Orbea sticks to its plans and maintains headcount & margins
Orbea saw a modest decline in turnover in 2023 but held “steadfast” in maintaining margins, yielding results in line with the average of its previous three years, which surpassed industry standards, it said.
Whereas headcount at many bike companies has reduced, Orbea still records a workforce in excess of 1,000 employees (80% in the Basque Country), the same number it was sharing last year.
Orbea noted that 2023’s turbulent conditions saw market instability, excess supply and widespread discounting among competitors that deteriorated margins and, in some cases, questioned the sustainability of business. The firm said – in its 4 May General Assembly – that it continued to launch new products that garnered acclaim and collaborated closely with distribution partners to overcome challenging market dynamics.
Plans are still on track of its planned initiatives thanks to its increased financial resources, with expanded manufacturing and logistics capabilities in the works, as well as development of new
technologies and investment in employee development. Notably, circa 20% of
generated resources are continuously allocated to various unity and social action funds
mandated by the cooperative.
MORE OF THE SAME
As 2024 unfolds amidst similar market conditions, with some optimistic projections of market
stabilization at the end of the year, Orbea said it remains vigilant, collaborating closely with
distribution partners and doubling down on global recognition.
Partnership with teams like Lotto Dstny elevate Orbea’s presence on the World Tour, while important product launches have the potential to energise the market, it added, pointing to the recent launch of Diem, Orbea’s commitment to urban mobility; the debut of a new Rise, the model that it said has revolutionised the category of light electric bikes; as well as other innovations on the horizon that “reaffirm Orbea’s position as an industry trailblazer”.
Meanwhile, the Orbea’s CEO transition is now complete, with Jon Fernandez having handed over the reins to Daniel Martinez.
