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Accell Group reports profits, revenue up in first quarter

Published April 26, 2016

HEERENVEEN, Netherlands (BRAIN) — Accell Group said it recorded higher turnover and profit in the first quarter of this year compared to last year due to higher demand for higher priced e-bikes and sport bikes.

"The year 2016 started well for Accell group," said René Takens, chairman of the board of directors of Accell.

"Sales of electric bikes were up in all countries, especially in Germany. Sales of electric bikes also increased by more than 10 percent in countries where the market in this category is more modest. On top of this, we are seeing a clear rise in the demand for our sports bikes. This resulted in an increase in the average price of the bikes we sold compared to the same period in 2015. Turnover in parts and accessories came in at the same level as last year. The higher turnover we recorded helped us to book a healthy increase in profit for the first three months of 2016. We therefore maintain our forecast for 2016 of a further increase in turnover and profit, barring unforeseen circumstances."

In early April Accell Group N.V. announced that it had agreed to sell its North American P&A business to Hawley-Lambert. Accell Group said it wants to increase its focus on its core business in the U.S., via its own bicycle brands and related merchandise.

Accell Group has also sold Hawley-Lambert the exclusive distribution rights in the U.S. and Canada for Accell Group's proprietary accessory brand XLC. The turnover from the P&A business is estimated to be 15 million euros ($17 million) lower on an annual basis.

The sales to Hawley-Lambert is expected to have a positive impact on Accell Group's operational result and its working capital, the company said.

Topics associated with this article: Earnings/Financial Reports

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