Accell Group N.V. reported sales grew 17 percent in 2020, to €1.3 billion ($1.53 bn). The parent of Haibike, Koga, Batavus and Raleigh said the gains were due to fast recovery after first lockdowns and sustained high demand for bicycles, parts and accessories across Europe.

EBIT rose 17 percent to €74.7 million from €60.0 million in the prior year due to higher sales and focus on costs, partly offset by inefficiencies as a result of supply chain disruptions. Underlying EBIT increased 45 percent to €79.7 million, underlying EBIT margin up 121 bps at 6.1 percent.

Net profit of €64.8 million driven by higher EBIT and favorable tax effects against €2.8 million a year ago.

Trade working capital improved sharply to 19.4 percent from 32.4 percent of Net sales due to lower inventories and stricter cash management in response to the COVID‐19 pandemic.

The free cash flow of €195.4 million, improved significantly versus €61.6 million in the prior year.

Ton Anbeek, CEO Accell Group: “Once bike shops across Europe reopened after the first lockdowns, we saw a very strong recovery and sustained high demand in the second half of the year. This demonstrates more than ever that cycling is moving the world forward. The significant increase in sales was broad-based, with strong contributions from our e‐bike and e‐cargo bike categories and from parts & accessories. The 17 percent organic top-line growth combined with our focus on costs and cash led to a 45 percent increase of our underlying EBIT and a very strong cash flow for the year, despite various pandemic‐related supply chain inefficiencies.

“Our bike collections continued to win multiple international awards, including the Design and Innovation Award for the Haibike AllMtn 7 and the Lapierre Overvolt. We rolled out improved digital brand platforms, such as, and implemented CRM across the group.

“With customer orders at continued high levels, COVID‐19 is currently still impacting the stability of our value chain, as shop closures and global component delivery disruptions are resulting in longer lead times for bicycles. We continue to take actions to mitigate supply chain effects due to these disruptions as much as possible. With governments, cities, companies, and consumers embracing the positive benefits of cycling for personal health, business and the environment, the future of Accell Group looks bright. We are confident that we are on track to meet our 2022 targets.”

Photo courtesy Accel Group