Pierer is a manufacturer of motorcycles and bicycles that owns three internationally renowned motorcycle brands, including KTM Motorrad, HUSQVARNA Motorcycles, and GASGAS, all of which target the high-end motorcycle market. In recent years, due to the popularity of electric bicycles in Europe, the Pierer Mobility Group has also introduced electric bicycles under three brands: HUSQVARNA, R Raymon, and GASGAS. The continuously growing e-bike market has boosted Pierer’s sales. In the first half of 2023, Pierer Mobility AG’s sales increased, but profitability significantly decreased due to high market inventory and low-cost clearance.
In 2023, Pierer’s bicycle division saw a 39% increase in sales, with 71,401 bicycles and e-bikes sold compared to 51,417 in 2022. Among these, e-bike sales amounted to 40,401 units, marking a 16% increase compared to the first half of 2022 (34,829 units). Mechanical bicycle sales also saw growth.
The majority of sales were exported to Europe, totaling 59,212 bicycles (a 40% increase), with the DACH region being the largest export destination (representing 60% of sales). While mature markets like DACH offer substantial capacity, growth in regions like North America was also robust, with a 33% increase reaching 9,194 units. Although the growth rate was smaller, the market potential is larger.
Pierer’s overall business revenue reached €1.286 billion, a 20.2% increase compared to the €1.154 billion in the first half of 2022. The previous year, Pierer Mobility’s revenue was around $2.6 billion, a 19% increase from the year before, and it expects to maintain a operating profit margin of 9-10%, achieving its best sales record in 13 years, with further growth expected this year.
To provide better service, Pierer has started building its own factories. “We are making major investments for a successful future. The best example is our joint venture Pierer-Maxcom, where we cooperate with one of the largest bicycle assembly companies in Europe. Now, we will have our own warehousing, logistics, and assembly facility in Bulgaria to offer more flexibility and service to our dealer partners,” said Florian Burguet, Chief Strategy Officer at Pierer New Mobility.
However, Pierer’s declining profits are also influenced by market factors. The bicycle division’s revenue for the first half of 2023 reached €107.5 million, a 37% increase compared to the first half of 2022. But pre-tax profits significantly declined. Pierer stated, “Due to significant changes and challenges in the entire bicycle market, dealer inventories have remained high, with a large number of products sold at a discount, which has impacted pre-tax profits.” At the same time, Pierer pointed out that the “New Mobility” market offers “significant growth potential” and expects the market to produce higher-quality products to meet this demand. “In the second half of 2023, the PIERER Mobility Group will continue to focus on growth in its core areas, including motorcycles and (electric) bicycles. Although there are still significant challenges, especially in the bicycle market, the Executive Board confirms the outlook for 2023, with revenue growth expected to be between 6% and 10%, and a pre-tax profit margin of 8% to 10%.
