Accell Group N.V. said its turnover and profit in the first months of 2009 increased, compared with the same period of 2008.
After a long winter, mid-March saw a good start in bicycle sales. René Takens, Chairman of the Executive Board of Accell Group: “So far, we are still seeing clear evidence that weather allowing the bicycle remains a popular means of transport, even in these economically challenging times, and that consumers are willing to spend money on it.
The use of bicycles continues to increase. Bicycles are an affordable alternative to car-use for short trips and promote a healthy physique. The demand for electric and sports bicycles in the higher segment remains strong. Bicycles for special target groups with a particular (extra) functionality or a special design are also popular. We continue to expect a further increase of turnover and profit in 2009.”
In addition to increased bicycle sales, Accell Group also noted a rise in the turnover in bicycle parts and accessories. When the purchase of a new bicycle is postponed, more parts and accessories are bought to extend comfortable use of the existing bicycle.
Sales of fitness equipment were down in the first months of the year, compared to the same period in 2008. As in the last months of 2008, sales of fitness equipment were affected by worldwide economic conditions. The effect of the drop in turnover in fitness equipment on Accell Group as a whole is limited, as the fitness activities represent only a small part (7%) of Accell Groups total turnover. Last year, the organization of the fitness activities has been adapted to a lower turnover level, and also this year the organization will be closely monitored.
Taking into account the normal effects related to the seasonal distribution of bicycle sales throughout the year, there were no significant changes in Accell Groups financial position in the first months of 2009.
The growth in turnover and profit was both organic and due to the effects of consolidation of acquisitions made in 2008. The first months of 2009 show that the trends from which Accell Group benefits continue undiminished in its markets. Increasing awareness of recreation, mobility, health, the environment and the ageing population stimulate bicycle use. Accell Group maintains its expectation that turnover and profit will increase compared with 2008, barring further economic developments and unforeseen circumstances.
