E-bike Pushes Derby Cycles Profit Up by 65%
Derby Cycle AG, Germanys largest bicycle manufacturer in terms of sales, has published its first financial report for the first half of 2010/2011 after the company was stock listed last February. In the first half of the financial year 2010/2011
CLOPPENBURG, Germany – Derby Cycle AG, Germany’s largest bicycle manufacturer in terms of sales, has published its first financial report for the first half of 2010/2011 after the company was stock listed last February.
In the first half of the financial year 2010/2011 which runs from October 1 to March 31 Derby Cycle reports a rise in revenue of more than 40%, increasing from € 81.5 million to € 114.4 million. An even stronger growth was reported in terms of operating profit (EBIT), which was up by around 65% over the same period to reach € 10.5 million related to € 6.3 million in 2009/2010.
This generated a 9.1% EBIT margin in the first half of 2010/2011, compared with 7.8% in the corresponding prior-year period. This trend is primarily based on the company’s strong position on the e-bike market, as well as its ongoing internationalisation. In March 2011, Derby Cycle further strengthened its market-leading position with the presentation of the latest in-house product development, the Impulse drive for electric bikes.
Whereas total sales in the electric bikes segment amounted to around 17,000 bicycles in the prior-year period, around 39,000 units were sold in the period under review (+134%). In overall terms, approximately 244,000 bicycles from the Kalkhoff, Raleigh, Rixe, Focus and Univega brands were shipped at Group level. This represents 17.0% growth compared with the previous year’s figure of 209,000 units. The share of foreign sales increased to 32.0% related to 29% in the previous year. This underscores the success of Derby Cycle’s internationalisation strategy.
“We were able to continue last years’ success story in the first half-year”, said Mathias Seidler, CEO of Derby Cycle AG. “We succeeded in further enhancing the profitability to more than 9% compared with the same period of the previous year, which already represented a record half-year. Off course we take a particularly positive view of the fact that we were able to further extend our outstanding market position in the e-bike area, in particular.”
According to Uwe Bögershausen, the company’s CFO, the operating result also offers grounds for further optimism: “Operating growth in the first half of the year has prompted us to further specify our full-year forecast. We anticipate revenues of between € 220 million and € 240 million for the 2010/2011 financial year. At the same time we are assuming a higher EBIT margin of between 8% and 9%. As a result, the 2010/2011 financial year is developing into a further record year.”