The end of 2017 is here, which means that we will start to see the results from the year’s sales cycle (don’t expect good news).
As such, one of the first companies to report in is Triumph, which shouldn’t be too surprising, considering that the British brand closes its books at the end of June (it’s actually surprising that Triumph waited so long in reporting these numbers).
From July 1, 2016 to June 30 2017, Triumph Motorcycles sold 63,404 motorcycles to its dealerships making £498.5 million in revenue in the process. From that, Triumph was able to make £24.7 million, before taxes.
These numbers mean that Triumph has seen a 12.7% increase in unit sales to dealerships over the past financial period. It also means that on the money side, Triumph has seen increases of 22% (revenue) and 48% (income, pre-tax), which isn’t too shabby.
There are a couple caveats of course, though. Triumph’s figures report sales to dealerships, not customers, and the British brand has earned itself a reputation for channel stuffing (forcing dealerships to order bikes, even if the buyer demand doesn’t support such an action).
The fact that Triumph’s financial year only covers mid-sales cycle for 2017 is a bit interesting as well, and it means it only reflects about half of the dismal year that the motorcycle industry has endured.
More worrying is the level of income that Triumph is generating from selling 63,000+ motorcycles and £498.5 million in revenue – a £24.7 million income before taxes is a thin margin for a motorcycle manufacturer to operate on.
However, profits and gains are still profits and gains, and with the motorcycle industry looking for wins wherever it can, we suppose that this is welcomed news from Triumph.
Source: Triumph Motorcycles America