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Accell 2004 Results: Big Ups in P&A and Fitness

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BIKE EUROPE: HEERENVEEN, The Netherlands (February 24) – Accell Group NV produced and sold about 865,000 bicycles in 2004; up 7.5% on the total for 2003. Bike sales last year contributed only for 9.3% in the growth of the company. Better results were booked with Parts & Accessories and Fitness machines which was also caused […]

BIKE EUROPE: HEERENVEEN, The Netherlands (February 24) – Accell Group NV produced and sold about 865,000 bicycles in 2004; up 7.5% on the total for 2003. Bike sales last year contributed only for 9.3% in the growth of the company. Better results were booked with Parts & Accessories and Fitness machines which was also caused by takeovers in 2004. Accell Group earned in 2004 € 275.0 million with bicycles (up 9.3%); € 44.7 million (up 68.0%) with P&A and € 21.4 million (up 89.4%) with Fitness. Total turnover was € 341.1 million; an increase of 17.8% compared to 2003. Organic turnover growth was 7%. Net profit came in at € 13.0 million, up 42%. The positive performance was driven partly by consumers’ continuing interest in healthier lifestyles and active recreation. In addition, a good sales mix and improved margin also contributed to the higher results.
About the bike market in 2004 the Accell press release states: “Consumers are making increasingly sharp choices between price and quality. This means that, in the bicycle trade, there is a visible trend towards lower and higher priced bicycles, increasing market share at the expense of mid-range bicycles. The average price per bicycle paid by the consumer remains stable at € 318.”
René Takens, Chairman of the Executive Board of Accell Group: “In 2004, we once again showed that our brands strategy is a success. Next to the consistent brand strategy, close cooperation with bicycle retail specialists’ channel remains very important. Despite the increase in the number of sales channels, the specialist retailers continue to play a decisive role in the sale of high-quality products. On that basis, we will continue in years to come to respond to one of the most durable consumer trends of our times, ‘healthier living and more exercise’. In 2005, we expect to once again realise growth in turnover and in earnings per share.” (JO)

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