Building on a positive first quarter, leading European bike business Accell Group has recorded a 10% year on year increase in turnover to €629.7 million in the six months to 30 June 2016. The rise in turnover, up from €573.8 million in the previous year period, was, according to the company, ‘entirely organic’.
Net profit in the same period rose by 7% to €34.0 million (2015: €31.9 million).
René Takens, Chairman of the Board of Directors of Accell Group said, “The market conditions for the specialist retail sector were not particularly easy in the first six months of this year, as weather conditions in particular had a negative impact on bicycle sales in many countries. Despite these unfavourable conditions, we have recorded strong organic growth in the first half of 2016, largely driven by higher sales of electric bikes.
“Turnover from bicycle parts and accessories was also higher in Europe, but we did see a slight drop in total turnover in this segment due to the sale of our North American operations.”
He continued, “Profit growth came under a certain amount of pressure in the past half year, due to lower margins on the sales of older bike ranges and extra costs incurred in connection with two major bankruptcies of multi-sports chains in North America. These bankruptcies are a clear sign of the far-reaching changes in consumer purchasing behaviour, changes that we are seeing to a lesser or greater degree in many countries.
“We therefore devoted a great deal of attention in the first half of the year to tightening our strategy and we will be giving consumers in many of the countries in which we are active a much more prominent role in this strategy.”
For the second half of 2016, Accell Group expects to record higher turnover and profit, ‘barring unforeseen circumstances’.
Accell Group First Half 2016 turnover
Accell Group focuses internationally on the mid-range and higher segments of the market for bicycles and bicycle parts & accessories. The company claims leading positions in the Netherlands, Belgium, Germany, Italy, France, Finland, Turkey, the United Kingdom and the United States.
In Europe, Accell Group is a market leader in the bicycle market in terms of turnover. Accell Group’s best known brands are Batavus (Netherlands), Sparta (Netherlands), Koga (Netherlands), Loekie (Netherlands), Ghost (Germany), Haibike (Germany), Winora (Germany), Raleigh and Diamondback (UK, US, Canada), Lapierre (France), Tunturi (Finland), Atala (Italy), Redline (US) and XLC (international).
Accell Group and its subsidiaries employ approximately 3,000 people in 18 countries worldwide. The company has production facilities in the Netherlands, Germany, France, Hungary, Turkey and China.
Accell Group products are sold in more than 70 countries. The company’s headquarters are located in Heerenveen (the Netherlands). Accell Group shares are traded on the official market of Euronext Amsterdam and included in the Amsterdam Small Cap index (AScX). In 2015, Accell Group recorded turnover of €986 million.