Accell Group revenue up 19% in first half 2012

Leading European bike business Accell Group NV has reported a 19% increase in turnover to €445.6 million in the first half of 2012. The company noted that 2% of this revenue gain was organic. Accell Group has been boosted by a number of acquisitions, most notably Raleigh and Van Nicholas in recent months, which have been added to portfolio brands including Koga and Lapierre amongst others.

The largest part of the turnover growth came from the acquisitions of Raleigh Cycle in the second quarter of the year, and of Currie Technologies in the United States and Van Nicholas in the Netherlands both in the beginning of 2012.

Generally for the business, lower turnover in the Netherlands and France was offset by higher turnover in Germany and Asia. Reduced consumer spending due to the uncertain economic conditions, combined with very poor spring weather conditions with a lot of rain, meant bicycle sales were substantially lower than expected – especially in May and June – in many European countries.

Net profit dropped 15% year on year to reach €23.2 million in the first half of 2012. However, a number of one one-off items have impacted these figures in 2012, including: transaction costs relating to Raleigh, exceptional charges and the costs related to the reorganisation of the company’s fitness industry activities.

René Takens, CEO of Accell Group said “Cycling continues to gain in popularity both in Europe and beyond; however new bicycle purchases in a number of countries were at a lower level in the first half of 2012 compared to the previous year. The on-going uncertainty about economic developments is having a marked impact on consumer spending. Many people are choosing to postpone purchases of expensive goods such as bicycles.”

Takens added, “In most of the European countries where we are active, the weather conditions were also very much against us in the traditionally important second quarter of the year. Despite this, we managed to increase turnover organically still; the results were lower due in particular to lower turnover in the Netherlands, exchange rate effects and extra discounts.

“We expect the new annual collection and, once again, a great number of innovations to contribute to an increase in turnover and net operating result in the second half of the year compared to the same period in 2011. Whether this will be sufficient to result in a year-on-year increase in the full-year result will depend among others on the economic developments and the weather conditions.

“Based on the current state of affairs, we anticipate that the net operating result for the full year 2012 will not exceed that of 2011. In the longer term, Accell Group expects a continuation of growth in turnover and net operating result.”


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