The UK arm of the iconic motorbike brand Harley-Davidson has seen its profit surge despite a dip in revenue, thanks to a reduction in its production costs, according to newly-filed documents.
The US brand, which runs its UK division from its headquarters in Oxfordshire, saw its pre-tax profit soar to €31m (£26m) in 2023, up from €1.8m (£1.5m) in the 12 months before.
This boost was despite a slight drop in its revenue from €613m (£525m) in 2022 to €561m (£480m) last year, driven by an almost 22 per cent reduction in motorcycle wholesale volume.
Harley-Davidson reported that the decline in sales of its lower-priced Revolution Max line, which saw a 54 percent drop, was balanced by a stronger performance in its higher-priced touring bikes like the Road King and Street Glide. These premium models remained in high demand, helping offset the overall reduction in sales.
In a statement published to Companies House, Harley-Davidson said: “The directors consider the results to be satisfactory, recognising the continuing volatile economic and political environment and its impact upon retail behaviour of discretionary spend on premium products.
“The year on year decrease in turnover was primarily driven by a 21.6 per cent reduction in motorcycle wholesale volume. This was offset by a stronger relative mix of motorcycle sales.
“Gross profit increased by 78 per cent year-on-year due to reduced product costs, lower duty expenses following the release of long-term duty accruals and reduced inventory obsolescence as a result of a specific provision in 2022 for electric bikes.
“The increase in profit before tax is mainly due to the increase in gross profit, reduced IT service fees and a reduction in foreign exchange losses compared to 2022 when the weakening of GBP, EUR and RUB currencies resulted in increased foreign exchange expenses during 2022.”