HEERENVEEN, Netherlands (BRAIN) — Accell Group is reporting record revenues and profits in the first half of the year, despite a sales slump in North America. The company said e-bike sales drove much of the increase. Electric bike sales now account for 43 percent of Accell's business, and sales of performance e-bikes (Accell calls them "e-performance bikes") are one of the fastest growing categories. Sales of traditional bikes fell 15 percent globally.
The Dutch company said global revenues were up 10 percent to 629.7 million euros ($693 million) in the half. Sales in Germany were up 20 percent and the rest of Europe saw a 16 percent increase. The company said the increases were entirely organic. Net profit rose 7 percent to 34 million euros.
The company noted that sales declined in North America. An exception was sales of the Ghost brand, which is sold exclusively by REI in the U.S. and MEC in Canada:
Turnover in North America fell by 3%. The Diamondback brand was confronted by two major bankruptcies of multi-sports chains, which led to USD 2 million in direct costs. On top of this, the company also faced indirect costs as a result of the loss of sales to those two chains and the price pressure in the market resulting from the liquidation sales of the inventories. The Ghost brand, which was launched in North America last year, recorded an increase in bike sales. Turnover from Raleigh bikes sold to the specialist retail trade was down, due in part to competitive pressures and difficult conditions in the North American specialist retail sector. Accell Group has taken the first steps towards omni-channel sales at the Raleigh brand, which has traditionally only delivered to bike dealers.
The company planned a press conference and conference call for later Friday in Amsterdam to go over the figures with investors.
