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Accell Group’s Profit Up 20 Percent

Published July 23, 2008

HEERENVEEN, Netherlands (BRAIN)—Accell Group reported a 20-percent profit for the first half of 2008, crediting the acquisition of Ghost mountain bikes and strong bikes sales for its success.

In the first six months of the year, Accell collected revenues of 306 million euros, up 11 percent, and recorded a profit of 19.3 million euros compared with 16.1 million euros during the first half of 2007, the company said during an earnings press conference on Wednesday.

“In the first half of 2008 we realized a sound organic growth, especially given the exceptionally good weather in the first half of last year. Especially bicycles in the higher segment, such as electric bikes and sporting bikes, were much in demand these past six months, which contributed to an increase of our operating margin to 9.9 percent,” said René Takens, chairman of the executive board of Accell Group.

“In many European countries, especially in Germany and France, the sales of bicycles increased. We are benefiting from an increased awareness of health, the environment and leisure time. The significant rise in oil prices also induces consumers to search for alternative means of transport.”

Bicycles sales accounted for 77 percent of Accell’s revenue with parts and accessories and fitness filling in the other 23 percent.

Seattle Bike Supply’s revenue of both bicycles and parts continued to grow in the first half of 2008 against the backdrop of high gas prices, the credit crisis and pressure on consumer spending.

The impact of price increases of raw materials and parts was minor in the first half of 2008 because prices had already been set, however the higher cost for metals, rubbers and plastics will be reflected in new retail prices for 2009 bikes, which will be presented this fall.

Accell Group’s brands include Batavus, Bremshey, Ghost, Hai, Hercules, Koga-Miyata, Lapierre, Loekie, Mercier, Redline, Sparta, Staiger, Tunturi, Winora and XLC.

For more on Accell Group’s semi-annual earnings, be sure to read the August 15 issue of Bicycle Retailer & Industry News.

—Nicole Formosa

Topics associated with this article: Earnings/Financial Reports

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