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Pon Bike annual sales hit $2.6 billion, company says

Published April 7, 2023

AMSTERDAM (BRAIN) — Pon Holdings revenue increased 23% year-over-year to reach $10 billion euros ($10.9 billion) for the first time in company history, while Pon.Bike revenue was 2.4 billion euros ($2.62 billion).

According to a Pon Holdings spokesperson, the private company has shared some earnings data with two Dutch newspapers in the past but this is the first time it shared figures with some in the cycling media. Pon did not provide a precise overall revenue figure, nor did it provide Pon.Bike's 2021 revenue.

The growth was across all its categories, including Automotive, Equipment & Power Systems, and Agricultural Products & Services, according to Pon. E-bikes and electric automobiles continue to grow, according to Pon, but no revenue figures for those subcategories were provided.

Pon reported EBITDA rose to 1,045 billion euros, compared with 559 million euros in 2021, which includes 383 million euros in proceeds from divestments. Net profit increased 78% from 307 million euros to 547 million euros year-over-year. Pon's workforce also grew last year from 13,678 to 15,700 employees in 34 countries on six continents.

"We have further expanded our automotive operations in the Netherlands, Germany, Vietnam, and the U.S., helped by growth in electric cars," said Janus Smalbraak, Pon Holdings' CEO. "The integration of Dorel Sports with Pon.Bike is proceeding apace, making us a global player with top bike brands and e-bikes. The big investments in bike infrastructure occurring primarily in Europe and the U.S. will give e-bike sales additional impetus in the future."

In January 2022, Dorel industries completed its sale of Dorel Sports to Pon Holdings for $819 million. The purchase included Cannondale, Schwinn, GT, Mongoose and other bike brands.

Pon marked its 75th year in 2022 with the Volkswagen Group. Also in 2022 it acquired Europcar in a joint venture with Volkswagen AG and others. According to Pon, it will offer "new forms of mobility under this brand in the near future." Automotive revenue was 6 billion euros that year, compared with 5.2 billion euros in 2021.

Pon.Bike has started construction on a bike plant in Lithuania, which will produce about 500,000 electric and other bikes per year, Pon said.

"The economy is facing obstacles in 2023, once again, particularly in Europe and the U.S.," Smalbraak said. "The projected slowdown will have an impact on us, too, as well as the parts supply that is still not up to speed in places. Even so, we began our year with full order books for Automotive, Bike, and Equipment & Power. Our portfolio of strong brands, our service level, and our excellent teams with fantastic and highly motivated people keep our business resilient."

Topics associated with this article: Earnings/Financial Reports

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