German bicycle manufacturer Derby Cycle has reported strong half year financials, with a rise in revenue and numbers of bikes sold.
In the first half of its FY 2011/2012 (October 1st 2011 to March 31st 2012), Derby Cycle saw revenues rise to €134.2million from €114.4million year-on-year, representing a 17.3 per cent increase.
Taken in isolation, quarter two saw Derby Cycle perform well as spring began, with revenue rising 22.6 per cent (from €76.6million in the prior year to €93.9million).
The numbers of bikes sold grew 3.4 per cent year-on-year in the half year financials, up to 252,248 units.
Derby Cycle’s electric bike sales continued to grow too, up a whopping 35.5 per cent in the six months to March 2012 – to 44,385. Outside Germany, 8,805 units were sold, representing a 43.6 per cent rise.
Overall, international sales grew by 12.5 per cent (to €41.3million).
Materials costs rose 25.4 per cent to €107.1million, a more modest increase after the 69.4 per cent in the previous period.
"Our operating business registered growth both in Germany and on foreign markets," said Mathias Seidler, CEO of Derby Cycle. "With significant growth in the sales of electric bikes, we have also further expanded our leading position in this high-revenue growth market."
Looking ahead, Derby Cycle said: "The company expects further sales growth in the 2011/2012 financial year, driven particularly by the business’s advancing internationalisation, and continued high demand for electric bikes. Pre-orders that we have received to date confirm us in this view.
"The ongoing state debt crisis and its effects on the economic situation, prove to be a topic of controversial discussion, including among experts.
"Such discussions also do not exclude a massive cooling of economic growth, with corresponding consequences for production and consumption. Should it come to such an economic downturn, Derby Cycle would also be unable to decouple from such trends.
"On this basis, the company is assuming sales revenue of EUR 250 million to EUR 270 million for the current 2011/2012 financial year, whereby the relative sales share of both segments outside Germany will rise. The company anticipates that its 2011/2012 EBIT margin will lie between eight and nine per cent."
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