Accell Group booked a 1 percent increase in full-year revenues to €557.2 million as bicycle sales were dampened by poor weather in the fourth quarter. Sales were supported by the acquisition in June 2009 of the Finnish distributor Hellberg and in 2010 of Baeumaker, the distributor in Germany of the Batavus brand. On a homogeneous basis, turnover was down by 1 percent.
The company has completed the purchase of Bianchi Bisiklet of Turkey and Italy's Atala and intends to continue to actively seek this year another possible acquisition. The Turkish company has been renamed Accell Bisiklet will be consolidated in the group's results from Feb.1, while the 50 percent stake in Atala will be accounted as a participation. Accell Bisiklet sells 250,000 bicycles a year and generates annual sales of around €30 million. Atala sells 125,000 bicycles a year and has a turnover of about €31 million.
In 2010, Accell sold 949,000 bicycles, down from 986,000 a year earlier, but the average price rose to €449 from €439. Consumer demand is increasing difficult to predict due to the shift tastes, prompting dealers to be more cautious in placing advance orders and building up stocks.
Accell's sales in the Netherlands dropped by 5 percent to €224.9 million as demand for mid-tier traditional models and children's bicycles declined. The tax relief scheme for company bicycles is set to become less attractive leading to the abandonment of several projects in 2010. This year, sales of company bicycles are expected to continue falling.
Turnover in Germany rose by 2 percent to €144.5 million supported by the acquisition of Batavus' distributor and strong demand for electric bicycles. Sales dipped by 7 percent to €53.7 million in France, rose by 14 percent to €110.1 million in the rest of Europe and were up by 12 percent to €43.9 million in the rest of the world. The group benefited from increasing sales in Scandinavia and higher exports of sports and mountain bikes to Eastern and Southern Europe and Asia. In Southeast Asia the company started selling the Ghost, Lapierre and Koga brands. In North America, sales were lifted by the BMX brand Redline.
The fitness division posted a 4 percent drop in revenues to €28.5 million due to sharp drop in orders from North America. Turnover was also affected by the closure of the group's sales teams in Germany and the U.K. and their replacement with third-party distributors.
Placed under new management, Tunturi has shaved one-third of its staff, reducing it to 60 people, while doubling to 86 the number of countries in which the brand has a presence.
Bremshey, the professional fitness equipment line of the group, has been restyled, and the Tunturi home fitness equipment line will undergo a similar lifting next year.
The gross margin of the group fell to 35 percent of sales from 36 percent in 2009, due to higher transportation expenses, adverse currency rates and discounts. The operating profit slipped to €46.4 million from €49.9 million. But, thanks to tax benefits and lower interest rate charges, Accell boosted its net profit to €36.4 million from €32.7 million. The dividend was increased to €1.71 per share from €1.58.
The group expects higher revenues and earnings this year as the underlying market trend remains positive and the use of bicycles for transport and leisure continues to rise. Financial analysts forecast 2011 sales approaching €670 million, partly bolstered by this year's acquisitions, and net profit reaching €39 million.
