HEERENVEEN, The Netherlands (BRAIN)—Accell Group’s revenue rose just 1 percent in 2010 as poor weather conditions and unfavorable exchange rates hampered fourth quarter sales.
Still, the company posted an 11 percent rise in net profit due to tax benefits and lower interest charges.
For the year, Accell posted sales of €577.2 million compared with €572.6 million in 2009. Net profit rose to €36.4 million from €32.7 million.
René Takens, CEO of Accell Group, said he was reasonably satisfied with the company’s overall performance last year.
“The drop in turnover was limited in the second half of the year, though turnover remained unexpectedly strong below our original expectations. Our companies were partly able to charge on the increases in exchange rate of the U.S. dollar and Japanese yen from April 2010 in new sales prices, although the price increases were received more positively in some segments than in others,” Takens said in a written statement.
Revenue for bicycles and bike parts and accessories increased by 1 percent in 2010 to €548.7 million. That segment accounts for 95 percent of Accell Group’s total revenue. Sales of bike parts and accessories was up 13 percent.
The number of bikes sold dropped to 949,000 from 986,000 in 2009, while average selling price rose from €439 to €449.
Demand for electric bikes, mountain bikes and other mid to high-end bikes grew in 2010, while city bikes and kids bikes did not sell as well as the previous year.
Sales in Accell Group’s fitness division fell 4 percent last year.
The company said it expects revenue to rise this year due increased demand for bikes in light of trends favoring health, environmental awareness, mobility and active leisure time.
Accell Group owns Batavus, Koga, Sparta, Winora, Hercules, Hai Bike, Ghost, Lapierre, Atala, Redline, Tunturi and XLC.
To read the full report on Accell Group’s 2010 results, click on the link above.