Vmoto Ltd (ASX:VMT) continues the upward sales trend of its ‘green’ electric-powered two-wheel vehicles with September quarter sales of 3,100 units being 8% greater than the previous quarter.
The company is confident of enhancing sales growth with firm international orders received during the quarter for 2,347 units, up 73% on the previous quarter.
At 30 September 2018, Vmoto had international orders, secured by deposits, for 2,574 units scheduled for delivery in the current quarter.
New exclusive distributors
Growth is expected to be supported by the appointment of new exclusive distributors, including Urban Moto Imports Pty Ltd (UMI), which enabled the launch of the Super Soco brand into Australian and New Zealand markets.
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UMI is a specialist premium motorcycle importer and distributor for MV Agusta, Bimota, Benelli, Gas Gas, Royal Enfield and Peugeot motorcycles, and has been very successful in Australian and American markets.
The company’s distribution network has also expanded further in Europe and South America, with exclusive distributors appointed in Belgium, Luxembourg, Poland and Chile.
Vmoto now debt-free
This month Vmoto has repaid its bank operating facility in full.
The result is that the company is now debt-free with RMB25 million, or about A$5 million, available for redraw from the bank operating facility.
Vmoto is continuing to focus on increasing sales of its high-margin, high-value electric two-wheel vehicle products internationally, and primarily in Europe.
Healthy forward orders expected
The company expects to receive healthy forward orders for its B2B E-Max electric delivery vehicle and its B2C Super Soco vehicle products from its global distribution network.
A Super Soco TS used by police in Guatemala for patrol duties.
In the September quarter, there were 2,729 units sold internationally, which was 13% higher than the corresponding quarter of 2017 but 2% lower than the previous quarter.
This is attributable to the expected impact of the European holiday season in August.
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Increasing European interest was the primary focus of the company’s attendance at the Intermot International Motorcycle, Scooter and E-Bike Fair in Cologne, Germany, earlier this month.
Significant sales leads were secured and increased orders via existing and new distribution agreements in Europe are expected to flow in the near future.
Vmoto showcased new Super Soco electric two-wheel products at the Intermot Fair in Germany.
The company’s distributors have also participated in several recent marketing events promoting both Super Soco and E-Max electric delivery scooters.
These included the Total Bike racing event in Hungary, the Motor Show exhibition in South Korea and Exhibicion de Motos Electricas in Uruguay.
Vmoto’s distributor participated in the Total Bike event in Hungary with a Super Soco TC.
European subsidiary established
Vmoto has recently expanded European operations by establishing a wholly-owned European subsidiary and a warehouse to accelerate sales into European markets.
The company is now able to provide direct support to its European distributors and provide more confidence to potential customers with its local presence and after-sales service.
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Some delays have been experienced in European homologation for the new Super Soco CU-X model and this may impact on Vmoto’s forecast sales for 2018 financial year.
This process involves complying with European standards.
The company expects homologation next month, but European quarterly sales depend on the exact timing of compliance and lead time to then manufacture, ship and invoice a backlog of CU-X orders.
Vmoto is confident that any delays caused by the process will create a timing issue only and any forecasted CU-X units not shipped to Europe by the end of 2018 will be shipped and invoiced in quarter one of 2019.