Hog heaven: Demand outstripping supply and profits are booming
Motorcycle Holdings has forecast a huge leap in its half-year profits but warned that it may not last.
Motorcycle Holdings has bought Mojo for up to $60m. (Photo: Harley Davidson)
The company said it expected a profit of between $26 million and $27 million for the December half-year, a 460 per cent increase on the $4.8 million for the same time last year.
The company said demand was exceeding the supply of new and used motorbikes as well as accessories and this had meant margins on sales were strong.
The Brisbane-based company said strong sales growth, improved margins and disciplined cost control had been major factors in the result but the company also received $5.8 million in JobKeeper subsidies which mitigated the impact from store closures during the Victorian lockdowns.
“The company has continued to trade strongly with sales momentum driven by the addition of new franchises to existing sites and increased customer demand in all departments,” the company said.
“Online sales saw significant growth.”
But it warned that the “exceptional trading circumstances” caused by COVID-19 and the continued uncertainty meant that people should be careful about using the current results as a guide.
Margins may also be reduced as stock supply returned to normal levels.
