Pon 2011 Annual Report: Bike Sales Still Very Modest
Its recently published annual report shows that Pon Holdings generated a turnover of just over 32 million euro with the manufacture and sale of bicycles in 2011. In relation to the 5.9 billion euro turnover of the entire Pon group, the size of the bicycle division is still extremely modest and amounts to about…
ALMERE, the Netherlands – Its recently published annual report shows that Pon Holdings generated a turnover of just over 32 million euro with the manufacture and sale of bicycles in 2011. In relation to the 5.9 billion euro turnover of the entire Pon group, the size of the bicycle division is still extremely modest and amounts to about 0.005% of the company’s total turnover.
The relatively low level of the bicycle division’s turnover is caused by the fact that Gazelle’s turnover for the whole of 2011 was not included in the total group-turnover. On June 23, Pon Holdings concluded the acquisition of Gazelle but its turnover was only included in the books later that year. In 2010 Gazelle recorded a turnover of 134.5 million euro and an operating loss of just over 4 million euro. This resulted in 2010 in a heavy net loss of up to 17.7 million euros caused by considerable goodwill and interest payments to the former owner Gilde.
Derby Cycle, Cervélo
The 2011 bike sales of Pon Holdings also do not include the revenues of the two other bicycle manufacturers which are part of the Almere, the Netherlands based Pon Bicycle Group. The turnover of Derby Cycle is not in the 2011 books. The offer for all shares of the largest bicycle manufacturer in Germany closed mid-November 2011 so that the actual acquisition took place in 2012. The Canadian bicycle manufacturer Cervelo was incorporated in February 2012.
The 2012 balance sheets of Pon Holdings will show a completely different picture when the bikes sale figures of the three bicycle companies are included. It will make a huge leap as it will amount over half a billion euro and the contribution to the group’s turnover substantially at nearly 15%.
It is also interesting what the annual report says on the reasons for Pon to invest in the bicycle industry. It reports: “Another important milestone is the formation of our new Pon Bicycle Group. Our decision to invest in this industry was based on the interesting prospects for the international bicycle market which is fuelled by ageing population, environmental concerns and increased attention for health and lifestyle. Particularly as a consequence of the introduction of the E-bike, we expect this growth to continue in the coming years.”