SALES IN TOP GEAR
A THREE-year road map kickstarted a stellar financial year for Australia’s biggest motorcycle group helped along by a surge in new owners during the Covid-19 pandemic.
The ASX-listed Motorcycle Holdings powered to a record performance in 2020-21 with revenue and profit increases across all divisions. Buyers included the likes of doctors, lawyers and other corporate players happy to pay $60,000 for a Harley-Davidson or more for a Ducatti or BMW to those people just starting on their journey forking out $3000 to $7000 for an entry level dirt or road bike.
Chief executive David Ahmet said the average buyer nowadays is male between 20
and 40 although there are plenty who are older.
“Like other leisure activity producers we have benefited from Covid to some degree,” he said.
“That entry level part of the market — off-road bikes and entry level road bikes — have done particularly well in the last 12 months. That’s new people to the industry and that’s why volumes have picked up.”
Over 2020-21 the company’s sale of new and used motorcycles increased by 8 per cent to 22,694 units — with sales of new bikes soaring by 20 per cent.
In the same period revenue rose 19 per cent to $433.9m and net profit after tax surged 86 per cent to $28.3m.
Mr Ahmet, whose stake in the company is worth $33m, said click and collect had done well during Covid, especially as some dealerships had to close their doors due to lockdowns. “They’re buying motorcycles over the phone and coming and picking them up,” he said.
The company operates 41 retail locations in Queensland, NSW, Victoria and the ACT and is looking for acquisitions.
“We don’t have anything in WA or South Australia and they are certainly on the radar,” he said.