HEERENVEEN, Netherlands (BRAIN) — Following a recapitalization agreement in October and a 390 million euro loss in 2023, Accell Group's CEO said the company's recovery is on the way.
"2024 was a challenging year for both the bike industry and Accell," said CEO Tjeerd Jegen in a business update. "However, our recovery is well on track across the business. We've normalized stock levels, made significant progress with our recapitalization and are proud to see one of the key Accell brands, Lapierre, return to the UCI World Tour. Also, the Babboe recall is nearing completion, with the launch of new models expected by mid-2025. As we look ahead, we are well positioned to benefit from the favorable macro trends and continue building on this momentum in the new year."
Accell recently released audited annual financial results showing a revenue decline of about 10% to 1,294 million euros ($1.34 billion). Not excluding write-offs, the company recorded a 390 million euro loss. With write-offs totaling 344 million euros, the earnings were 12 million euros, down from 140 million euros in 2022. The write-offs include charges for obsolete stock, restructuring costs resulting from the integration of Raleigh UK, Ghost and Velosophy, and a global recall of Babboe cargo bikes due to frame failures.
The company said, "During 2024, the industry downturn continued. The market still faced high inventories at both manufacturers and dealers, while global economic factors impacted demand. The consequence of this was significant discounting and, ultimately leading to another year of decline. To weather the difficult market conditions, Accell has further streamlined its organization, transforming into an integrated player. By leveraging its strong manufacturing footprint and reducing operational complexity, the company is better positioned to drive efficiency and deliver value. Additionally, a continuous savings program was started, aimed at enhancing structural competitiveness.
The company said its recapitalization program is entering a new stage that includes a meeting of the senior lenders to vote on the plan and a court hearing to sanction the plan, both scheduled for this month. It also said all its bike brands now benefit from joint stock management, and the stock levels of finished bikes, which peaked at the end of 2023, have now been brought back to normalized pre-COVID levels. Accell's inventory of finished bikes has declined from 340,000 in November 2023 to 169,000 in November 2024.
Accell's brands include Haibike, Winora, Ghost, Batavus, Koga, Lapierre, Raleigh, Sparta, Babboe and Carqon. Lapierre is returning to the UCI World Tour this season as the official bike sponsor for Team Picnic PostNL. The team will also use some accessories from XLC, Accell's P&A brand.
