Revenue Record for MIFA in First Half of 2013
SANGERHAUSEN, Germany – MIFA, Germany’s largest bicycle manufacturer in terms of sales volume, grew its consolidated revenue to 82.6 million euro in the first half of 2013, up 3.3 % year-on-year despite the unusually cold weather during the April to June months.
Revenue grew at 12.0 % year-on-year, allowing MIFA to more than offset the weather-related revenue decline during the first three months of 2013. MIFA CEO Peter Wicht regards this delayed revenue realization not the only reason for the positive trend: “Our business with our proprietary Steppenwolf and GRACE brands allowed us to boost our average sales prices significantly, and consequently our revenue.”
Although the number of bicycles sold in the first half the year declined by 10.6 % to 395,000 units as planned, the average sales price appreciated by 15.5 %, from 181 euro in the prior-year period to 209 euro.
E-bikes sales driver
The sale of e-bikes remains the decisive driver of sales. MIFA generated 25.3 million euro of revenue with e-bikes in the first half the year, 19.3 % more than in the previous year’s period. The e-bike share in the consolidated revenue was up by more than four percentage points to 30.6 %.
The average sales price reported a marked increase of 26.2 % to 723 euro, by far offsetting the slight decline in the number of e-bikes sold, which dipped from 37,000 units in the first half of 2012 to 35,000 in 2013.
The average sales price of conventional bicycles was up by 9.7 % to 158 euro. Overall, MIFA sold 360,000 bicycles without electronic motors by the end of June compared to 405,000 in 2012. Revenue generated with conventional bicycles was down by 2.1 % to 57.3 million euro. Earnings before interest, tax, depreciation and amortization (EBITDA) increased from 7.0 million euro in the prior-year period to 7.3 million euro.
Peter Wicht confirms strategy
CEO Peter Wicht feels that these half-year results confirm the Group’s strategy: “We are participating in decisive developments on the bicycle market. Along with our established business with wholesale and retail buyers, as well as with industry, our brands are also allowing us to benefit from the fact that consumers are becoming somewhat less price focused, and that e-bikes are becoming increasingly popular.” Wicht again confirmed MIFA’s aim for the full year to achieve revenue between 120 million and 130 million euro, and an EBIT margin between 4 and 5 %.