Accell Group Reports Stabile Turn-Over but Less Profit in First Half 2018
HEERENVEEN, the Netherlands – The loss of sales to major online distributor Fietsenwinkel.nl in the Netherlands and Sports Authority and Sports Chalet in North America put heavy pressure on Accell’s first half of 2018 results. Net turn-over was up only 0.3% in the first half of 2018, when compared with the first half of last year the net result decreased by 2.9% to 25.5 million euro.
In its first half of 2018 report, Accell Group stated that, “the increase in turn-over was tempered in particular by delays in the product development of (e-)performance bikes and to a lesser extent from the late arrival of spring weather. The delays in product development resulted in suboptimal availability, which meant that order deliveries shifted to the second half of 2018.”
In Accell Group’s main market Germany, turn-over increased by 13.4% from 191 million euro to 217 million euro due to higher sales of sporty Haibike, Ghost and Lapierre e-bikes. Sales of regular bikes were lower in the first half of 2018, when compared with the year-earlier period. Turn-over from parts & accessories came in at the same level as last year.
In the first half of 2018, the Netherlands recorded less turn-over from both regular bikes and e-bikes. This was partly due to the deliberate halt put on the deliveries of bikes to a major online player Fietsenwinkel.nl as well as a number of delayed innovations. In the first half of 2018 turn-over declined by 10.4% from 123 million euro in 2017 to 110 million euro this year.
In the rest of Europe, higher sales of e-MTBs led to an increase in turn-over. Particularly in Austria, France and Norway, the Haibike, Ghost and Lapierre e-MTBs recorded an increase in sales. Sales of regular bikes and parts and accessories came in at the same level as last year.
Sports Authority and Sports Chalet
In North America, turn-over decreased by 22.5% to 44 million euro because of the loss of the clients Sports Authority and Sports Chalet at the end of 2017. Following the acquisition of Beeline Bikes in March, this company has been fully integrated and will now be rolled out within the franchise network. “We are now preparing the introduction of this mobile bike service in Europe,” explains Ton Anbeek, Chairman of the Board of Directors. “Beeline’s mobile technology platform offers an innovative solution for all our IBD partners, a solution that provides ease and personal service for consumers.
Turn-over in other countries decreased by 11.9% to 14 million euro due to the less favorable economic situation in Turkey in the first half of 2018.
Year of transition
“For us 2018 is clearly a year of transition,” Ton Anbeek stated today. “A period we will use to smartly reorganise our group and a period in which costs will outpace our income. Over the past six months, we have strengthened our management team and created a mix of young talent and solid experience, which has also created a completely different dynamic and added new energy. With this new team, we will accelerate the implementation of our transition and the roll-out of our new strategy.”
“In addition, we have made real progress on the priorities defined within each of our strategic pillars. The innovative power within the group is huge. We prove that once again with the introduction of the Haibike Flyon, which sets the standard for a next generation of e-mountain bikes, plus the Lapierre E-Road bike Xelius, which enables us to open up the e-road bike market segment. The bicycle is constantly developing at high speed opening up more new markets. Our advantage of scale and a promising pipeline of innovations, in combination with a more integrated and effective group will be the drivers of our growth in the years to come.”
Outlook for the rest of 2018
Accell Group expects to see continued turn-over growth in the second half of 2018, driven by higher sales of e-bikes and high-end regular bikes. Working capital at year-end 2018 is expected to see a major improvement, compared with end-June 2018. “Based on these developments, we expect the group to record an increase in net turn-over and a higher operating result for the full year 2018, barring unforeseen circumstances,” said Ton Anbeek.