Ad hoc notice pursuant to Article 17 of Regulation (EU) No 596/2014 (MAR)
Timely announcement in accordance with Article RA
PIERER Mobility: 2023 – Strong year in the motorcycle segment – Restructuring in the bicycle segment underway
Happy New Year on the bike – start of restructuring on the bike
The PIERER Mobility Group increased its consolidated turnover by around 9% to a new record of €2,661 million in the monetary year 2023 (previous year: €2,437 million), despite difficult economic situations and upheavals in the bicycle industry.
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%).
During the 2023 financial year, the PIERER Mobilité group overlapped with 96 more people to reach a total of 6,184 painters. Among them, around 220 apprentices work in the educational painting workshop in Mattighofen. Around 1,300 painters work in Research and Development, which corresponds to about 21% of the total.
Increasing Market Share in Primary 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.
Bicycles: 157,358 (-33%) – stock adjustment skews growth
The PIERER Mobility Group also faced a sharp drop in costs in the market due to worldwide overstocking in the bicycle sector. A sales expansion of more than 30% in this segment with the HUSQVARNA, R RAYMON, GASGAS and FELT brands characterized by stock changes and the divestment of the R Raymon brand. In the 2023 monetary year, 157,358 bicycles were sold (previous year: 118,465), totaling 100,640 electric bicycles (previous year: 74,479). The DACH region remains the largest market for bicycle sales, with around 60%. The bicycle department’s sales percentage in North America will be 10% in 2023.
In the most sensible of the sector in terms of ESG risk rating
In January 2024, PIERER Mobility AG obtained the update of its ESG risk assessment from Sustainalytics. The company was classified as having a low risk of significant monetary impact on points similar to ESG (score: 10. 0). With this ESG risk rating, the company thus reaches the first position in the automotive sector assessed through Sustainalytics. In addition, PIERER Mobility AG has once again been identified via Sustainalytics as an “ESG Regional Top Rated” and “ESG Industry Top Rated” company in 2024.
In the 2024 financial year, PIERER Mobility AG will strengthen its core business “Motorized Two-Wheeled Vehicles (Motorcycles and E-Bikes)” with the KTM, Husqvarna, GASGAS and MV Agusta brands. To ensure the group’s profitability, controle is implementing multi-million dollar charge relief measures in the current consolidation year. The goal will be to optimize product progression cycles and, obviously, align product programs.
In the motorcycle segment, the production of some mid-range models and some R activities
These measures will be accompanied by a reduction in the number of employees of up to 300 in Mattighofen and Munderfing, in particular through the withdrawal of temporary workers and workers leaving the company through natural fluctuations.
In the context of complicated global economic developments, control expects sales to remain unchanged and the EBIT margin to be between 5% and 7% for the monetary year 2024.
1) Excluding lease additions (IFRS 16) in the amount of €32. 5 million
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THIS ANNOUNCEMENT DOES NOT CONSTITUTE AN OFFER TO SELL SECURITIES OR A SOLICITATION OF AN OFFER TO BUY ANY SECURITIES OF PIERER MOBILITY AG. IT IS NOT INTENDED FOR DISTRIBUTION, TRANSMISSION, OR MARKETING. PUBLICATION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN THE UNITED STATES, AUSTRALIA, CANADA, JAPAN OR SOUTH AFRICA OR ANY OTHER JURISDICTION IN WHICH DISTRIBUTION OF THIS ADVERTISEMENT WOULD BE UNLAWFUL.
Investor Relations
Melinda Busáné Bellér
Tel: +43 (0) 1 533 1 433 – 70
Email: [email protected]
ISIN: AT0000KTMI02; Swiss Security Number (Switzerland): 41860974; Ticker symbol: PKTM; Bloomberg: PKTM SW, PKTM AV; Reuters: PKTM. S; PKTM. VI
1824525 29 January 2024 CET/CEST