Higher Turnover and Profit for Accell Group
HEERENVEEN, the Netherlands – Accell Group N.V. recorded a turnover of € 503.8 million in the first half of 2013, an increase of 13% compared the first half of 2012. Of the total growth, 7% was organic. Operating profit was 19% higher at € 35.5 million.
René Takens, CEO of Accell Group: “The growing popularity of cycling has not resulted in an immediate increase in sales, and a number of bicycle markets are showing a decline, however Accell Group still managed to record an increase in turnover in the first half of 2013.”
“Turnover in e-bikes was 28% higher, mainly in Germany and the Netherlands. All the countries in which Accell Group sells its bicycles and bicycle parts had to deal with the consequences of an cold spring and a further decline in consumer confidence. This put bicycle sales below the levels we expected, but the overall level was still above that of 2012. It is a clear sign the bicycle sector is performing quite well compared with other consumer product segments.”
Turnover in € millions
- Netherlands 126 (+2%)
- Germany 125 (+11%)
- North America 76 (+35 %)
- Rest of Europe 151 (+22%)
- Other countries 26 (- 9%)
Sales of sports bicycles
Accell Group recorded a 13% increase in turnover in the first half of 2013, with 7% of this organic mainly realized in Germany. The main sales drivers came from sales of e-bikes and bicycle parts and accessories. Sales of sports bicycles remained stable while sales of traditional bicycles were lower in most European countries and the United States due to adverse weather conditions and a continuing reluctance among consumers to make major purchases.
The average sales price of bicycle rose to € 1,277, from € 1,153 in the first half of 2012. Sales of sports bicycles increased by 12% and sales of traditional bikes were up 8% as a result of the addition of Raleigh. In organic terms, sales of sports bikes remained stable, while sales of traditional bicycles dropped by 4%.
Provisional figures show that the Dutch bicycle market has remained stable in the first few months of 2013 when compared with the same period of 2012. Turnover of Accell Group bicycle brands was up 2%. Turnover in bicycle parts & accessories was up 4%.
The German bicycle market fell slightly in the first half mainly due to bad weather, while sales of e-bikes were up. Turnover of Accell Group bicycle brands was up 12%, while sales of bicycle parts & accessories were up 8%.
Poor weather conditions in North America resulted in disappointing sales in the bicycle sector and total supplies to specialist retailers in the market were 15% lower than in the first half of 2012. Accell Group bicycle brands saw their deliveries to specialist retailers perform less bad than the market. Turnover of the Accell Group bicycle brands and bicycle parts increased due to the acquisition of Raleigh. The decline in organic turnover was slightly less than the overall market decline. Accell Group announced in the first half that its companies in the US will cooperate more closely and Accell Group will continue with the integration process in the second half of the year.
Accell Group’s main other European markets are France, the UK, Belgium, Switzerland, Austria, Scandinavia, Italy and Spain. Turnover was up in all of these countries. The growth was largely due to higher turnover in bicycle parts and accessories and e-bikes. The rise in the UK was largely driven by the acquisition of Raleigh and growth at bicycle parts.
Turkey, Australia, South America and Asia
The company’s main markets outside Europe are Turkey, Australia and countries in South America and Asia. Turnover in most countries increased. Turnover also includes the licensing income from Raleigh bicycles in these regions. The reduction in the turnover reported in other countries was due to a change in the way the turnover of Raleigh’s trading company in Taiwan is accounted for. In line with the 2012 annual accounts, and unlike in the first half of 2012, only the service fee is now recorded as turnover, rather than the value of the goods.
The ongoing macro-economic developments and the weather remain difficult to predict for the second half of 2013. Furthermore, sales fell short of expectations in the last few months, whereby it is expected that for the second half of 2013 some more discounts must be granted with regard to this season’s collections, as compared to last year. For the full year, Accell Group expects to record a year-on-year increase in operating profit. The net operating profit is expected to come in at approximately the same level as in 2012, barring unforeseen circumstances, whereby the financing costs and taxes will be higher compared to 2012.