Pressure on Accell Group’s Profit
HEERENVEEN, the Netherlands – Despite expectations for a higher turnover and an on par operating profit, Accell Group’s outlook on the full year 2013 is the net profit to drop below the level of last year. In particular as restructuring costs for reorganizations in The Netherlands and North America come into play.
In a today issued press release on its financial results for the first nine months of 2013, Accell Group NV (listed on the Amsterdam AScX stock market) reports on the named reorganizations.
“The second half of the year will include a number of exceptional items regarding the earlier announced and deployed reorganizations for the Netherlands and North America this year. The reorganizations are on track. During the course of 2014 the integration of the bicycle production of Batavus and Sparta in the Netherlands will be completed. End of June 2013 the production of bicycles in Canada has ended and at the end of this year the integration of the companies in the United States will be deployed. The related restructuring costs for the Netherlands and North America amount to a total of net € 3.0 million in the second half of the year.”
Next to that Accell Group also expects higher financing costs as well as higher taxes.
Stable or slightly decreasing markets
On the full year turnover prospects Accell Group says in its press release, “A higher turnover both in total and organically is expected compared to 2012 in markets which are stable or slightly decreasing.” In a further explanation on the results, CEO René Takens said, “Sales of electric bikes continued to grow, in particular in Germany. Also sales of innovative sport bikes continue to develop well, while pressure on sales of traditional bikes has eased.”
He furthered with, “Developments in recent months show that the bicycle season has not really picked up in full following the bad conditions during spring, despite good weather in the summer months in most countries. Therefore more products were sold at a discount at the end of the season than anticipated. Meanwhile, inventory levels have again normalized.”
Given the outlined developments and the current market outlook Accell Group expects a higher turnover for the full year 2013 whereby the added value will be at a relative lower level mainly as a result of granted discounts.
For 2014 Accell Group notes in its press release. “As our dealers are also encountering the effects of a difficult season, less bicycles of the new model year are currently sold in pre-season sales; dealers are frequently moving orders to the spring. Nevertheless, Accell Group’s turnover will also increase in the second half of the year, which also demonstrates that even during slow economic times the underlying long term trends of more consumer interest for mobility, health and sports are structural.”
Accell Group’s 2012 turnover stood at 772.5 million euro and net profit at 23.2 million euro.