E-Bikes Push Accell to Milestone in Revenues
HEERENVEEN, The Netherlands – While others suffer from disappointing 2016 results Accell Group once again profited from the leading position it holds with e-bikes. Sales of, in particular e-MTBs, were up 33% while the holding company’s overall turnover was up 6.3%. With that Accell reached a new milestone in its history as it broke the one billion euro mark in 2016.
With today’s published financial results the company also announced a refined strategy with new objectives for the medium term. This trade journal will report in detail on that refined strategy later.
Accell Group’s financial key performance indicators show the following results; net turnover came in at € 1.05 billion while its operating result amounted € 65.9 million; 5% plus compared to 2015. The company’s net profit didn’t show significant growth and stood with € 32.3 million, at the same level as in 2015. What the holding company concentrated on since almost two years and for which it appointed a chief supply officer some one and a half years ago is paying out. The goal of CSCO Jeroen Both was to bring back stocks and the money that goes into that. It resulted in working capital decreases to 29.2% of the turnover. All this made that Accell’s Return on Capital Employed ROCE increased to 12.2% in 2016.
70% growth in e-MTB turnover
Accell Group’s CEO René Takens said about the 2016 results “One of the main drivers of our turnover record of over one billion euro was the constantly growing contribution from e-bikes and bikes in the higher segment of the market in particular. We are clearly benefitting from our leading position in the field of e-bikes, which recorded turnover growth of 33% and now represents 41% of our total turnover. Turnover in e-performance bikes increased by 70% in 2016. Germany is the biggest driver behind the turnover growth. We are also seeing an increase in turnover from e-bikes in North America.”
“There too we are market leader with our brands, including Haibike, in what is still a limited market with a large number of suppliers. The position of the Raleigh brand among specialist retailers in North America continued to decline in 2016, and we have therefore decided to distribute the brand via multiple channels. Consumers can now buy our products both via specialist retailers and online. Turnover in bicycle parts and accessories in Europe remains stable, and our own XLC brand is constantly gaining ground.”
Switch to omni-channel approach
The Accell Group CEO commented further “Our profit was impacted by lower margins on the sales of older bicycle collections, the fact that we did not charge on higher currency exchange rates and two major bankruptcies of multi-sports chains in North America. We see these bankruptcies as confirmation of changes in how consumers are choosing to shop. This change in behaviour played a key role in our decision to refine our strategy, in which we are focussing firmly on consumers. We will use an omni-channel approach to market our products and services in a way that forms the best possible fit with the purchasing preferences of individual consumers.
“Working capital decreased significantly and we are seeing the benefits of a more centrally-managed supply chain on this front. We expect to be able to further reduce our working capital in the coming years.”
Accell CEO Takens presented for the last time the financial results of his company earlier today. With the refined strategy and the company’s new objectives for the medium term he sees this as the moment for new leadership to take-over and to see that strategy successfully implemented. Takens will say goodbye to his many business relatives as well as the company’s suppliers at the upcoming Taipei Cycle Show. Next to that he will stay on as CEO up to the next shareholders meeting in April and after that stay involved in Accell Group at least to the end of 2017.