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Mifa: Production Down, Margins Up

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SANGERHAUSEN, Germany – Production at Mifa dropped 11.3% during the first three months of this year, but the companys gross profit increased 11.1%. After last years loss of EUR 1.43 million, the

Mifa: Production Down, Margins Up

SANGERHAUSEN, Germany – Production at Mifa dropped 11.3% during the first three months of this year, but the company’s gross profit increased 11.1%. After last year’s loss of EUR 1.43 million, the publicly-held German bicycle producer major goal for 2008 is to gain profitability with margin-attractive orders.

The Mitteldeutsche Fahrradwerke AG – Mifa in short – total sales were 221,000 bicycles during the first quarter of 2008. Revenues totaled EUR 29.96 million which is down 10.9% compared to the same period in 2007. However, as said the company’s gross profit was up considerably with 11.1% to EUR 8.33 million. Moreover EBITDA increased compared with the previous year’s first quarter 18.3% to EUR 4.43 million. Therefore EBIT increased 20.4% while net profit reached EUR 1.75 million.

Gaining profitability

According to a Mifa press release the company forecasted the drop in production and sales. Maybe it learned from last year when its production increased 33.4% to 850,000 bicycles, but net earnings dropped. And with regard to that the press release on the 1st quarter results states that Mifa’s current major goal is it to gain profitability with margin-attractive orders.

Orders from the Biria Group that was taken over by Mifa in 2007, will only be continued if margins are up to the company’s standards. “One year after the takeover of Biria Group, Mifa is becoming much more profit-yielding and was able to keep its market position,” is finally mentioned in the Mifa press release.

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