HEERENVEEN, Netherlands (BRAIN) — Accell Group N.V. reported total group revenues of 683 million euros ($766 million) in its first fiscal half, up 7.4% from the same period last year. Net profit for the group was up 16.5% to 29.7 million euros.
Accell's North American operations had sales of 31.8 million euros, down 15.9% from the period last year.
Accell now calls its North American business "noncore;" its core business (global minus North America) was up 8.8%, with earnings before interest and taxes coming in 12.6% higher than last year.
Ton Anbeek, the CEO of Accell Group, said, "Our 'Lead global. Win local' strategy is paying off with all key performance indicators moving in the right direction reflecting sound growth, stable volumes, margin expansion, a higher EBIT and lower working capital as percent of net turnover for both our core business and the total group. Also cost as a percentage of net turnover has stabilized."
Anbeek said the performance in North America did not improve in the half and said he expected to complete a strategic review of the North American operations in the third quarter. As part of that review, Accell announced last week that it had sold the Canadian registrations for four bike brands — Redline, Raleigh, Diamondback and IZIP — to Canadian Tire for $16 million. That transaction will be recorded in Accell's second half earnings report.
