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PIERER Mobility AG Financial Results FY 2023 | Resilience in Motorcycles, Transformation in Bicycle with CFO

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PIERER Mobility AG FY 2023: Key Takeaways

2023 Financial Highlights: A Comprehensive Overview

PIERER Mobility Group, navigating through a challenging economic landscape, achieved a commendable 9% increase in consolidated sales, reaching a new high of EUR 2,661 million. Despite these gains, the year witnessed a substantial 32% drop in the preliminary operating result (EBIT) to EUR 160 million, translating to a 6.0% EBIT margin. This decline, chiefly attributed to the restructuring initiatives in the bicycle segment, contrasts with the steady performance in the motorcycle sector, where the EBIT margin stood strong at around 9%.

Motorcycle Segment: Resilient Growth Amid Economic Volatility

In 2023, PIERER Mobility witnessed increased dealer inventory costs in the motorcycle division due to rising interest rates. To counterbalance this, dealers were offered extended payment terms and higher discounts, reinforcing their financial stability. Despite the negative impact on free cash flow, which plummeted to EUR -411 million, the company’s robust liquidity reserves played a critical role in supporting dealers and suppliers. Investment levels remained high, with EUR 284 million allocated, signifying a 6% increase from the previous year.

Workforce Expansion and Market Share Growth

The Group’s workforce expanded by 96, reaching 6,184 employees, with approximately 21% engaged in Research & Development. Motorcycle sales saw a modest 2% increase, with significant market share gains in key regions. In Europe, the sales surged by 15%, while the North American subsidiary successfully maintained high sales volumes despite a slight downturn. The brand’s market share climbed to 10.6% in Europe and 12.6% in North America, underscoring its growing influence in these crucial markets.

Bicycle Segment: Navigating Through Market Shifts

The bicycle sector faced unique challenges, including a significant drop in market prices and global overstocking. Despite these hurdles, PIERER Mobility recorded a 33% increase in bicycle sales, largely influenced by inventory adjustments and the strategic disposal of the R Raymon brand. The Group sold 157,358 bicycles, with e-bicycles comprising a substantial portion.

ESG Achievements and Forward-Looking Strategies

PIERER Mobility AG’s commitment to sustainability was recognized with a leading ESG risk rating, positioning the company at the forefront of the automotive sector regarding environmental, social, and governance standards.

Outlook for 2024: Focusing on Core Business and Profitability

Before 2024, PIERER Mobility AG aims to reinforce its core “Powered-Two-Wheelers” business, with cost-cutting initiatives and streamlined product development cycles being key priorities. Strategic partnerships in India and China are set to enhance efficiency in producing mid-range motorcycle models. Despite global economic uncertainties, the company anticipates maintaining stable sales with an expected EBIT margin between 5% and 7%.


Conclusion: PIERER Mobility’s Road Ahead

PIERER Mobility’s 2023 fiscal results reflect a company adept at navigating market complexities, particularly its robust motorcycle segment. With strategic restructuring in the bicycle division and a focused approach towards 2024, the company is well-positioned to strengthen its market presence and financial health further.

Chapters
  • PIERER Mobility at a glance
  • Powered two-wheelers (PTW) unit sales
  • The Leading European Powered Two-Wheeler Group
  • Sharply positioned brands
  • Motorcycle Wholesales – BY 2023
  • Bicycle Wholesales – BY 2023
  • Global production facilities BY 2023
  • Financials – Consolidated profit & loss figures under IFRS
  • Financials – Business segments under IFRS
  • Financials – Consolidated balance sheet and cash flow figures under IFRS
  • Strategy 2024 – 2026
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Viktor Sigl
CFO | PIERER Mobility AG

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Melinda Busáné Bellér
IR & Sustainability | PIERER Mobility AG

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