Full-throttle year shows mixed results for Triumph

Posted on 12 Dec 2013 by Callum Bentley

A huge year for breaking into new markets and R&D for the British motorcycle manufacturer Triumph Motorcycles Group has resulted in a mixed bag in its latest financial results.

Triumph Motorcycles Group has today released its financial results for the year to June 30, 2013, with a dramatic yet predicted decline in operating loss.

Group turnover increased to £368.6 million in 2013 from £342.3 million in 2012. Unit sales of motorcycles increased to 52,000 in 2013 from 49,000 in 2012.

However, in line with company expectations due to significant movements in foreign currency and continued planned overseas investments, the operating loss before interest and tax was £0.1 million in 2013 from £15.7 million profit in 2012.

The operating results for the year have been adversely affected by foreign exchange losses emanating from the restatement of foreign currency denominated assets and liabilities, additional net inter group charges and the continuing cost of entry into Brazil and the new entry into India.

The Triumph Group’s recognition as a worldwide brand continued to grow and its overall market share increased to 6.0% (2012 – 5.7%) in a challenging economic climate particularly in Europe, particularly Italy, France and Spain, three key markets for the brand. The global 500cc plus motorcycle market has fallen by 6.4% during the 12 month period to date.

The best markets for Triumph were in the UK, US and Brazil, with the company’s retail market share in the UK increasing to 20.1%. During the year, Triumph benefited from an excellent initial first year performance upon entry to the Brazilian market, capturing 3.4% market share.

The continued Research and Development spend, including Product Development within the Triumph Group continues at record levels. Expenditure for 2013 was £25.3 million and for 2012 £24.0 million.