Turnover up, but profit down for Raleigh owner Accell - BikeBiz

Turnover up, but profit down for Raleigh owner Accell

Dutch Accell Group reveals growth in turnover in the UK
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Turnover grew for Netherlands based Accell Group by 10 per cent to €849m in 2013 (€772.5 in 2012).

Despite the turnover rise, profit came in at €19m, down from €23.3m in 2012 - due to 'one-off reorganisation changed in the Netherlands and North America'.

In the United Kingdom approximately 40 per cent of turnover is realised in bicycle parts and accessories, the firm revealed. The bulk of turnover in the UK is booked by Raleigh UK, which saw turnover increase, Accell said.

Bicycle statistics
Turnover in the bicycle and P&A segment rose ten per cent to €827.6m (€751.4 in 2012) and the number of bikes sold rose to 1,835,000 (1,605,000 in 2012). Average price fell to €336 - approx £277 - in 2013 (€345 in 2012). Accell added that Raleigh sells relatively more MTBS and racing bikes in the mid-market segment.

The Raleigh owner cited higher sales of e-bikes and turnover in the US, with organic growth at five per cent from higher e-bike and sport bike sales - electric bikes accounted for 35 per cent of Accell Group's total bicycle sales in 2013 (32 per cent in 2012).

Global perspective
Netherlands turnover was three per cent higher in 2013, while volumes declined three per cent. Strong growth in e-bike sales offset declines in other product groups. Sales in Germany increased too, again largely due to e-bikes, with turnover up seven per cent and volume of bikes sold down two per cent. France, Belgium, Turkey, Switzerland and Sweden saw turnover increase, while Finland decreased.

Sales in North America grew, though higher discounts at the end of the season curbed results there. The production facility in Canada has now been fully closed.

René Takens, CEO of Accell Group, said: “The year 2013 was a challenging one for Accell Group as we faced lower consumer spending and unfavourable cold weather in the spring. Hence turnover increased less than expected. Partly due to the continuing popularity of e-bikes, turnover was higher in virtually all markets where Accell Group is active, also on an organic basis. Most markets were stable or showed a slight decline. Our operating result increased in 2013, but the margin was down due to the previously announced higher discounts granted in the second half of the year. These discounts were required to normalise the relatively large inventories at the end of the bicycle season which were the result of the unfavourable weather in the spring.

"In the past year, Accell Group focused primarily on consolidation and integration. We intensified and optimised the cooperation between the Accell Group companies in both the Netherlands and North America. The reorganisations in North America and the Netherlands are on track. In that same vein, we also recently announced the sale of the German brand Hercules. This will enable us to better position our German brand portfolio in the market.

"Long term trends suggest that cycling will remain highly popular in the years to come, for mobility purposes, for both recreational and sports purposes alike. We expect to remain ahead of the field with our high-quality products and we will launch additional innovations to make cycling even more fun for these various purposes.

"Based on the underlying positive trends combined with the macro-economic indicators, which are slightly more positive for consumer spending, and barring unforeseen circumstances, we expect to book a further increase in turnover and a higher profit for 2014.”

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