PIERER Mobility AG Faces Economic Challenges in H1 2024

PIERER Mobility AG reported a negative financial result for the first half of 2024, impacted by challenging economic conditions. Revenue dropped by 27% to €1,007 million compared to the same period last year. The company experienced losses in both its Motorcycles and Bicycles segments, with an operating loss (EBIT) of €195 million.

The Motorcycles segment saw revenue fall 27% to €936 million. In contrast, the Bicycles segment faced a dramatic decline, reporting €69 million in revenue, down 36% from the previous year.

Despite a challenging first half, PIERER's outlook for the full year remains steady. The Executive Board forecasts improvements in H2, expecting a positive turnaround driven by a higher-margin product mix and strategic restructuring efforts.

Net debt soared to €1,469 million due to increased capital commitment and negative results. However, the company assures a solid financial structure, with measures in place to reduce working capital and net debt by the end of 2025.

PIERER plans further cost reductions, including cutting 200 additional employees in Q3 and lowering production volumes by 25% in 2024, aiming to alleviate product pipeline pressure and dealer warehouse stock.