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Accell Group Expects 10 Percent '09 Profit

Published November 17, 2009

HEERENVEEN, the Netherlands (BRAIN)—Accell Group reported to have an expected higher turnover and an increase in net profit of around 10 percent compared to 2008.

“Turnover through October has developed in line with our expectations,” said René Takens, chairman of the executive board of Accell Group. “We saw an increased turnover at both bicycles and bicycle parts and accessories. The use of bicycles remains increasingly popular for health and mobility purposes.

“We also notice an increased use of racing bicycles and mountain bikes for sports purposes, both for leisure and competition,” he added. “The interest in electric bicycles continues unabated. We have significantly extended our e-bike product lines with e-bikes in several price ranges. With our mostly in-house developed innovative technologies, comfort and contemporary design, we offer customers the best quality and most attractive product range. This gives us a competitive edge. We will keep investing to maintain and strengthen our leading position in the market.”

Contrary to the turnover increase in the bicycles and bicycle parts and accessories segment, the sales in the relatively small fitness segment through October were lower than in 2008. This is partly due to deteriorating market conditions and partly because of the loss of a number of international distributors, who were no longer able to finance their purchasing. At the fitness division, important cost reductions and a reduction of working capital have been realized. This segment accounts for less than 5 percent of group turnover.

The new 2010 bicycle collections, which were presented in September 2009, were well received by dealers. The order intake for the new season is currently at a similar level as last year.

Taking into account the normal effects related to the seasonal distribution of sales throughout the year, there were no significant changes in Accell Group’s financial position for the past period up to and including October 2009.

Topics associated with this article: Earnings/Financial Reports

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