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MIFA’s Bike Sales Drops by 8%

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SANGERHAUSEN, Germany – MIFA (Mitteldeutsche Fahrradwerke AG – listed on the Frankfurt stock exchange) saw it bicycle sales drop by 7.6% to 462,000 units during the first nine months of 2013. The company’s revenue stabilized at € 97.7 million compared to the same period in 2012.

MIFA’s Bike Sales Drops by 8%
MIFA CEO Peter Wicht, “The clear improvement in our operating earnings shows that our ‘from volumes to margins’ strategy is bearing fruit.” - Photo MIFA

Germany’s largest manufacturer of bicycles in terms of sold volume saw its revenue decline by 14.5% during the third quarter of 2013 compared to the same period in 2012. MIFA CEO Peter Wicht said about that drop, “Our sales revenues in the summer quarter were not as high as expected due to a customer specific acceptance delay. In view of the current new order intake, however, we anticipate acceleration during the fourth quarter.”

E-bikes: decisive revenue driver

The average sales price of the 462,000 bikes sold rose by 8.2% to € 211 from € 195. E-bike sales remains the decisive revenue driver for MIFA as it generated € 30.1 million during the first nine months, up 16.2% compared with the previous-year period (€ 25.9 million), with their share of total consolidated revenue advancing to 30.8% (was 26.5%).

MIFA sold its e-bikes for an average sales price of € 745; up 20.7%, offsetting the slight decline in the number of e-bikes sold, which decreased to 40,000 units (was 42,000 units 2012). The average sales price of conventional bicycles increased by 2.6 % to € 158. Overall, MIFA sold 422,000 regular bicycles. The revenue generated with conventional bicycles declined by 5.1 % to € 67.0 million.

Outlook

Including significantly higher year-on-year inventory changes of € 10.0 million (was € 2.5 million), total operating revenue grew by 7.7% to € 107.8 million. The corresponding gross profit margin of 33.4% is significantly higher than in the previous year (was 31.5%).

CEO Peter Wicht commented on the results for the nine months of 2013, “The clear improvement in our operating earnings shows that our ‘from volume to margins’ strategy is bearing fruit. And Eurobike also proved very successful for us: specialist dealers are ordering GRACE and Steppenwolf bikes, which is why we expect our sales revenue to resume year-on-year growth during the final quarter. Given this, I continue to regard the lower end of our 2013 revenue target range as achievable.”

MIFA aims to generate between € 120 million and € 130 million of sales revenue in the 2013 financial year, and an EBIT margin between 4 and 5%.

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