HEERENVEEN, Netherlands (BRAIN) — Accell Group N.V. said its sales were up 38% between July and October compared to the same period last year. The company has revised up its forecast, now saying its full-year earnings before interest and taxes will exceed last year's EBIT.
The company said its year-to-date sales are up 16%. After a disastrous first quarter, which led it to cancel a planned dividend and secure a new 50 million euro credit line, its June sales rebounded and it finished its first half with a 3% sales increase year-over-year.
Accell owns the bike brands Raleigh, Haibike, Winora, Ghost, Batavus, Koga, Lapierre, Sparta, Babboe and Carqon, and the P&A brand XLC. Last year the company sold about 943,0000 bikes and had sales of over 1.1 billion euros ($1.3 billion).
"Demand across Europe for bikes and for parts & accessories has remained strong," the company announced Wednesday. "As the pandemic-related lockdowns in March and April forced many bike shops across Europe to close for business, sales volumes have also partly shifted from H1 into H2 2020. Moreover, the pandemic and the EU Commission's Green Deal have pushed interest in cycling and the use of bicycles as a solution to many societal and urban problems like obesity, pollution and congestion. Favorable secular trends and bike market drivers as electrification, bicycle infrastructure investments, government fiscal stimulation and subsidies provide a bright outlook for the entire bicycle market in the coming years."
Ton Anbeek, the CEO of Accell Group, said, "The continued strong growth in the past months is a very positive development which demonstrates more than ever that cycling is moving the world forward. In both bikes and parts & accessories we are also capturing more of the online opportunity and are making great digital progress through brand platform renewals and a group CRM roll out. In addition, we continue to take actions in order to mitigate the ongoing effects of the supply chain distortions."
The company said its guidance for the full year excludes any potential impact from COVID-19-related closures of bike shops, factories and warehouses. It also said lead times at component suppliers will continue to cause supply chain disturbances.
Accell does not typically release quarterly earnings results. It will announce its full-year results in early March 2021.
Accell's stock, traded on the Amsterdam exchange, was one of those that suffered Monday and Tuesday, apparently in reaction to the Pfizer COVID-19 vaccine news. However, the stock opened higher on Wednesday after the earnings news and forecast was released before the exchange opened. Stock quote on the Amsterdam exchange.
