PIERER MOBILITY (PKTM) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 declined 27.4% year-over-year to approximately €1,007M, with a net loss of €172M, driven by weak demand and restructuring in the Bicycle segment.

• Motorcycle and bicycle unit sales fell 21% and 23% respectively, with significant market headwinds in Europe and North America.

• Aggressive restructuring underway, including cost management, workforce reduction by 1,000 employees, and production cuts, especially in Austria and the bicycle division.

• Dealer inventory reduced by 30,000 units; focus on supporting dealers through extended payment terms and discounts.

• Acquisition of a majority stake in MV Agusta completed, with integration progressing as planned and focus shifting to premium brands.

Financial highlights

• EBITDA for H1 2024 was €-102M, a 157% decline year-over-year; EBIT was €-195M, with the bicycle segment contributing a loss of nearly €120M, including €70-75M from one-time stock devaluation and pipeline effects.

• Gross profit dropped 82% to €67M, with gross margin falling from 26% to 7%.

• Free cash flow was €-650M to €-614.8M, mainly due to negative results and increased working capital.

• Net debt increased to €1.4–1.47B, nearly doubling from year-end 2023, driven by high working capital and dealer support.

• Earnings per share was €-5.02.

Outlook and guidance

• Full-year 2024 outlook confirmed: revenue expected to decline 10–15% year-over-year, with EBIT for the motorcycle segment projected to be balanced to slightly positive and the bicycle segment remaining significantly negative.

• Significant improvement anticipated in H2 2024, especially in the motorcycle segment due to seasonality, better product mix, and higher margins in off-road models.

• Working capital and net debt to remain high but targeted to reduce by €200–250M by year-end, with further normalization in 2025.

• Net debt expected to fall below €1B in 2025 as inventory and dealer financing are reduced.