Most of the bigger publicly-listed bicycle companies have now posted financial results for 2016. Overall last year was a difficult year in the bike industry with many companies posting sales and financial results that have declined from the previous year. The most universal positive aspect of 2016 for these bicycle firms was the continuing growth of e-bike sales. This is most keenly highlighted by the financial results which Accell Group released on March 10. E-Bike Sales Push Accell to Record RevenuesAccell Group announced that in 2016 it passed the one billion euro net turnover barrier for the first time in the company’s history. A statement released by the company noted that in 2016 net turnover increased by 6.3% to €1.05 billion largely due to higher sales of (sports) e-bikes and advanced sports bicycles, while demand for regular (non-e) bikes and simple sports bikes declined. Accell Group CEO, Rene Takens commented in the statement, “One of the main drivers of this turnover record was the constantly growing contribution from e-bikes and bikes in the higher segment of the market in particular. We are clearly benefiting from our leading position in the field of e-bikes, which recorded turnover growth of 33% and now represents 41% of our total turnover. Turnover in e-performance bikes increased by 70% in the year under review. Germany is the biggest driver behind the turnover growth.” The total number of bicycles sold by Accell declined to 1,457,000 in 2016, from 1,642,000 in 2015. Regular bicycle sales fell by 11% while turnover in e-bikes was up 33%.The turnover contribution from e-bikes increased to 55% in 2016, from 45% in 2015, and the average price per bicycle increased by 23% to €536, from €437 in 2015. Accell Group’s operating result—excluding exceptional income and expenses, came in 5% higher at €65.9 million and net profit was €32.3 million—the same level as in 2015. “Cycling will continue to be popular for mobility purposes, recreational and sports use in the years ahead. We expect to be able to maintain our lead thanks to our high-quality products, plus we expect to be able to add innovations to make cycling for various purposes even more attractive.” noted Rene Takens, “Based on these trends, we expect to see a continued increase in turnover and operational results in 2017, barring unforeseen circumstances.” Giant’s 2016 Revenue Slips by 5.57%

Giant Manufacturing announced that total group revenue in 2016 slipped by 5.57% compared to 2015. Although in 2016 the bicycle industry in general went through something of a downturn resulting in poor sales for most major bicycle and parts companies, Giant’s announced 2016 revenue of NT$57.09 billion (approx US$1.8 billion) was better than many analysts had expected. Based on the low base period in 2016, the new CEO Young Lin has said that the Chinese market should be able to grow in 2017, and Giant expects to see growth this year. Merida Sales Slump by 26%

Merida announced the Group’s total sales for the 2016 totaled 1,601,623 units, down 26.97% from 2015. Net sales amounted to NT$22.82 billion (approx. US$716 million), down 18.78% compared to the previous year. In terms of the Taiwan plant, the total number of sales in 2016 was 866,076 units, down -20.18%. The accumulated net revenue was just under NT$17 billion, down 14.24% from the previous year. However, in better news for Taiwan’s second largest bicycle manufacturer, Taiwan’s Central News Agency are reporting that European investors have changed Merida’s rating from “Reduce” to “Acquire” and increased the target price from NT$140 to NT$188 in anticipation of a more favorable 2017. Shimano Sales Drop by 14% in 2016

Shimano announced a large drop both in sales revenue and profits last year its 2016 end of year financial statement. Net sales for the year decreased 14.7% from the previous year to 322,998 million yen, while operating income (operating profit) decreased 24.1% to 64,546 million yen. A press release issued by the company noted that in Europe bad weather in the early spring had undermined bicycle sales, resulting in a continuing high level of distributor inventories. However, the good weather from July onward, meant sales became brisker, and European distributor inventories levels adjusted to an appropriate level by the end of the year. In North America, inventory levels also adjust to a lower level towards the end of the year. Retail sales of bicycles were generally slow throughout Asia, and the company noted both China and Japan’s lackluster sales of sport bicycles. For 2017, the Shimano statement forecast a slight—2%, increase in sales Dorel Posts 2016 Loss

While Dorel Industries announced a group revenue of US$2.60 billion in 2016—down 3.0% from US$2.68 billion the previous year, Dorel Sports, the division which includes Cycling Sports Group and the brands of Cannondale and GT, posted a 6.1% revenue drop, resulting in an operating loss of nearly $34 million. In 2015, Dorel Sports made an operating profit of nearly $11 million. Full year revenue for Dorel Sports declined by US$61.2 million to US$939.0 million, while organic revenue fell by approximately 8.4% after removing currency rate fluctuations. A statement released by the company noted that, “The main causes were the change in dealers’ purchasing patterns, industry-wide discounting due to excess inventories at suppliers and retailers during the first half of 2016 and a generally soft global bike market overall.” Dorel President and CEO, Martin Schwartz commented that “Dorel Sports worked throughout 2016 to position itself for a rebound in earnings in 2017. Excess inventories in the industry have been reduced and thus rampant discounting should not be repeated. Improvements made in cost control and supply chain management are expected to contribute to the operating profit, helping to offset any sales softness, should this occur. It is early in the year and visibility for the full year is difficult, but we are confident in the direction of the segment.”