Netherlands-based Accell Group N.V., which claims to be the leading seller of bicycles in Europe, said that that its turnover and profit in the first months of 2008 were higher than in 2007 thanks in part to its recently completed acquisition of Ghost Mountainbikes.
In the first months of 2008, both turnover and profit increased due to higher sales of bicycles, bicycle parts and accessories. Demand was particularly high for premium bicycles, which includes electric bikes. Fitness equipment sales in the first months of the year lagged in terms of expectations. This impact is relatively minor, as the fitness activities represent less than 10 percent of Accell Groups total turnover.
The acquisition of Ghost Mountainbikes (Ghost), which was announced in February, means Accell Group has added an international top brand in high quality mountain bikes and racing bicycles to its brand portfolio. Ghost will be consolidated as ofMarch 1 2008 into Accell results. It is expected that the recently completed acquisition will contribute to growth in 2008.
As indicated earlier, Accell Group expects a further increase in turnover and net profit from ordinary operations in 2008. Accell Group aims to specify its expectations in more detail at the publication of its semi-annual results on 23 July 2008.
“Last year, the first months were particularly positive, due in part to the relatively high temperatures and dry weather,” said René Takens, chairman of the executive board of Accell Group:. “The fact that turnover and results are higher this year demonstrates the attractiveness of our top brands. The persistently strong demand for premium bikes and electric bikes and the sound availability of our bikes in particular have contributed to the higher result in the first months of 2008. As of March, we also noted a positive contribution from the recently acquired international top brand Ghost.”
Accell Group manufactures at plants in the Netherlands, Germany, Finland, France and Hungary. Its core markets are the Netherlands (44% of total sales), Germany (21%) and France (11%). Other EU countries, including Belgium, Denmark, Finland, Austria, Spain and the U.K. contribute 14% of total turnover. The remaining 10% of turnover comes from countries outside the EU, including Switzerland, the U.S.A. and Canada.
In Europe, Accell Group is the market leader in the market for bicycles and enjoys a position in the top of the market for home use fitness equipment. In 2007, sales amounted to 476.1 million and the net profit from ordinary operations amounted to 24.4 million. Accell Group shares are traded on Euronext Amsterdam.
