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MIFA sells 70% more e-bikes

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SANGERHAUSEN, Germany – Stock listed bicycle manufacturer MIFA increased its revenue to 97.6 million euro in the first nine months of 2012, up 4.5% on the prior-year period.

MIFA sells 70% more e-bikes
In March 2012, MIFA acquired Berlin-based e-bike manufacturer GRACE and took over Munich-based bicycle producer Steppenwolf in August 2012. The production of both brands was completely transferred to Sangerhausen.

Adjusted for these extraordinary factors like the 2.7 million euro investment in the production facility, EBITDA amounts EUR 7.4 million and was on a par with the previous year. This represents an adjusted EBITDA margin of 7.6% (30 September 2011: 8.0%).

Less units, more revenue
In number of bicycles sold MIFA saw a decline of 17.7% to 500.000 units related to the same period in 2011. Still MIFA managed to expand its turn-over substantially thanks to the high value e-bikes. At 25.9 million euro they now represent 26.5% of the company’s revenue, almost twice as high as in the prior-year period.

The number of e-bikes sold rose by almost 70% to around 42,000 related to 25,000 units in 2011. The average price of these e-bikes is almost four times higher than those of conventional bicycles. Across the entire product range, the average price per bicycle was around 27% higher than in the previous year.

Acquisitions
In March 2012, MIFA acquired Berlin-based e-bike manufacturer GRACE and took over Munich-based bicycle producer Steppenwolf in August 2012. The production of both brands was completely transferred to Sangerhausen.

“The substantial increase in revenue underlines that our strategy is working”, said MIFA CEO Peter Wicht. “We are systematically expanding sales of high quality e-bikes and bicycles for specialist retailers, but also maintaining our ‘bread and butter business’ with retailing as a strong basis. The two successful acquisitions in the premium segment, gave us powerful brands and a broad sales network in specialist retailers as well as specialist’s know-how in marketing and development.”

Automotive industry
“Orders from the automotive industry are an important element in our strategy”, said Michael Hecken, Head of Marketing and Strategy at MIFA. “The facility which we developed this summer for the production of our premium e-bikes sets new standards in the bicycle industry. And it also opens up completely new opportunities as more and more industry customers are now approaching us for OEM orders.”

According to Peter Wicht, 2012 represents a clear watershed year for MIFA: “Over the first nine months of the year, we have completely realigned our business. This paved the way for sustainable and profitable growth in the years ahead. Therefore we are cautiously making a medium term forecast for the future, for the first time in MIFA’s recent history. Our aim is to double our annual revenue in the coming four to six years to 200 million euro compared to 2011.”

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