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Derby Cycle Reports Strong Growth in Q1 2010/2011

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Derby Cycle AG, Germany’s stock-listed and largest manufacturer of bicycles in terms of sales, has published its financial report for the first quarter of the 2010/2011 financial year, ending December 31, 2010. Revenue increased to

Derby Cycle Reports Strong Growth in Q1 2010/2011

CLOPPENBURG, Germany – Derby Cycle AG, Germany’s stock-listed and largest manufacturer of bicycles in terms of sales, has published its financial report for the first quarter of the 2010/2011 financial year, ending December 31, 2010.

Revenue increased to €37.8 million during the period under review, representing 30.5% growth compared with the corresponding prior-year period (€29.0 million). EBIT was up by 52.3%, thereby outstripping the rate of revenue growth. EBIT amounted to €1.9 million in the first quarter (comparable prior-year period: €1.2 million). As a consequence, the EBIT margin improved from 4.3% in the first quarter of the 2009/10 financial year to 5.0% in the first quarter of the 2010/11 financial year.

Consolidated net income was up by 28.4% from €0.8 million in the first quarter of the 2009/10 financial year to €1.0 million in the first quarter of the 2010/11 financial year. Due to pre-ordering, the October to December months in the bicycle sector traditionally comprise a weaker quarter in terms of sales, and consequently earnings, compared to the January to June months, in other words, the second and third quarters of Derby Cycle’s financial year.

Through its five brands, Kalkhoff, Raleigh, Rixe, Focus and Univega, Derby Cycle sold a total of 80,500 bicycles in the 2010/2011 first quarter (+5.8% compared to the prior-year period). Around 11,000 electric bicycles were sold in Germany between October and December 2010 (+139% compared to the previous-year period). A total of 1,700 electric bicycles were sold outside Germany (+91.4% compared with the prior-year period).

Sales abroad continued to rise at a disproportionately fast rate. Revenue generated outside Germany was up by 53.1%, from €8.1 million to €12.3 million. As a consequence, the foreign share of revenue climbed from 27.8% in the first quarter of the 2009/10 financial year to 32.6% in the first quarter of the 2010/11 financial year.

"We are on track – as shown by the first-quarter figures," commented Mathias Seidler, CEO of Derby Cycle AG. "We continue to report strong growth – and also profitable growth. This should continue over the course of the full year, especially where electric and sports bikes are concerned. The strategy we have adopted of focusing our sales through specialist wholesalers and retailers, the expansion of our good positioning in the electric bikes area, and our continued internationalisation, continues to bear fruit."

Due to orders that are already on hand or that have been notified, Derby Cycle anticipates that the positive trend will continue over the full 2010/11 financial year with respect to both consolidated revenue, and consolidated earnings before any effects arising from the IPO.

The company will publish a more specific forecast over the further course of the current financial year.In fiscal year 2009/2010 Derby Cycle recorded revenues of EUR 173 million with an average of approx. 550 employees. Of this figure, it recorded 72.6% in Germany and 27.4% abroad. Derby Cycle sold a total of around 430,000 bicycles last fiscal year, including around 44,000 e-bikes.

 

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