Long Winter Doesn’t Harm Accell in 1st Quarter
HEERENVEEN, The Netherlands – Despite the long winter in Europe Accell Group NV managed to increase its profit and revenue in the first quarter of 2013 compared to the same period last year.
The sales growth was achieved both organically as well as through Raleigh which take-over was completed in May, 2012. This was announced today by the biggest bike maker in Europe without mentioning financial details.
“The first months of the year have shown us that the general bicycle trends are still positive,” said CEO René Takens. “However, the long winter period and reluctance in willingness to buy among consumers has resulted in a late start of the bicycle season and lower than expected sales.
Maintain 2013 outlook
“There remains a lot of interest for electric bicycles, especially in Germany,” continues Takens in the Accell press release. “Regarding the sports and traditional bicycles we expect to catch up on the lag in supply in the coming months. We therefore maintain our outlook for 2013 and expect a further increase in turnover and net operating profit, barring unforeseen circumstances.”
Accell’s press release on the first quarter results also stipulates that, next to the turnover in bicycles, also components and accessories increased while revenues of fitness equipment sales dropped. The average price per bicycle increased in organic terms.
Other recent developments at Accell mentioned in the press release are changes the holding company made in the structure of its operations in the US where Accell Group North America was formed as well as the reorganization in The Netherlands (see related articles on this page).
In addition, Accell says that the manufacturing and assembly activities in Canada will be ceased at the end of the current bicycle season, after which will be switched to multi-channel distribution. Furthermore the Raleigh distributor in Finland has been acquired and will be integrated in the Accell Group subsidiary Tunturi Hellberg.
To strengthen the Raleigh components and accessories activities in the UK the activities of the XLC distributor have been acquired in order to realize a broader distribution in the UK.