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Accell Group: Net profit up 21% in first half

Published July 24, 2015
Growth from e-bike sales in Europe; North American performance 'below expectations.'

HEERENVEEN, the Netherlands (BRAIN) — Accell Group N.V. noted that operating profit in the first half of the year was up 29 percent to $53.8 million (€49.1 million), while net profit was up 21 percent to $34.9 million (€31.9 million).

Dutch conglomerate Accell Group owns a range of bike and accessory brands sold and distributed in various European countries including Batavus, Sparta, Koga, Ghost, Haibike, Lapierre and XLC. It also has a wholly owned subsidiary, Accell North America, that sells Raleigh, Diamondback, Redline and more recently brought in Ghost bikes to U.S. and Canada.  

Overall sales were up 13 percent to $628.8 million (€573.8 million), something the Dutch company attributed mostly to higher sales of e-bikes in the European market. 

In a financial recap of the first half, Rene Takens, chairman of the board of directors of Accell Group, noted that e-bikes account for 34 percent of overall revenue. 

“We are ahead of the field in technological innovations and the introduction of new Haibike performance e-bikes and Sparta and Haibike e-speed bikes, both of which new products have the clear potential to further boost our organic growth in the years ahead,” Takens said. 

Bicycle parts and accessories sales were up in Europe both organically and as a result of recent acquisitions. However, Takens said in North America, “we were confronted with tough conditions and the performance of Raleigh and our bicycle parts and accessories were below expectations.”

Across all markets, Accell Group sold 985,000 bikes, down from 1,018,000 last year, in the first half at an average sales price of $481 (€439) — the higher average (compared to €380 euros last year or $416) influenced by the greater number of e-bikes and more expensive sport bicycles, the company said. This brought overall dollar sales up 12 percent. 

Sales of e-bikes were up 20 percent, largely due to growth in Germany. Sales of traditional bikes were up 4 percent, while sales of sports bikes were up 8 percent.

In North America, dollar sales were up 2 percent in complete bikes. Accell said sales of Diamondback bikes were up thanks to deliveries to sporting goods chains. The newly introduced German brand Ghost, sold exclusively through REI, also made a solid contribution to revenue growth. But sales of Raleigh bikes in the specialty channel declined, which Accell said was partly due to competition from Internet sales. 

“The focus for the Raleigh brand is on renewed brand positioning,” the company said in a press release. “Accell Group will also adjust its North American sales organization. Sales of electric bicycles that were introduced this year were higher, but this segment remains modest for now.”

Sales from parts and accessories in North America fell slightly in dollars for the first half. 

“Many of the larger suppliers have now opted to deliver their products directly to the retail trade, Internet sellers or even directly to consumers, and no longer use distributors,” the company said. “As a result, in North America Accell Group will focus on the sales of the parts and accessories produced by its own brands XLC, Raleigh and Diamondback, together with a limited number of additional product lines. Sales will be to bicycle retail trade, multisport chains and web shops.”

More information: Accell press release.






Topics associated with this article: Earnings/Financial Reports

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