining product development
   cycles and a clear alignment of the product programs.

    

   In the motorcycle segment, parts of production for individual mid-range
   models and certain R&D activities are being transferred to strategic
   partner Bajaj Auto, India, and CFMOTO, China. This affects products (road
   motorcycles) in very price- and competition-intensive markets. The model
   range previously produced by Bajaj (between 125 and 390 cubic centimetres)
   will be expanded. Road motorcycles between 790 and 950 cubic centimetres
   will be assembled by the Chinese partner CFMOTO. Among other things, this
   is intended to exploit cost advantages in these regions and accelerate
   development and industrialization processes.

    

   These measures will be accompanied by a reduction in the number of
   employees by up to 300 in Mattighofen and Munderfing, in particular
   through the removal of temporary workers and employees leaving the company
   through natural fluctuation.

    

   Against the backdrop of difficult economic developments worldwide, the
   Executive Board expects sales to remain virtually unchanged and the EBIT
   margin to be between 5% and 7% in the 2024 financial year.

    

   Preliminary key figures 2023 of the PIERER Mobility Group (consolidated)

    

   MOST SIGNIFICANT FINANCIAL PERFORMANCE INDICATORS:                       
                                                                       
   Earnings figures                                      2022    2023   Chg.
   Sales                                 mEUR         2,437.2 2,661.2   9.2%
   EBITDA                                mEUR           381.1   323.5 -15.1%
   EBITDA margin                                        15.6%   12.2%       
   EBIT                                  mEUR           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 before taxes (EBT)           mEUR           215.9    92.1 -57.3%
   Free Cash Flow                        mEUR            -2.8  -411.1  <100%
                                                                       
   Balance sheet figures                                 2022    2023   Chg.
   Balance sheet total                   mEUR         2,550.6 2,953.3  15.8%
   Equity                                mEUR           914.4   909.2  -0.6%
   Equity ratio                                         35.8%   30.8%       
   Net debt                              mEUR           256.5   775.9  >100%
   Gearing                                              28.0%   85.3%       
                                                                            
   Other                                                 2022    2023   Chg.
   Capex^1^)                             mEUR           267.5   284.0   6.2%
   Employees                             Headcount      6,088   6,184   1.6%

   ^ 

   ^1) Excluding lease additions (IFRS 16) in the amount of mEUR 32.5

    

   The annual financial report and the sustainability report for the 2023
   financial year will be published on 27 March 2024 and will be available on
   the company's website www.pierermobility.com under the following links

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

   [2]https://www.pierermobility.com/nachhaltigkeit/publikationen

    

   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 und 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: [email protected]

   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

    

   End of Inside Information

   ══════════════════════════════════════════════════════════════════════════

   29-Jan-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:      [email protected]
   Internet:    www.pierermobility.com
   ISIN:        AT0000KTMI02
   WKN:         A2JKHY
   Listed:      SIX, Vienna Stock Exchange
   EQS News ID: 1824525

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

    
   End of Announcement EQS News Service


   1824525  29-Jan-2024 CET/CEST

References

   Visible links
   1. https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=0043b21aed9ea0d930aa0bc5dc68d440&application_id=1824525&site_id=apa_ots_austria~~~18b544d0-9c71-4160-bd95-cc8b9aff9fbf&application_name=news
   2. https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=78f50df3f7ae00b1b727c693dc6acb31&application_id=1824525&site_id=apa_ots_austria~~~18b544d0-9c71-4160-bd95-cc8b9aff9fbf&application_name=news
   3. https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=22eb2acef6b31126366f8fd4e5fa4f46&application_id=1824525&site_id=apa_ots_austria~~~18b544d0-9c71-4160-bd95-cc8b9aff9fbf&application_name=news

OTS-ORIGINALTEXT PRESSEAUSSENDUNG UNTER AUSSCHLIESSLICHER INHALTLICHER VERANTWORTUNG DES AUSSENDERS - WWW.OTS.AT |

print