CLOPPENBURG, Germany (BRAIN) Friday May 25 2012 12:28 PM MT—Derby Cycle gained 17.3 percent in revenue in the first half of its financial year, led by significant growth in e-bike sales, according to an earnings report issued Friday.
Derby sold 53,190 electric bikes in the six-month period ending March 31, an increase of 36.7 percent from the same time period the year before. The vast majority (44,385) of those e-bikes were sold in Derby’s home market in Germany. In all, Derby sold 252,248 units under its Kalkhoff, Raleigh, Rixe, Focus and Univega brands, a slight increase of 3.4 percent from the prior year period.
Half-year revenue was 134.2 million euros ($179 million), operating profit was up 25.1 percent to 13.1 million euros ($17.5 million) and net income rose 31.5 percent to 7.9 million euros ($10.5 million). The share of revenue from foreign sales remained steady at about 30.8 percent, down a tick from 32.1 percent share last year.
Revenue from international markets outside Europe was up 33.3 percent to 5.2 million euros ($7 million), the bulk of which comes from Derby’s Focus USA subsidiary. Most of Derby’s revenue is generated in Germany, although sales are slowly picking up momentum elsewhere. Sales from outside Germany were up 12.5 percent from 36.7 million euros ($49 million) to 41.3 million euros ($55 million).
Derby is sticking to its full-year forecast of 250 to 270 million euros despite the ongoing debt crisis in Europe and its potential impacts on the economy. It did address the concerns, saying the controversial discussions around the economy do not exclude “a massive cooling of economic growth, with corresponding consequences for production and consumption.”
Should it come to such an economic downturn, Derby Cycle would also be unable to decouple from such trends,” it said.
Pon Holdings owns the majority share of Derby Cycle, which is traded on the Frankfurt, Berlin, Düsseldorf, Munich, Stuttgart and London stock exchanges. It share price was 31.14 euros as of March 31. The issue price in February 2011 was 12.50 euros, representing an appreciation of almost 150 percent.
*All conversion use March 31, 2012 exchange rate of $1= .7496 euro.