On July 23rd, the leading European bicycle company, Accell Group N.V. reported their half-year 2021 results. Headquartered in Heerenveen, the Netherlands, Accell Group noted their net sales have increased by 3.3%, or € 699 million. Accell also noted an EBIT growth of 35.5% and a continued profit accretion and margin expansion amidst current global supply issues relating to the worldwide epidemic.
Some highlights of this report include Net sales of € 699.1 million, up 3.3%. Noting current supply and logistical issues hampering further expansion. Accell’s EBIT margin is up 208 bps at 8.7%. Implicating an EBIT of € 61.1 million due to higher sales and improved added value. Lastly, a net profit of € 44.2 million, up 54.3% mainly driven by higher EBIT.
It was noted that trade working capital improved slightly to 29.6% from 29.7% by end-June 2020. Amongst others driven by lower debtor positions onset by higher component inventory. Furthermore, there was a negative free cash flow of € 71.9 million. Which resulted in higher cash out as a consequence of inventory build-up, partly offset by higher EBITDA
Ton Anbeek, CEO of Accell Group states “despite lockdowns and closed bike shops in various countries in the first four months of the year, demand for bikes and parts & accessories remained strong across Europe and segments.” Anbeek notes that “global supply chain constraints for critical components have limited product availability and have therefore impacted our bicycle sales in H1. Our added value rebounded thanks to lower discounts and pricing actions taken, which have more than offset increases in material prices and additional supply chain expenses.” A combination of Accell’s “continued focus on cost management has resulted in a substantial EBIT increase and further margin expansion.”
Anbeek thanks the multiple international recognitions and awards Accell Group’s “new and innovative bike collections' ' have received. Such as the Bike of the Year award for the Batavus Dinsdag. And another design & innovation award for their Haibike AllMtn 7, Lapierre Overvolt, and Koga Pace. Accell Group states they will also continue their website's digital rollout in parallel to the release of Lapierre and Sparta.
Lastly, Anbeek states the demand for Accell Group’s bicycle brands and products continues to be demanded across Europe. Anbeek says this “clearly reflects increased recognition of the underlying positive impact of cycling on health, business, and the environment.” Luckily for Accell Group, and with the release of their promising new figures, they are “well on track” to achieving their 2022 goals.
