Heerenveen, The Netherlands – Accell Group N.V. has announced financial results for H1 2019 showing that total group net turnover grew by 7.4% to €682.6 million and EBIT increased by 8.9% to €46.5 million. Net profit for the group was up 16.5% at €29.7 million.
Although Aceell's non-core North American business decreased by 15.9% to €31.8 million (5% of group net turnover), the company's core business saw net turnover up 8.8% at €650.9 million, added value up 27 bps to 31.2% and EBIT coming in 12.6% higher at € 7.8 million in H1 2019.
“Our ‘Lead global. Win local’ strategy is paying off with all key performance indicators moving in the right direction reflecting sound growth, stable volumes, margin expansion, a higher EBIT and lower working capital as % of net turnover for both our core business and the total group,” commented, Accell Group CEO, Ton Anbeek. “Driven by a better availability of our key products, we have seen double-digit growth in most of our core regions. In the Netherlands, we’ve reversed the downward turnover and volume trend with double-digit growth and strong contributions from our Koga, Sparta and Batavus brands. In the DACH region growth was hampered due to delayed Haibike and Ghost innovative new model introductions. In all our other core European regions we saw strong double-digit turnover growth in e-bikes. The performance in North America did not improve and in the course of this quarter we expect to complete the strategic review of this non-core business and announce our way forward.”
Accell noted that negative volume trend has been stopped with stabilized volumes in H1 2019 reflecting good market momentum and the continuing shift in consumer demand from traditional bikes to e-bikes and (e-)cargo bikes. While e-bike and (e-)cargo bike sales were up +16% and +47% (like-for-like) in value, respectively, traditional bike sales in H1 2019 were down 13% in value, now representing only 16% of its core business net turnover.
Barring unforeseen circumstances, Accell expects to see continued net turnover growth and an increase in EBIT of its core business for the year 2019. The company also expects to announce the outcome of the strategic review of its non-core North American business in Q3 2019.