Accell Group N.V. reported sales rose 3.3 percent in the first half of 2021 as supply and logistical issues hampered further uplift.
Sales for the European bicycle giant that owns brands Haibike, Koga, Batavus, and Raleigh, saw sales reached €699.1 million against €676.9 million in the first half of 2020.
Accell said excluding the disposal of the fitness and motorcycle parts business of Tunturi Sweden, the organic growth was 3.7 percent in the first half. Growth was mainly driven by the 29.3 percent sales increase at Parts & Accessories. Order books for e-bikes remained very strong, but sales came in 6 percent lower due to critical component shortages as a result of the global supply chain constraints. Sales of traditional bikes declined by 7 percent. Cargo bike sales came in 43 percent higher, now representing 4 percent of total net sales.
EBIT of €61.1 million was up 35.5 percent year-over-year, in part to higher sales and improved added value. EBIT margin was up 208 basis points, at 8.7 percent.
Net profit of €44.2 million was up 54.3 percent, mainly driven by higher EBIT
Trade working capital improved slightly to 29.6 percent from 29.7 percent per end-June 2020, amongst others driven by lower debtor positions offset by higher component inventory.
Ton Anbeek, CEO, Accell Group, said: “Despite lockdowns and closed bike shops in various countries in the first four months of the year, demand for bikes and parts & accessories remained strong across Europe and across segments.
“As stated before global supply chain constraints for critical components have limited product availability and therefore impacted our bicycle sales in H1. Our added value rebounded thanks to lower discounts and pricing actions taken, which have more than offset increases in material prices and additional supply chain expenses. Combined with our continued focus on cost management this has resulted in a substantial EBIT increase and further margin expansion.
“Our new and innovative bike collections again received multiple international recognitions and awards such as Bike of the Year for the Batavus Dinsdag and Design and Innovation awards for our Haibike AllMtn 7, Lapierre Overvolt and Koga Pace. We also continued our digital rollout at pace with the launch of new Lapierre and Sparta websites.
“Overall demand for our bicycle brands and products remains high across Europe. This clearly reflects the increased recognition of the underlying positive impact of cycling on health, business and the environment. We are well on track to meet our 2022 targets.”
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Photo courtesy Accell Group
