News

BIKE EUROPE : AARSLEV, Denmark (October 28) - Denmark's largest bicycle maker, Børge Kildemoes Cykelfabrik A/S had a very good year in 2003. Net profit after tax reached DKK 13.3 million (Eur 1.7 million), and the turnover exceeded DKK 196 million (Eur 26.3 million). These results continues the trend that Kildemoes has shown over the last years, starting out with a net profit after tax of DKK 6.5 million (Eur 874.000) in 2000, which has now increased to 13.3 million (Eur 1.7 million) in 2003. In 2002, the Kildemoes factory produced some 90,000 bicycles. For 2003, the figure has gone up to 100,000. A large number of these bicycles are sold in Sweden. This is because of Cycleurope's strategy, where the producing units in each country make the bicycles they are best at. Obviously a very good and cost-effective strategy, which means that some bicycles sold under the Kildemoes brand are actually produced in Sweden, whereas the Danish factory produces Monark bicycles. Strangely enough, Kildemoes actually sold slightly fewer bicycles on the home market in 2003, but earnings per bicycle were higher. This was because Kildemoes managed not to have too many old model bicycles in stock at the end of the season, thus avoiding having to reduce prices on these old models. See the November issue of Bike Europe for a market report Scandinavia (JT)