- CONTINUED PROFIT ACCRETION AND MARGIN EXPANSION AMIDST GLOBAL SUPPLY ISSUES
HEERENVEEN (THE NETHERLANDS), 23 July 2021 – Accell Group N.V., the leading European bicycle company with well-known brands such as Haibike, Koga, Batavus and Raleigh, today announces its half-year 2021 results.
HIGHLIGHTS
Net sales of € 699.1 million, up 3.3% with supply and logistical issues hampering further uplift
EBIT of € 61.1 million, up 35.5% thanks to higher sales and improved added value, EBIT margin up 208 bps at 8.7%
Net profit of € 44.2 million, up 54.3% mainly driven by higher EBIT
Trade working capital improved slightly to 29.6% from 29.7% per end-June 2020, amongst others driven by lower debtor positions o set by higher component inventory
Negative free cash flow of € 71.9 million, higher cash out as a consequence of inventory build up, partly offset by higher EBITDA
Ton Anbeek, CEO Accell Group: “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 across segments.
As stated before global supply chain constraints for critical components have limited product availability and 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. Combined with our continued focus on cost management this has resulted in a
substantial EBIT increase and further margin expansion.
Our new and innovative bike collections again received multiple international recognitions and awards, such as Bike of the Year for the Batavus Dinsdag and design & Innovation awards for our Haibike AllMtn 7, Lapierre Overvolt and Koga Pace. We also continued our digital roll out at pace with the launch of new Lapierre and Sparta websites.
Overall demand for our bicycle brands and products remains high across Europe. This clearly reflects the increased recognition of the underlying positive impact of cycling on health, business and the environment. We are well on track to meet our 2022 targets.”
