Derby Cycle, which has upped its sales guidance twice since March on surging demand for electric and high-end bicycles, reported its first half sales rose 40.3 percent to €114.4 million ($156 mm) in the first half ended March 31.

 

Germanys largest bike maker reported a surge in sales by its U.S. subsidiary helped grow revenues outside Europe by 171.9 percent to €3.9 million ($5.3 mm). That nearly doubled Rest-of-World segment sales to 3.4 percent from 1.8 percent of total sales.


Sales growth accelerated in the second quarter, when a surge in orders from bike dealers pushed sales to €76.6 million, up 45.7 percent.  Sales grew fastest outside of Germany.  In the rest of Europe, for instance, sales reached €32.7 million ($45 mm), up 47.6 percent from the first six months of 2010/11. Derby said that boosted share of total sales 140 basis points to 28.6% in the first half of 2010/11.


The company said unit shipments of its electric bikes doubled again in Europe during the first half. In Germany, the company shipped 32,762 e-bikes, up 133 percent year-on-year while shipments outside Europe rose 140 percent to 6,132 units.
Growing demand for higher end e-bikes and top-of-the line sports bicycles that use more expensive materials drove the material cost ratio up 100 basis points to 69.1 percent of sales.

 

Still, EBIT reached €10.5 million ($14 mm), up 65.4 percent from €6.3 million in H1 last year. That boosted the EBIT margin 130 basis points to 9.1 percent in the first six months of fiscal 2011. Consolidated net income for the period rose by 42.4 percent from €4.2 million ($5.7 mm) in the first half of financial year 2009/10 to €6.0 million in the first half of 2010/11.