In the third quarter of 2015, Accell Group recorded continued growth in turnover in virtually all countries and booked a higher result compared with the same period of last year. These positive developments were largely driven by healthy sales of the company’s German and French brands.
Thanks to a ‘good third quarter’, Accell Group expects an organic turnover growth and an increase in net profit for the second half of 2015, compared to the same period of 2014. (Accell Group booked operating profit of €49.1 million in the first half of 2015, an increase of 29% from the €38.2 million recorded in the first half of 2014.)
René Takens, CEO at Accell Group said, “The positive trends seen in the first half continued into the third quarter and the month of October. Our turnover and profits were up, due in part to the growing proportion of electric bikes and higher-end sports bikes in our sales. Based on these developments, we are expecting a growth in turnover and profit for the full year 2015.”
In the third quarter, turnover in both bicycles and bicycle parts and accessories was higher than in the same period of 2014. Turnover in electric bikes increased in virtually all European countries. The new positioning of the Raleigh bicycle brand in the United States has so far only had a modest impact on turnover, but the company notes that the initial response has been positive.
The increase in turnover in bicycle parts and accessories was largely driven by Germany and the Netherlands.
The US dollar exchange rate had a greater than usual impact on working capital. This is partly due to the conversion of inventories and receivables in dollar countries and partly due to an increase in the cost of components purchased in dollars.
The previously completed acquisitions of Comet (Spain) and CSN (Denmark) contributed to an increase in working capital.
To meet growing market demand and thus facilitate organic growth, Accell Group notes that the number of more expensive bicycles in stock is higher than it was in the same period of 2014.