Derby Cycle Revenues Up Despite Slow Market
Derby Cycle AG grew its revenues to €219.8 million in the first three quarters of FY 2011/12, compared with €198.8 million in the previous year. Earnings before interest and taxes (EBIT) were affected by special one-off effects and a weak spring due to weather conditions.
Mathias Seidler, CEO of Derby Cycle AG, regards the corporate strategy as being confirmed by the results that were achieved: “Since April, the entire bicycle sector has had to struggle constantly with a rainy spring and low temperatures. Despite a corresponding downtrend in sales among specialist dealers, we report further year-on-year growth in both revenues and operating earnings.”
E-bike sale increased
“We grew our sales both in Germany and on all target markets outside Germany. Although, with totaling 395,000 units we sold around 4.4% fewer bicycles than in the previous year, the number of electric bikes was up by 21.8% to around 89,000 units. Despite this positive trend, overall third-quarter growth rates nevertheless are at the lower end of our expectations due to the late start of the summer weather in Germany.”
Reiner Brüls, CFO of Derby Cycle AG, went on to add: “Overall we are satisfied with the current business development. Our operating profit (EBIT) is up 9.4% to the previous year to EUR 20.9 million. In this context, the EBIT was burdened by sales lower than planned and special one-off effects. We also notice this trend for the full 2011/12 fiscal year.”
For the current 2011/12 fiscal year, the company expects revenues at the lower end of its existing forecast of between EUR 250 million and EUR 270 million. The expected EBIT margin for the 2011/12 fiscal year will presumably be between 7% and 8%, contrary to the previous forecast of between 8% and 9%.