Turnover Accell Group Rises, But Profit Declines in 2013
HEERENVEEN, the Netherlands – Accell Group N.V. recorded an increase in turnover of 10% to € 849.0 million in 2013, from € 772.5 million in 2012. This was largely the result of higher sales of electric bikes (e-bikes) and higher turnover in North America. Organic turnover growth came in at 5%.The net result came in at € 19.0 million in 2013, down from € 23.3 million in 2012.
Due to one-off reorganisation charges in the Netherlands and North America, higher financing charges and relatively higher tax charges net result came in at € 19.0 million in 2013, down from € 23.3 million in 2012. The full-year 2013 operating result (excluding one-off items) rose 2% tot € 36.9 million, from € 36.1 million in 2012.
René Takens, CEO of Accell Group: “The year 2013 was a challenging one for Accell Group as we faced lower consumer spending and unfavourable cold weather in the spring. Hence turnover increased less than expected. Partly due to the continuing popularity of e-bikes, turnover was higher in virtually all markets where Accell Group is active, also on an organic basis.”
“Most markets were stable or showed a slight decline. Our operating result increased in 2013, but the margin was down due to the previously announced higher discounts granted in the second half of the year. These discounts were required to normalise the relatively large inventories at the end of the bicycle season which were the result of the unfavourable weather in the spring.”
“In the past year, we focused primarily on consolidation and integration. We intensified and optimised the cooperation between the Accell Group companies in both the Netherlands and North America. The reorganisations in North America and the Netherlands are on track. In that same vein, we also recently announced the sale of the German brand Hercules. This will enable us to better position our German brand portfolio in the market.”
“Long term trends suggest that cycling will remain highly popular in the years to come, for mobility purposes, for both recreational and sports purposes alike. We expect to remain ahead of the field with our high-quality products and we will launch additional innovations to make cycling even more fun for these various purposes. In the past year, a number of our brands once again won several awards and other honours, including 10 IF awards 2014 which recently could be added.”
“Based on the underlying positive trends combined with the macro-economic indicators, which are slightly more positive for consumer spending, and barring unforeseen circumstances, we expect to book a further increase in turnover and a higher profit for 2014,” said René Takens.
Turnover in bicycles
Turnover in the bicycle/bicycle parts and accessories segment rose by 10% in 2013 to € 827.6 million, from €751.4 million in 2012. The number of bikes sold increased to 1,835,000, from 1,605,000 in 2012. The average price fell to € 336 in 2013, from € 345 in 2012, due to the acquisition of Raleigh in 2012 and higher discounts in the second half of 2013. Raleigh sells relatively more mountain bikes and racing bikes in the mid-market segment.
E-bike market share
Organically the average price increased as a result of a rise in market share of e-bikes. Sales of e-bikes increased by 23% and accounted for 35% of Accell Group’s total bicycle sales in 2013, compared with 32% in 2012. Turnover in sports bikes was up 6%, turnover in traditional bikes was up 7%.
The result from this segment as a whole came in higher at € 50.0 million, from € 48.8 million in 2012 and was largely realised in the first half of the year. The segment result was affected in the second half of the year due to discounts related to higher inventory levels as a result of unfavourable seasonal conditions in the first half of the year.
Accell Group’s turnover from bicycle sales in the Netherlands was 3% higher in 2013, while volumes declined (-3%). Strong growth in the sales of e-bikes offsets the decline in other product groups. The market showed a stable trend, with stable sales in bicycle parts & accessories.
Turnover in Germany once again increased in 2013, largely due to an increase in e-bike sales, which are highly popular in the German market. Turnover in bicycles and bicycle parts & accessories came in 7% higher, while volume of bicycles sold was down 2%.
Accell Group’s turnover from bicycles in North America increased substantially, in particular in the multisport channel, an important sales channel for Accell Group. Sales of e-bikes were also up, in what is for the moment a relatively small market. The disappointing bicycle sales in the first half of 2013 resulted in high inventories which had to be sold at higher discounts at the end of the season. Sales of bicycle parts & accessories declined and the sale of electric mini scooters is being phased out. The results of the American companies therefore were lower than expected.
France and Belgium
In France, turnover of bicycle parts & accessories delivered from Germany (E. Wiener Bike Parts) rose in particular. Turnover of Lapierre in France increased as well. In Belgium turnover increased. In this market, Accell Group is mainly selling bicycles under the Dutch brands in addition to products sold by the Belgium Accell Group subsidiary Brasseur.
In the United Kingdom approximately 40% of turnover is realised in bicycle parts & accessories. The bulk of turnover in the UK is booked by Raleigh UK, which saw its turnover increase.
In Switzerland the German Accell Group brands have a strong position in e-bikes. Turnover rose substantially in 2013. Also in Austria the German brands have a strong position, particularly in sports bikes. Turnover increased here as well. In Scandinavia turnover in Sweden (Vartex) increased while in Finland turnover declined as a result of an unfavourable season.
In southern Europe sales in Spain rose, which includes mainly exports of sports bikes of Lapierre, Ghost and Haibike. In Italy, Accell Group is active via the Atala brand (non-consolidated 50% stake) and with exports from the German and French brands. Outside Europe and North America, Accell Group recorded turnover growth in Turkey and the Far East. Worldwide license income on the Raleigh brand increased slightly, in line with expectations.