For the first half of 2010, Accell Group has reported a 3 percent increase in sales to €342 million, with a boost from minor acquisitions. The Dutch company’s operating profit rose by 3 percent to €35.4 million. The net profit was up by 9 percent to €24.1 million.
Electric bicycles had a 10 percent increase in revenues, which helped the top line. Sales of traditional bikes fell because of the bad winter and then bad weather again in May. Besides, dealers have been reducing inventories of e-bikes, in spite of growing demand, due to limited financing possibilities. While they sold fewer of them than in the first half of 2009, the demand for replacement parts surged.
Sales in the bicycle segment were flat at €264 million, with a stable volume staying of about 580,000 units and average selling price remaining at €456. Sales of bike parts and accessories rose by 11 percent to €64 million. Recovering from past woes, the group’s fitness segment had a 22 percent rise in sales to €14 million.
By region, the Netherlands and France saw drops in sales, by 7 percent to €141 million and by 6 percent to €27 million, respectively. The French brand Lapierre enjoyed sales growth and accessories performed well; the drop came from a reduction in commercial city projects in the country. Other regions saw increases in turnover. Sales in Germany climbed by 7 percent to €89 million, helped by the purchase of Bäumker, a Batavus importer, in January. E-bikes improved as they picked up speed on the market, unlike in the Netherlands, where they’ve been available for longer. Accell brands such as Ghost, Hai Bike and Winora also saw increases in Germany, as did accessories.
In the rest of Europe, sales grew by 23 percent to €63 million, with increases in Scandinavia, Austria, Spain and the U.K. In other countries, turnover surged by 25 percent to €22 million, as the decrease in sales in North America seems to have stopped. There, the BMX brand Redline did well and led the way for a sales increase in sales by Accell’s local subsidiary, SBS.
Currently Accell is looking to expand the Scandinavian Nishiki brand, part of Hellberg, which Accell bought in June 2009. That company’s integration as well as that of Tunturi, another Scandinavian company, is nearly complete.
For the full year, Accell is forecasting higher sales and a 5 to 10 percent rise in net profit.
