Pierer moves from CEO to CO-CEO at Pierer Mobility

Stefan Pierer is relinquishing his position as CEO of the parent company Pierer Mobility as part of the attempt to reorganize and restructure KTM and associated companies. Gottfried Neumeister, who is already a manager in the group, will become CEO. Pierer will remain co-CEO and wants to “accompany the restructuring process,” according to a company statement on Thursday evening. And Pierer Mobility AG is now in the red for 2024.

These red figures, which are expected for the previous year according to the company announcement, are no surprise given the billion-dollar bankruptcies in the Pierer conglomerate with KTM and KTM-related companies. The parent company’s sales fell by 29 percent to 1.9 billion euros compared to 2023 in the previous year. Sales of motorcycles fell by 21 percent to 292,497 (including around 60,000 units via the Indian partner Bajaj). Operationally before depreciation (EBITDA), a negative result of around 300 million euros is expected – before any advertising that is still necessary in the course of the attempted restructuring.

Further declines in value expected

“Expected impairments (depreciation in value, note) on intangible assets and goodwill will additionally burden EBIT (earnings from operating activities after depreciation),” the Pierer Mobility press release also said. The free cash flow will amount to a high negative three-digit million amount. Net debt will continue to rise.

The 2024 financial year was characterized by far-reaching restructuring measures and bankruptcies. To date, a total of more than 1,800 employees have been cut across the group. Production output was reduced in order to reduce the inventory of motorcycles at dealers and importers.

By reducing the production volume to around 230,000 motorcycles (minus 26 percent), global inventories were relieved by around 40,000 units (minus 18 percent). “This represents a first important step in the restructuring plan.”

Around 110,000 motorcycles were sold on the European market last year. Europe thus contributed 38 percent to group sales. North America accounted for 24 percent, India and Indonesia (via partner Bajaj) 21 percent and the other sales countries 17 percent.

End customer demand “strong”

End customer demand remained “strong” despite the deep corporate crisis. Sales partners and dealers sold around 268,000 motorcycles to end customers, which corresponds to the previous year’s level, according to Pierer Mobility.