- Growth in Sales by 14.4% to 400.9 million EUR
- EBIT increased by 33.4% to 26.1 million EUR
- Equity capital ratio of 39.0%
- Sales increase in on-road segment
The first three quarters of business year 2006/07 were influenced by a significant increase in sales and profit. Compared to the previous business year, sales have risen 50.4 million EUR to reach 400.9 million EUR, the EBIT increased by 33.4% from 19.5 million EUR last year to 26.1 million EUR.
„An increase of 10% in volume compared to last year has been crucial for the pleasant results, the increased demand for higher quality products as well as the increased sales of OEM engines and KTM’s related products and parts, equipment and gear“, states Stefan Pierer, CEO of the KTM Power Sports AG.
Best Q3 performance since KTM went public in 2003 In the frist three quarters 2006/07, gross margin rose by 10.1% to 130.7 million EUR whereas overheads increased by 5.5% to 104.7 million EUR compared to the previous year. Gross margin, adjusted by the effects of the change in sponsorship and promotional income in the current business year, rose by 15.6% and the overheads rose by 11.9%.
Due to the decrease of the financial and participation results to –6,3 million. EUR, the profit of the period could be increased by 29.8% to 15,1 million EUR. The free cash-flow in the amount of –23.7 million EUR results from a major increase in investments and the periodically contingent increase of the working capital.
Sales increase in on-road segment Due to the market introduction of the 690 Supermoto, the 990 Super Duke and the new R-Models, sales could be increased in the on-road segment. The newly developed LC 4 1-cylinder 4 stroke engine applied in the 690 Supermoto model is highly accepted in the market. Upon the pleasant reactions to the sports concept car “X-BOW”, a business case for the series production has been developed. The projected units for business year 2006/07 have already been ordered in the third quarter.
Constant development on the capital market In the first three quarters of the business year 2006/07, the KTM share traded between 44.00 and 59.00 EUR and closed at 52.03 EUR by May 31st, 2007. Market capitalization of the around 6.9 million shares outstanding reached 358.6 million EUR as per May 31st, 2007. Main shareholder of the KTM Power Sports AG with more than 50% of the voting rights is the CROSS Industries AG.
Preview The presentation of the new Enduro Racing two-stroke and four-stroke engines, which meet Euro 3 requirements shall further boost growth for the fourth quarter 2006/07. All foreign exchange risks, except for parts of the US-Dollar exposure, were hedged for 2006/07. Also for business year 2007/08, all relevant exchange rate risks have been hedged to a large extent.
The Board expects a two-digit growth rate for the entire year 2006/07. The impulses given in the current year shall further sustain the successful business development in the year 2007/08.