The Netherlands-based bicycle manufacturer, Accell Group reported that first half sales rose to 204.3 million ($251.2 mm), a 24% increase over the 165.3 million ($175.7 mm) reported in 2003.
The company, which has been purchasing bicycle manufacturers and parts distributors throughout Europe, stated that its organic growth amounted to 10%. Net profit increased by 49%, to 7.5 million ($9.2 mm) compared to 1st half 2003 of 5.0 million ($5.5 mm). EPS was to 2.21 ($2.72), a 46% increase over the first half of 2003 at 1.51 ($1.65).
Accells three most recent acquisitions, Tunturi, Junker, and F. van Buuren & Co. all contributed to the bottom line in this period. Revenues in the Netherlands grew “both autonomously and through acquisitions,” while the German market showed some improvements in results. Bicycle sales in France were described as “good, especially in the specialist trade segment.” Revenues in other countries were said to be “up on 2003 as a result of the Tunturi acquisition.”
René Takens, Chairman of the Board of Management of Accell Group said that currently the European markets are, “reticent about spending money and are more inclined towards saving.” He also stated that this trend is not likely to dissipate, and in the second half of 2004, consumer confidence is likely to remain depressed.
Essential elements in Accells strategy going forward include, a focus on expanding the strong brand portfolio, realizing economies of scale through synergies in portfolio management, logistics and procurement. In addition to trying to maintain organic growth, the company will continue to actively pursue acquisition candidates in the fields of bicycles, bike parts and accessories, and fitness equipment.
