Triumph Motorcycles has invested heavily in R&D and overseas expansion in 2012 but as a result operating profit before interest and tax reduced to £15.7m in 2012 from £22.3m in 2011.
Group turnover for the year remains stable at £342.3m and the number of motorcycles it sold stayed steady at 49,000.
The company attributed the profit decrease to its increased level of investment with an additional £2m being spent on R&D operations. Investment in product development rose from £22m in 2011 to £24m in 2012.
The company released a statement saying that “Europe continues to be an area of concern,” as it looks to move into different markets. The company has expressed delight in the positives steps it has made into the US market where it saw sales increase by 23% from 2011. The average market growth in the region was only 3%. This was attributed due to a strong appetite for classic motorcycles.
The company made a further investment in its burgeoning South American operation. Costs associated with setting up manufacturing and sales operations in Brazil made up much of the remaining £7m drop in profits. Triumph says that so far South America has been an untapped market for the company and it is expecting strong performance in the region over the coming years.
A spokesperson for the company said that Triumph’s Brazilian facility would only serve the South American market with its factory in Hinckley, Leicestershire, continuing to make its new bikes, with older versions continuing to be manufactured in Thailand.
Despite the spokesperson’s assertion that sales will be a “slow build up”, its first dealership in the continent opened in Sao Paulo last week, selling 75 bikes in its first two days.
The company has brought out several new motorbikes this year, with the Explorer coming out earlier this year, its new Daytona 675 and Daytona 675R models revealed at the Milan Motorcycle Show this week with its newest motorcycle, Trophy, being released to the touring market in January 2013.
A standard edition Trophy will cost £12,945 and the premium version with electronically adjustable suspension will enter the market at £14,299.