HEERENVEEN, Netherlands (BRAIN) — Accell Group NV posted a 19 percent increase in profit in the first half of 2013 compared to last year despite challenging weather conditions in Europe and the United States. Revenue was up 13 percent to 503 million euros ($667 million), officials said.
The Dutch company pointed to sales of electric bikes, especially in Germany, Netherlands, Switzerland and Denmark, as the driver of growth, as well as sales of parts and accessories. Sales of electrics were up 28 percent and their average price grew to 1,277 euros ($1,695) from 1,153 euros ($1,530) last year.
Overall, the company sold 1,115,000 bikes in the first six months, up from 942,000 last year. Growth was attributed to Raleigh, which it bought in April 2012.
Still, the average price fell to 345 euros ($457) from 352 euros ($467) last year and Accell’s CEO René Takens said sales were down in many markets.
“All the countries in which Accell Group sells bicycles and bicycle parts had to deal with the consequences of an unfavorable spring and a further decline in consumer confidence,” said Takens. “This put bicycle sales below the levels we expected, but the overall level was still above that of 2012."
Meanwhile, Accell is cutting costs with reorganizations in the Netherlands and Canada. The move earlier this year to consolidate production of Batavus and Sparta in the Netherlands is on track to be completed by next summer and will save the company 2 to 3 million euros annually. Accell also ended production and assembly in Waterloo, Quebec, in June and its Oakville, Ontario, facility was sold. Both moves will boost its profitability into next year.
The company expects operating profit for the full year to be up, but discounts on 2013 model year bikes will continue in the second half to make up for a recent shortfall in sales and excess inventory in the channel, officials said.
Accell Group NV shares are traded on the NYSE Euronext in Amsterdam and included in the Amsterdam Small Cap Index (AScX).
More information: company press release