Profit stalls at iconic motorcycle maker Triumph
Profit has stalled at iconic motorcycle brand Triumph as an economic downturn in China and a fall in the value of sterling impacted its sales.
The Derbyshire-headquartered business, which is owned by billionaire John Bloor, has reported a pre-tax profit of £72.6m for the year to 30 June, 2024, up slightly from the £72.3m it achieved in the prior 12 months.
Newly-filed accounts with Companies House have also revealed that the firm’s turnover fell from £703.2m to £682.8m over the same period.
Bloor, who established Triumph in the 1980s when the original company which could trace its roots back to 1902 went into receivership, is also behind Bloor Homes.
In the UK, the company’s turnover increased from £83.9m to £87m and from £288.6m to £304.4m in the rest of Europe.
However, its sales in the rest of the world dipped from £330.6m to £301.3m.
In the year, Triumph wholesaled 108,436 motorcycles, up from 88,607.
Triumph: ‘Trading conditions will remain challenging’
A statement signed off by the board said: “The company continues to perform well despite the recent challenges of the global economic uncertainty, a war taking place on our continent, increased competition and various supply chain issues which is impacting the entire automotive industry.
“Our business has managed to be resilient and perform well in the face o these challenges.
“The level of sales achieve day the group has fallen slightly despite an increase in wholesales.
“This is primarily due [to] a reduction in the average selling price per bike in 2024 due to a number of factors.
“The appreciation of sterling versus other currencies has reduced the sterling value of Triumph’s foreign currency revenues; there has been a significant economic downturn in China that has impacted sales in the market and reduced selling prices significantly in that region.
“In addition, the highly successful launch of the Speed 400 and Scrambler 400 X in the year has created a new entry point in the market for Triumph, which has also contributed to reducing the average selling price per bike.”
Triumph also pointed to its operating profit being “negatively impacted by an adverse £25m swing in unrealised foreign exchange”.
On its future, the company added: “Trading conditions for the motorcycle industry are expected to remain challenging amid global economic uncertainty after a period of high inflation around the world which could have a negative impact on demand for Triumph products.”