Ducati proves to be a solid and profitable company with a positive cash flow even in a complex year like 2020 48,042 motorcycles delivered, € 676 million in turnover and € 24 million in operating profit, equal to 4% of operating margin The strategy of shifting upward the product range pays off as turnover per motorcycle grows again in 2020 Claudio Domenicali, CEO of Ducati Motor Holding: "Even in the difficult 2020 Ducati remained profitable with a very positive cash flow, the best ever recorded to date." Oliver Stein, CFO Ducati Motor Holding: "Financial stability is extremely important to support technological development, product and process innovation and Ducati Corse activities." Borgo Panigale (Bologna, Italy), 18 March 2021 – Ducati closes a challenging 2020 reinforcing the solidity that the Italian motorcycle manufacturer has demonstrated in the last years. Despite the complex global situation and the seven-week halt in production right at the peak period of the season, 48,042 (2019: 53,183) motorcycles were delivered to customers all over the world, limiting the sales gap compared to 2019 to -9.7%. The end of 2020 revenue reached a figure of € 676 million (2019: € 716 million) and the operating profit was € 24 million (2019: € 52 million), with an operating margin of 4%. Sales growth trend compared to 2019 was observed in China (+26%), Germany (+6.7%) and in Switzerland (+11.1%). Italy remains the first market for Ducati, followed by USA. The turnover per bike figure has grown to € 14,883/motorcycle (2019: € 13,500), representing the highest value ever reached in the history of the Company. This consistently reflects the strategy of evolving the product range towards the highest and premium part of the market. Claudio Domenicali, CEO Ducati Motor Holding, declared: "2020 was indeed a challenging year but we are satisfied with our financial performance throughout. Thanks to rigorous discipline, we were able to reduce fixed costs thus limiting operating margin drop. At the same time, vastly reducing inventories had positive effects on cash flow, which is the best ever recorded to date. Investments in new products were fully untouched and this paved the way for a positive development of Ducati in the future. A heartfelt thank you goes out to the women and men of Ducati who, every day, with passion and dedication, contribute to the company's strength and success even in this very complex and tough year." Oliver Stein, CFO Ducati Motor Holding, added: "Financial stability is extremely important for the company to support its technological development, product and process innovation programmes, along with Ducati Corse department activities. A solid financial foundation guaranteed us to maintain these important pillars also in these challenging times. We are glad that we were able to guide Ducati through such a complex situation in 2020 and we start the 2021 with a trusting attitude to recover clearly faster than originally anticipated." Strengthened by the results achieved so far thanks to the continuous support of its working women and men, Ducati is ready to face the new year with energy and enthusiasm. In 2020, the Italian motorcycle manufacturer has again confirmed to be one of the most attractive employers, achieving the Top Employer Italy certification for the seventh consecutive year. Over the past year Ducati, that counts 1,800 employees, was able to respond quickly to the evolving situation imposed by the pandemic in terms of working arrangements. Already from the beginning of March an internal task force was set up, bringing together inter-divisional skills to ensure method, sensitivity, constant and transparent communication with employees. Several initiatives were put in place to support workers and their families, such as maximum flexibility of working hours and help in finding home care services for children and the elderly through the company's Welfare platform. The Ducati sales network consists of 738 dealers in over 90 countries. Deliveries of the new range will begin in 2021, including the Ducati Scrambler Desert Sled Fasthouse and the new Monster, the motorcycle that represents all the essence of Ducati in the lightest, most compact and essential form possible. The new Multistrada V4, SuperSport 950 and the Ducati Scrambler Nightshift are already available worldwide at Ducati dealers. Starting in March, Ducati will take part again in the MotoGP World Championship, building on the victory of the MotoGP Constructors' World Title earned in 2020. Ducati will participate also in the Superbike World Championship, which will begin in May.
Not having a go here at the OP but another master class in Market speak • 24 Million on 676 isn’t 4% its 3.55 • Positive cash flow means they reduced stock and extended terms with their vendors while probably dumping bikes on dealers • I would love to know if “growth observed” means they saw annual growth. Along with "sales growth trend" • Turnover per bike shall always increase when you put your prices up each year, unless you bring out a moped Key to reading these things are; Have they grown turnover –no down by 9.7% Has profit grown – no down I know, considering the climate its OK …any I should be picking mine up next month ;-)
its a hard way to generate a sub 4% opmargin but i expect its reasonable compared to its peer group? why would you want to be a shareholder?
Yep back in the 90's I used to get that- "We could sell the company and get 5% on deposit" do it then was my reply You get 0.05% now
I know nothing about big buisness but 4% is what most landlords expect to get in return on investment. Seems a thin margin for a lot of effort.
Very astute operator is Ing. Domenicali. Which is why he’s CEO and I’m just an old snob. I brought my first Duke brand Spankers in 1990 (900SS) when Bologna flogged 10k bikes a year (on their way back from govt ownership through the Paso and 750 Sport). All the while thereafter they remained purist focused on what had always saved them in the past: racing success (helped by a heavily assisted rulebook endorsed by an Italian run ‚world‘ series, back in the Foggy heyday. 33% cc capacity augmented by a 25kg weight advantage anyone?). Sorry, locked down pissed. Ducati has done 50k unit pa forever now. They’re sharp. Keep winning on track, and keep the product range narrow enough to reflect that prestige. Don’t chase volume, that’s a death wish. Just refine the profit margin with steady growth. WV ownership? Doubt it’s altered Bologna‘s modus operandi much at all.
I wouldn’t read too much into that, that figure is the publicly announced one that the tax man reads Out of the turnover figure there will probably have been dividends paid to shareholders, expenditure to their racing devision, expenditure to R&D, management fees to VW/Audi, Pension fund, probably some dept write off against another subsidiary etc, etc. It certainly doesn’t mean a £20k bike costs £19,200 to manufacture, if it does then they’re fucked!
Well no of course it doesn’t. The government takes a huge slice. In fact usually whenever I’ve looked at any motor business the factory product price isn’t far off half the showroom price. That’s very roughly. If you do the maths, yes maths with an ‘s’. Rounding off for ease to 48000 bikes, €24m profit divided by 48,000 bikes= €500 profit per bike. Yes that’s declared, some lines will be more profitable than others of course but when you look at it like that, it’s a lot of effort for a slim margin.
And typical for the motor industry, who make the real money in finance, servicing, aftermarket parts etc
