LISTED Australian motorcycle company Motorcycle Holdings (MTO) has posted double-digit increases in profit and revenue in its first half-year, including a 43 per cent jump in net profit to $9.4 million.

The six month result also showed revenue up 12 per cent of $328 million, with the company attributing it to increases in new and used vehicle sales and a 17 per cent growth in its wholesale distribution businesses.

Gross profit was up 10 per cent to $82.8 million; EBITDA increased 20 per cent to $26.2 million; and return on sales was up 19 per cent to 5 per cent, from 4.2 per cent in the previous corresponding period. It will pay an interim dividend of 8 cents a share fully franked, compared with 3c/share in the first half of FY2024.

Motorcycle Holdings’ CEO Matthew Wiesner said the result was driven by “business improvement, the completed integration of Mojo’s New Zealand operations into Forbes and Davies, and improvements to Cassons’ business systems.” 

“It speaks to our successful diversification strategy, incremental performance improvements across the network, and improved operational efficiencies,” he said in his report to the Australian Securities Exchange (ASX).

“Revenue was up across all departments, with new wholesale vehicles up by 21 per cent, and both new and used retail vehicle sales up 11 per cent.

“Retail parts and accessories, servicing and repairs, and finance and insurance commissions also reported increases in revenue.”

He said the new vehicle market was up 2 per cent in sales (motorcycles and related vehicles) while MTO reported a 7 per cent increase in new retail unit sales for the same six-month period.

MTO introduced new CFMoto motorcycle models during the half year which the company said had “outperformed expectations.”

It had also introduced the new electric motorcycle brand Surron through its subsidiary Mojo.

Matthew Wiesner

In his outlook, Mr Wiesner said the company was ready to capitalise on emerging opportunities “with a new leadership team bringing energy, focus and a clear vision for the future.”

“Our strategic priorities are centred on building a robust structure to sustain growth well beyond 2025,” he said.

“Motorcycle Holdings is looking forward to continuing to build momentum and drive further value for shareholders.”

Mr Wiesner said he expected “more favourable” agricultural conditions to “positively impact” sales although, on a negative, said that wholesale distribution “faces margin risk due to currency rate decline” between the Australian and US dollars.

In the report to the ASX, MTO said it would also “evaluate potential business acquisition opportunities as they emerge” and is targeting further growth in used vehicles, increased ratio of used-to-new sales.