HEERENVEEN, Netherlands (BRAIN) — Accell Group announced flat sales for the first half of 2018, with North American sales down sharply over the same period last year due to the loss of Dick's Sporting Goods sales. Accell is the parent company of Raleigh, Diamondback, Haibike, iZip, Ghost, Lapierre and other brands.
Global sales were 636 million euros ($745 million), up 2.7 percent at constant exchange rates or up 0.3 percent in local currencies. Profits were 42.7 million euros, down 10 percent, which the company blamed on one-time restructuring expenses.
In North America, sales were down 22.5 percent from last year, to 44 million euros. Sales in the Netherlands were down 10 percent, while Accell saw solid gains in Germany and the rest of Europe.
The company remains bullish on e-bikes — in particular higher-end sport models and the developing e-road market. It also is bolstering its position in the e-mobility market with the recent purchase of Velosophy, a Dutch cargo bike brand (That purchase was in July, after the end of the first half year).
Accell also said it is making preparations to launch Beeline Bikes in Europe soon. Accell bought the U.S.-based mobile service company in March.
"For us 2018 is clearly a year of transition, a period we will use to smartly reorganize our group and a period in which costs will outpace any concomitant income," said Ton Anbeek, the chairman of the board of directors for Accell.
"Over the past six months, we have strengthened our management team in a number of crucial places and created a mix of young talent and solid experience, which has also created a completely different dynamic and added new energy. With this new team, we will accelerate the implementation of our transition and the rollout of our new strategy."
More information: Accell half year results news release.
