Adjustment of the guidance for the 2024 financial year by PIERER Mobility means some global changes. For the 2024 financial year, the Executive Board expects a decline in sales of 10% to 15% for both the motorcycles and bicycle divisions due to the current market developments.
In the Motorcycles segment, the Executive Board assumes that the cost savings introduced in the current financial year 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. The development of existing dealers and the further expansion of the dealer network to support the brand strategy will be key issues in 2024.
In the current financial year, momentum in PIERER Mobility’s core motorbike markets in the USA and Europe has slowed significantly. Due to the latest interest rate decisions in the USA, interest rates are expected to remain high, which will have a negative impact on sales expectations for the American market. Sales figures in Europe are also still volatile. Overall, PIERER Mobility’s sales figures will fall short of expectations this year after three years of above-average success.
This means that dealers will have to reduce their inventories and thus continue to tie up considerable capital. The PIERER Mobility Group is therefore continuing its efforts to strengthen its dealer structure through extended payment terms and higher discounts. These measures have already led to a sharp increase in working capital in the past financial year. Management expects working capital and the associated capital commitment to remain high in 2024. This is expected to have a significant negative impact on EBIT and the financial result in the current financial year.
Expansion of the supply chain in India and China
Another priority in 2024 is to increase efficiency in product development. The focus will be on aligning and prioritizing activities in line with the Group’s premium brand strategy and streamlining development processes. Following on from this, joint research and development with the strategic partner Bajaj Auto in India and the JV partner CFMOTO in China will be expanded at the respective locations.
Due to the increasingly fragile supplier industry in Europe, the PIERER Mobility Group is utilizing the favorable economic conditions in these regions to secure its competitiveness. An efficient and high-quality supplier industry is being established there.
