Accell Group profit up 11 % in 2010

AMSTERDAM, the Netherlands – Today the Executive Board of Accell Group NV, with René Takens, Chairman (middle on photo), CFO Hielke Sybesma (left) and COO Jeroen Snijders Blok, announced that Accell Group N.V. recorded a rise in turnover and net profit in 2010. Turnover rose by 1% to € 577.2 million, from € 572.6 million in 2009.

Poor weather conditions for bike sales in the fourth quarter and adverse exchange rate effects led to a drop in the operating result in the second half of 2010, compared with the same period of 2009. However, tax benefits and lower interest charges resulted in a rise in net profit of 11% to € 36.4 million in 2010, compared with € 32.7 million in 2009.
 

René Takens, Chief Executive Officer of Accell Group says: “We can be reasonably satisfied with our overall performance in 2010, against the background of exceptionally poor weather conditions in 2010 and volatile exchange rate developments around the time of the changeover of bicycle collections in the summer. The drop in turnover was limited in the second half of the year, though turnover remained unexpectedly strong below our original expectations."

Takens continues: "Our companies were partly able to charge on the increases in exchange rate of the US dollar and Japanese Yen from April 2010 in new sales prices, although the price increases were received more positively in some segments than in others. In bicycles, last year once again saw greater sales in electric and sports bikes, while sales in city bikes were down. We noted the largest increase in turnover in parts and accessories. Once again the value of our strong brands and innovations, as well the importance of our well diversified product segments and geographical presence were revealed. This diversity allows us to respond relatively quickly to changes in the market."

We have now completed the acquisition of the Turkish firm Bianchi Bisiklet (now named Accell Bisiklet) and the 50% participation in the Italian company Atala. Barring unforeseen circumstances, we expect a further rise in turnover and result for 2011.”

Key developments in 2010

The weather conditions made 2010 an unfavourable year for bicycle sales. The long winter led to a late start to the bicycle season. May and August were very wet months and the low temperatures and snow also made the fourth quarter an unfavourable period for bicycle sales. The general economic conditions and the price increases also affected sales. The overall turnover in bicycles dropped slightly. However, sales of high-grade electric bikes and sports bikes increased once again. A clear rise in sales was noted in parts & accessories, both organically and via small-scale acquisitions, while we noted a slight drop in the sale of fitness equipment.