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E-bikes Drive MIFA’s Business

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SANGERHAUSEN, Germany – Booming demand for e-bikes boosted MIFA’s revenues in 2012. With 47,000 units, the German bicycle manufacturer sold around 75.6 % more electric bikes last year than in 2011. At the same time, the average sales price per e-bike increased by 52.2 % to € 711.

E-bikes Drive MIFA’s Business
In contrast to the growing e-bike production, MIFA's sales of conventional bicycles decreased substantially. - Photo MIFA

The revenues generated with e-bikes consequently rose to € 33.4 million in 2012 from €12.6 million in 2011. E-bikes have become the main business for MIFA with revenue share of no less than 30% of the total 2012 revenues of €111.3m.

Conventional bicycles
In contrast to the growing e-bike production, sales of conventional bicycles decreased substantially. In 2012 MIFA sold 499,000 bicycles, a decline of 19.2%. According to MIFA, this double digit decline is the result of bad weather conditions in spring 2011 causing a weaker demand for bicycles.

MIFA’s decline in units is also the result of the company’s policy to focus on margins and not on mass production. Thanks to the higher average sales prices for conventional bicycles, revenues in this area consequently fell at a slower rate of 14.7 % to €73.6m.

Successful acquisitions
“We regard 2012 as a year of the new start as we made decisive strategic preparations for our future growth”, commented MIFA CEO Peter Wicht. “The acquisition of Berlin-based e-bike manufacturer Grace in March followed by the takeover of the Bavaria-based cult bicycle company Steppenwolf in August 2012 were very successful.”

MIFA’s gross profit margin was stable compared with 2011 at 32.7 % despite the extraordinary expenses for the relocation of the Grace and Steppenwolf operations to Sangerhausen.

‘Retain our core business’
“Our aim is to double our revenues to €200 m in the coming four to six years”, said Peter Wicht. “Grace and Steppenwolf are already broadly represented among specialist dealers. In the future we want to widen our presence in the high-margin sales channel – also and especially with e-bikes. In doing so, we will retain our core business, the sale of bicycles to wholesalers and retailers, as an essential element of our strategy.”

“Our premium brands Grace and Steppenwolf will benefit from our high level of production and logistics’ automation as well as our high quality standards. In addition, volume effects in purchasing and production impact all our brands positively. We also anticipate further growth impulses from our business with industrial customers. The e-bikes marketed by automotive manufacturer Smart are manufactured at Sangerhausen since September 2012”, said Peter Wicht.

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