Accell Group adds 17% in sales and 25% to pre-tax earnings in FY20

The Accell Group’s 2020 full year results painted a picture of progress for the Accell Group, which added 17% in net sales and 25% to EBIT to reach €74.7 million over last year’s €60 million.

Net sales for the Raleigh, Haibike, Koga and Batavus parent tallied €1.3 billion, largely as a result of a rapid turnaround of fortunes after the first lockdown. Net profits hit €64.8 million, in part down to favourable tax changes.

Cash flow significantly improved putting the business in good shape for the year ahead. Free cash flow rose from € 61.6 million in prior year to €195.4 million.

Looking forwards, the Accell Group believe 2022 targets to be achievable, though short-term uncertainty attributed to the pandemic lingers and the statement does view retail footfall as something to watch.

On supply, the statement adds: While customer orders continued to be strong in 2021, the increase in lead times and delayed deliveries from component suppliers, combined with logistical disruptions (which impact the entire bike industry), will drive a shift in the primary sales season (volume) to the second half of 2021, as it did in 2020.

It was a transformational year for Accell, which in March of 2020 revealed that traditional bike sales made up just 16% of turnover, with electric bike and cargo sales driving the change in sales patterns. Another notable change for the business was the PON Group selling out its 20% stake in the business, shares of which were quickly snapped up elsewhere.

Ton Anbeek, CEO Accell Group: “Once bike shops across Europe reopened after the first lockdowns, we saw a very strong recovery and sustained high demand in the second half of the year. This demonstrates more than ever that cycling is moving the world forward.

“The significant increase in sales was broad based, with strong contributions from our e‐ bike and e‐cargo bike categories and from parts & accessories. The 17% organic top line growth combined with our focus on costs and cash led to a 45% increase of our underlying EBIT and a very strong cash flow for the year, despite various pandemic‐ related supply chain inefficiencies.

“Our bike collections continued to win multiple international awards, including the Design and Innovation Award for the Haibike AllMtn 7 and the Lapierre Overvolt. We rolled out improved digital brand platforms (such as Raleigh.co.uk) and implemented CRM across the group.

“With customer orders at continued high levels, COVID‐19 is currently still impacting the stability of our value chain, as shop closures and global component delivery disruptions are resulting in longer lead times for bicycles. We continue to take actions to mitigate supply chain effects due to these disruptions as much as possible.

“With governments, cities, companies and consumers embracing the positive benefits of cycling for personal health, business and the environment, the future of Accell Group looks bright. We are confident that we are on track to meet our 2022 targets.”

Accell Group’s average sales growth over the past eight years is 8.8%. Sales growth for bikes came in at 10.9%, with e‐bike and cargo bike categories up 15% and 43% respectively, while sales of traditional bikes declined by 10%.

Turnover in parts and accessories increased by 36.2%. Growth was strong throughout the year, driven by strong sales to dealers and online shops across Europe.

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