Derby Cycle AG, which went public in February, raised its revenue guidance for the second quarter ended March 31 to €76.6 million ($104.7mm), up 45.6 percent, or €52.6 million ($72.8mm) from the prior-year period. This correlates to €114.4 million ($156.0mm) of revenue in the first six months of the 2010/11 financial year, reflecting 40.2% growth compared with the first half of 2009/10 €81.5 million ($116.7mm).
On the basis of the successful second quarter and the orders already on hand from specialist cycle retailers and wholesalers, the company's management board raised its revenue forecast for the financial year that ends on Sept. 30, 2011 from at least €200 million to at least €220 million (previous year: €173.2 million). In terms of EBIT margin, Derby Cycle continues to assume a year-on-year improvement to between 7% and 8% (previous year: 7.0%).
This would represent growth of at least 27% over 2009/10 revenues. The company said rising global demand for electric bicycles and sports cycles, a strong consumer climate, and the early onset of summer temperatures in 2011 are contributing to growth. The German Cycle Association (ZIV) recently estimated e-bikes could make up between 10 and 15 percent of the overall cycle market in Germany, or 400,000 to 600,000 bikes a year.
Derby Cycle is a Germany's largest bicycle manufacturer in terms of revenues, and one of the leading manufacturers in Europe. All models are developed and assembled at the company's base in Cloppenburg, Germany, sold under the brands Kalkhoff, Focus, Raleigh, Univega and Rixe and distributed through specialist retailers. In fiscal 2009-10 it derived 72.6 percent of revenues from Germany and 27.4 percent abroad.
