EQS-Ad-hoc: PIERER Mobility AG / Key word(s): Half Year Results
PIERER Mobility AG: Economically volatile and difficult conditions led to
negative result in H1 2024, outlook for the full year confirmed
23-Aug-2024 / 17:58 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 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
• Results in H1 2024 negative, but in line with the current outlook for
the 2024 financial year
• Significant improvement expected in H2
• Working capital remains at a high level, significant improvements
expected at the end of 2024 and in 2025
• Increased net debt but solid financing structure
• Motorcycle market: Challenging market environment - Europe slightly
positive, North America, Australia and China declining, India positive
• MV Agusta integration process going according to plan
• Bicycle market: persistent oversupply on the market necessitated value
adjustments, focus on the premium segment
• Full-year outlook for 2024 confirmed
Earnings performance in the first half of 2024
H1 2023 H1 2024
Revenue in €m 1,388 1,007
EBITDA in €m 179 -102
EBIT in €m 97 -195
Employees as of June 30 People 6,314 6,024
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
segment at € -117 million, of which around € -75 million was attributable
to special write-offs/effects. The result in the Motorcycles segment
amounted to € -78 million. The Executive Board expects that the second
half of the year - primarily driven by a higher-margin product mix - will
turn the overall result into positive territory.
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:
• A further significant cost reduction will take place in the third
quarter through the reduction of an additional 200 employees in the
overhead area. Together with the cost reductions and personnel
adjustments already made in the first half of the year, this will
secure and strengthen the competitiveness of PIERER Mobility AG in the
long term.
• The reduction in production volumes by around 25% in 2024 is intended
to relieve pressure on the product pipeline and dealer warehouses.
This will lead to a significant reduction in capital commitment and
therefore also in net debt.
• Another focus is on increasing efficiency in product development. The
focus is on aligning and prioritizing activities as part of the
Group's premium brand strategy as well as streamlining and
accelerating development processes. Following on from this, we are
leveraging further synergies in research and development with our
strategic partners.
• The loss-making bicycle division will be systematically restructured.
The realignment already initiated in the 2023 financial year with a
focus on the premium segment will be implemented and completed in
2024.
Motorcycles segment
H1 2023 H1 2024 Change
External revenue in €m 1,277 936 -27%
EBITDA in €m 196 11 -94%
EBIT in €m 117 -78 n.m.
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
H1 2023 H1 2024 Change
External revenue in €m 108 69 -36%
EBITDA in €m -14 -115 > -100 %
EBIT in €m -16 -117 > -100 %
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
H1 2023 H1 2024 Change
Revenue in €m 1,388 1,007 -27.4%
EBITDA in €m 179 -102 > -100 %
EBITDA margin 12.9% -10.1% -23.0pp
EBIT in €m 97 -195 > -100 %
EBIT margin 7.0% -19.4% -26.4pp
Profit for the period in €m 53 -172 > -100 %
Earnings per share in € 2 -5 > -100 %
Dec 31, 2023 June 30, 2024 Change
Balance sheet total in €m 2,953 3,269 10.7%
Equity in €m 909 722 -20.6%
Equity ratio 30.8% 22.1% -8.7pp
Working capital employed in €m 531 809 52.2%
Net debt in €m 776 1,469 89.3%
Gearing 85.3% 203.4% 118.1pp
The Half-Year Financial Report 2024 of PIERER Mobility AG and the current
investor presentation will be available on the company's website at
(1)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: (2)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
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23-Aug-2024 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: +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
1974321 23-Aug-2024 CET/CEST
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