Derby Cycle AG reported revenues grew 30.5% to €37.8 million ($51.5 mm) in the fiscal first quarter ended Dec. 31 on soaring sales of e-bikes. Germany’s largest bicycle manufacturer said that despite a 39.0% increase in cost of materials, it was able to grow EBIT by 52.3% to €1.9 million ($2.59 mm).
EBIT as a share of revenues rose to 5.0%, up 70 basis points from the year earlier quarter. Net profits for the quarter reached €1.0 million, up 28.4% from €800,000 ($1.09 mm) in the first quarter of 2010.
The company sold 80,517 bicycles and 12,634 e-bikes in the quarter, up 5.8% and 138.6% respectively. Derby Cycle markets the Kalkhoff, Focus, Univega, Raleigh and Rixe brands to IBDs in more than 40 countries and estimates it controls about 20% of Germany’s rapidly growing e-bike market. In the United State is has focused on developing the Focus brand.
Derby Cycle, which went public Feb. 4 by listing 7.5 million shares on the Frankfurt Stock Exchange. Those shares closed at €12.38 Friday, giving the company a market cap of nearly €93 million, or $125 million. The company plans to invest much of the proceeds from the IPO in the rapidly growing e-bike, or “pedelec,” business and international expansion.
