In an update on its recently sharpened ‘Lead Global, Win Local’ strategy, Accell Group has today announced new steps to create a ‘more performance focused, consumer centric bicycle and bicycle parts company.’
The company adds that its most important decision is to focus on its European business and to run its US activities as a separate and non-core business. ‘The main reason for this is to focus on elimination of profit dilution as well as to focus on the core business.’
The company provides guidance on its financial performance for 2018, reporting a net sales growth YTD November in its, as of today, core business (excluding US), of +6% vs the same period last year.
Group EBIT-performance for the core business will be around €51 million and €57 million excluding extraordinary expenses. Group EBIT-performance for the full year including US activities (-€20m) and extraordinary expenses (-€6m) will be around €31 million.
Accell Group has decided to run the US business (around 6% of total group turnover) as a separate and focused entity and therefore defined the US business as non-core. A review will be conducted with the aim to eliminate the profit dilution. In this review Accell Group will explore all possible future options for the US business, a sale being one of the options next to rightsizing to a standalone profitable business. The review will be conducted in the next 6 to 9 months.
Ton Anbeek, CEO of Accell Group said “Now that our management board is complete, we are stepping up the pace in executing our growth strategy. We’ve invested time and money in our move towards an even more focused and more consumer centric company. This allows us to bring our innovations more in line with consumer trends and demand.
“In addition, it allows us to reach consumers in a more effective way through more effective distribution. We need to be where the demand is, with the propositions that consumers are looking for. We can see that for our core business we are effective in the majority of the markets where we operate, resulting in growth and good margins.
“We have decided to run our US activities as a separate and non-core entity. This means that we need to reconsider and decide on our US activities in the next 6 to 9 months, apart from improving the results of the US business. While considering future options for the US will require our attention, we expect these measures to free up management time, allowing us to focus more on the further execution of our growth strategy.
“Looking at the underlying results of the company, we are confident that we are taking the rights steps. It gives us comfort and confidence to reconfirm our 2022 strategic and financial objectives.”
Accell Group focuses internationally on the mid-range and higher segments of the market for bicycles and bicycle parts and accessories. The company has leading positions in the Netherlands, Belgium, Germany, Italy, France, Finland, Turkey, the United Kingdom and the United States.
In Europe, Accell Group claims the position of market leader in the bicycle market measured in turnover. Accell Group’s best known brands are Haibike (Germany), Winora (Germany), Batavus (Netherlands), Sparta (Netherlands), Koga (Netherlands), Lapierre (France), Ghost (Germany), Raleigh and Diamondback (UK, US, Canada), Tunturi (Finland), Atala (Italy), Redline (US), Loekie (Netherlands) 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 head office is located in Heerenveen (the Netherlands).
In 2017, Accell Group sold around 1.3 million bicycles and recorded turnover of over €1 billion.