AMSTERDAM, The Netherlands - Accell Group NV announced earlier today that it recorded a net profit of € 27.5 million in the first half of 2014, a rise of 13% compared 2013. Turnover was up 4% to € 506.2 while operating profit rose by 7% to € 38.2 million.
CEO René Takens noted: "We enjoyed a good first half in terms of turnover and sales, partly due to favourable weather conditions in Western Europe, where we book more than half of our turnover. The growth in demand for electric bikes and high-end sports bikes was particularly strong. We improved our profitability as a result of a better product mix and cost reduction, due to the previously announced reorganizations in the Netherlands and North America."
Limited rise in turnover
Takens furthered: "We were also able to make a substantial reduction in our working capital utilization, which in turn reduced our financing costs. In Germany, our second home market, we further sharpened the focus of our brand portfolio through the divestment of Hercules, which will enable us to concentrate even more clearly on the differentiating potential of our other German brands Winora, Ghost and Haibike. Partly due to the loss of the Hercules turnover, the total rise in turnover was limited in the first half 2014, but organically turnover increased by 4%."
"Turnover in electric bikes once again increased significantly in the Netherlands and Germany. In the course of the current bicycle season we also launched new electric bikes in France, the United Kingdom, Italy and the United States. We will be adding even more models to our ranges in these countries in the new 2014-2015 bicycle season."
More on Accell's results for the first half of 2014 will be in Bike Europe's July 29 email newsletter.