Accell Scores Double-Digit Growth in First Half 2016
HEERENVEEN, the Netherlands – Also in the first half of 2016 Accell benefitted from its early entrance in the e-MTB market. The turnover in e-bikes increased by 39%. E-bikes are now taking as much as 43% of the total revenue. But there were also setbacks in the first half.
Accell Group recorded a 10% increase in turnover to € 629.7 million in the six months to 30 June 2016 (2015: € 573.8 million). The rise in turnover was entirely organic. Net profit in the same period rose by 7% to € 34.0 million (2015: € 31.9 million). Accell Group published these first half 2016 results today.
Negative impact of the weather
René Takens, Chairman of the Board of Directors of Accell Group: “The market conditions for the specialist retail sector were not particularly easy in the first six months of this year, as weather conditions in particular had a negative impact on bicycle sales in many countries. Despite these unfavorable conditions, we have recorded strong organic growth in the first half of 2016, largely driven by higher sales of electric bikes.”
Taken continues: “We are benefitting specifically from our leading position in the field of electric bikes, which currently account for some 43% of our total turnover. Turnover from E-performance bikes has doubled in the last six months. Turnover from bicycle parts and accessories was also higher in Europe, but we did see a slight drop in total turnover in this segment due to the sale of our North American operations.”
Major bankruptcies in North America
“Profit growth came under a certain amount of pressure in the past half year, due to lower margins on the sales of older bike ranges and extra costs incurred in connection with two major bankruptcies of multi-sports chains in North America. These bankruptcies are a clear sign of the far-reaching changes in consumer purchasing behavior, changes that we are seeing to a lesser or greater degree in many countries.”
“We therefore devoted a great deal of attention in the first half of the year to tightening our strategy and we will be giving consumers in many of the countries in which we are active a much more prominent role in this strategy. For the second half of 2016, we expect to record higher turnover and profit, barring unforeseen circumstances.”
Strong German brands
Just like in 2015, the increase in turnover in e-bikes was largely driven by the strong growth in sales of Accell’s German brands like Haibike and Ghost. Turnover from traditional bikes fell by 15%, while turnover from sports bikes was stable. Accell Group notes that; “consumers frequently purchase electric bikes to replace their traditional or sports bike. This partly explains the drop in volumes of these bikes.”
Turnover in the bicycle segment came in 13% higher at € 490.3 million in the first half of 2016 (first half of 2015: € 432.7 million). Accell Group sold a total of 908,000 bikes in the first half of 2016 (first half of 2015: 985,000 bikes). The average sales price came in 23% higher at € 541 (first half of 2015: € 439).