Accell Group N.V. of the Netherlands reiterated its profit and turnover expectations for 2009. Based on the turnover for the period up to and including October and the prospects for the last two months of the year, Accell Group expects a higher turnover and an increase in net profit of around 10% compared to 2008.
“Turnover through October has developed in line with our expectations,” said Acell Group CEO ReneTaken. “We saw an increased turnover at both bicycles and bicycle parts & accessories. The use of bicycles remains increasingly popular for health and mobility purposes. We also notice an increased use of racing bicycles and mountain bikes for sports purposes, both for leisure and competition.
“The interest in electric bicycles continues unabated. We have significantly extended our E-bike product lines with E-bikes in several price ranges. With our mostly in-house developed innovative technologies, comfort and contemporary design, we offer customers the best quality and most attractive product range. This gives us a competitive edge. We will keep investing to maintain and strengthen our leading position in the market.â€
Contrary to the turnover increase in the bicycles and bicycle parts and accessories segment, the sales in the relatively small fitness segment through October were lower than in 2008. This is partly due to deteriorating market conditions and partly because of the loss of a number of international distributors, who were no longer able to finance their purchasing. At the fitness division, important cost reductions and a reduction of working capital have been realised. This segment accounts for less than 5% of group turnover.
The new 2010 bicycle collections, which were presented in September 2009, were well received by dealers. The order intake for the new season is currently at a similar level as last year.
Taking into account the normal effects related to the seasonal distribution of sales throughout the year, there were no significant changes in Accell Groupâ€s financial position for the past period up to and including October 2009.
As discussed, Accell Group reiterates its earlier expectations. Barring unforeseen circumstances, the company expects a higher turnover and an increase in net profit of around 10% for the full year 2009 as compared to 2008.