Parent of Haibike, Koga & Raleigh, Accell Group, has today released its financial results for the first half of year with its core business seeing an increased turnover up 8.8%.
The Group’s core business net turnover for the year to date stands at €650.9 million, with and added value up to 31.2%.
Meanwhile, Accell’s non-core North American business’ turnover decreased by nearly 16% to €31.8 million, making up just 5% of the group net turnover.
Ton Anbeek, Accell Group CEO, said: “Our ‘Lead Global, Win Local’ strategy is paying off with all the key performance indicators moving in the right direction reflecting sound growth, stable volumes, margin expansion, a higher EBIT and lower wokring capital as % of net turnover for both our core business and the total group. Also cost as a % of net turnover has stabilised.”
According to Anbeek, the company has seen double digit growth in most of its core regions, due to better availability of key products. Accell has managed to reverse the ‘downward turnover and volume trend’ in the Netherlands due to strong contributions from its Koga Sparta and Batavus brands.
However, growth was hampered in the DACH region due to delayed Haibike and Ghost model introductions, and a strategic review of the Group’s North American business is planned this quarter, after performance didn’t improve.
Anbeek continued: “Our supply chain team is on track with creating efficiencies and delivering the targeted €12 million savings for 2019. The work on complexity reduction and the introduction of our frame platform strategy are also progressing according to plan.
“Finally we have started the roll out of our new IT systems which will improve our operational performance and pave the way for our digital roadmap.”
The results reveal a ‘continuing shift’ in consumer demand from traditional bikes to e-bikes and e-cargo bikes, with like-for-like e-bike sales up 16% and e-cargo bike sales up 47%. Meanwhile, traditional bike sales in H1 were down 13% in value, now representing only 16% of Accell’s core business turnover.