Accell Group reported both sales and profits grew in the first quarter ended March 31 compared to the same period of 2014 in a brief update issued prior to its annual shareholder meeting.
The Dutch company said favorable weather stimulated bicycle sales in Europe, where it sells more bicycles than any other company under more than a dozen brands.
“We have seen a good start to the year 2015,” said René Takens, Chairman of the Accell Group Board of Directors. “Sales of electric bicycles in the Netherlands and Germany increased. At the same time, the electric bicycle is also gaining popularity in countries where the market for electric bicycles has so far been limited, such as France, the United Kingdom and the Scandinavian countries.
Accell also saw a clear increase in demand for sports bikes and an increase in sales of parts & accessories, partly due to the acquisitions of Comet in Spain and CSN in Denmark. The higher sales helped to boost operating profit in the first months of 2015, enabling the company to maintain its forecast, which calls for sales and profits to continue to increase in 2015.
Takens noted that Accell Group had raised prices at several of its brands to account for the sharp rise in the value of the dollar against the euro. The company pays for the majority of its raw materials in dollars but earns most its sales in the euro. While the company hedges its currency risk, Takens noted that additional purchasing due to higher sales have to be paid at current exchange rates.
“The recommended sales prices at a number of our brands have therefore seen an increase this season, in order to partly charge the increase in costs which resulted from the strong fluctuations in the US dollar exchange rate,” he said. “This limited the impact of the more expensive dollar on Accell Group’s results.”
Accell Group saod the integration of North American operations into Accell North America is now virtually complete.
