Harley Davidson sales up, but shares slide at MotorCycle Holdings

New and used Harley Davidson sales were higher and revenue rose overall, but the market remains ‘challenging’.

We have continued to grow both new and used motorcycle sales across all brands, including Harley Davidson, Mr Ahmet said.

Shares in MotorCycle Holdings plunged by as much as 13.7 per cent to a six-month low on Friday after Australia’s leading motorcycle dealership said six-month profit fell 7.7 per cent in a “challenging market”.

Net profit after tax was $4.8m for the 2020 half year compared with $5.2m for the 2019 comparative six months. No interim dividend was declared.

Revenue was up 3.1 per cent to $178.2m, with chief executive David Ahmet saying the company’s strategy of growth through acquisitions and diversification was delivering increased sales and revenue.

However, servicing and repair revenue dropped by 4.7 per cent to $6m, while retail accessories and parts revenue decreased by 1.3 per cent to $37.8m.

Underlying earnings before interest, tax, depreciation and amortisation was down 4.8 per cent to $9.9m, the company said in a statement to the ASX on Thursday.

“The company completed two dealership acquisitions in the second half of 2019, both of which are outperforming expectations, and we have continued to grow both new and used motorcycle sales across all brands, including Harley Davidson,” Mr Ahmet said.

“Comparatively, our retail stores increased new motorcycle sales by 1 per cent, so we have again outperformed the overall national market and continued to grow our market share.”

Used motorcycle sales were 6.2 per cent above the comparative 2019 period, contributing to a 3.5 per cent increase in motorcycle sales overall, which includes new and used sales.

Mr Ahmet said the company planned to focus on improving productivity, reducing costs and increasing profitability of dealerships and retail stores.