Featured Operating Profit Margin Confirmed At 7% For Ducati In 2018

Discussion in 'Front Page Articles' started by El Toro, Mar 14, 2019.

    • 53,004 motorcycles delivered, € 699 million revenue and € 49 million operating profit, equal to an operating margin of 7%
    • Claudio Domenicali, CEO Ducati Motor Holding: "Our operating profit is confirmed at the end of 2018 and Ducati will continue to build on fascinating new products."
    • Oliver Stein, CFO Ducati Motor Holding: "Concentrating on high margin motorcycles maintains our qualitative operating margin level."
    Borgo Panigale (Bologna) / Ingolstadt 14 March 2019 – The end of 2018 shows Ducati to have consolidated the growth trend of the past few years for the Italian motorcycle manufacturer. 53,004 (2017: 55,871) motorcycles were delivered to clients all over the world; a result which remains over the 50,000 level for the fourth consecutive year, despite a 2.7% decrease in the global market for motorcycles over 500 cc. Conditions proved to be especially challenging in the United States as Ducati’s number one market, declining by nearly 9%.

    The end of 2018 revenue reached a figure of € 699 million (2017: € 736 million) and the operating profit was € 49 million (2017: € 51 million), with an operating margin of 7%, which is the same percentage registered in 2017. The Bologna-based company managed to compensate the reduction in the volume of sales, resulting from a decline in the market, thanks to the success of models with higher margins, such as the Panigale, which made it possible to maintain the operating profit at the same level as the previous year.

    The financial data relating to the 2018 fiscal year for the Audi Group, for which Ducati represents the motorcycle segment, were communicated during the annual press conference held at the AUDI AG headquarters in Ingolstadt.

    "2018 was challenging from many points of view, but we are satisfied with our financial performance throughout a difficult year" – declared Claudio Domenicali, CEO Ducati Motor Holding – "The company is generating the resources to continue funding the development of new products which is very positive for the future."

    Oliver Stein, CFO Ducati Motor Holding, added: "Financial stability is extremely important for the company in order to support the technological development programme which Ducati is currently involved in at full speed."

    Ducati Motor Holding currently has a total of 1,591 employees. The sales network of the Bologna-based motorcycle manufacturer includes 720 dealers in over 90 countries.
     
  1. Last 2 lines. Is el toro one of them.
     
  2. Good to see they are doing well, I hope they can continue the level of development in both the Superbikes and the MotoGP level as we are seeing some badass stuff coming out.
     
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  3. Unfortunately not
     
  4. Can someone put that ‘7% operating proft’ on some sort of comparison scale please. How does it compare to say Triumph or KTM who I guess are manufacturing similar sorts of numbers ? Andy
     
  5. I’m not much of a buisness man, but 49 million before interest or tax deductions doesn’t seem like much. Maybe I’m just used to the IT industry’s big expectations.
     
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  6. 7% in manufacturing is half decent. Supermarkets I believe work on about 2-3%
     
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  7. 10% is the big goal for many like us. This is net profit so gross on each bike would be around 25%
    Water companies in this country make 30%+ ...incredible how they get away with it. Gross profit must be 70% plus or take cost and multiply by 4
     
  8. High margins on the panigales, explains a lot :)
     
  9. Well done for adding revolutionary systems into the biking market Ducati. Alongside with BMW they are bringing a safer experience too modern motorcycling. I'm still waiting on nightvision visors or heat sensitive displays for night-riders...a floating speed display would be nice shown in the wind-deflector!!
     
  10. It's all about cashflow (sales volume). If you can generate enough cash you can set about converting that cash into profit (cost cutting, higher margins etc.) You can't have profit without cash; you can have the most profitable business in the world but if you can't generate sufficient cash through sales to keep afloat in the meantime - BANG!
    This is why companies such as Norton continually chase deposits.
     
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  11. When they same 'high margins on Panigales' does that mean its the same percentage but a larger price tag than say the Scrambler or is it also a higher percentage I wonder?
     
  12. It's a larger profit margin. I.e. the difference between the cost of productivity per unit and the sale price per unit, expressed as a %age. So yes, a higher %age.
     
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