Accell Group has announced that it is ‘further adapting its North American organisation to the changed market conditions’ and is undertaking a restructure in North America. Next to an overall tough market for bicycles, particularly sales via traditional distribution channels (e.g. bike dealers), the company cites that it has been under pressure for a longer period of time in North America.
A release from Accell Group added, ‘As such, we also recently saw an unanticipated contract termination by a large multisport chain… On the opposite, online sales (via own webshops and third party online stores) and sales of e-bikes are growing fast. In addition, the related cooperation with Beeline for home deliveries, ready-to-ride bike assembly and service is doing well.’
Accell Group added that these positive developments cannot yet fully compensate for the lower sales in general. Hence, the company is further adjusting its American organisation.
‘Senior management has been replaced and the activities in North America will be fully integrated. Inventories destined primarily for the multisport chains will be scaled down as quickly as possible.
Ton Anbeek, Chairman of the Board of Directors said “During the past year, a lot of hard and goal-oriented work has gone into the execution of our new strategy in North America and Europe. In the years to come, we expect to show a clear trend reversal of our group performance in terms of turnover, results and working capital. In North America we see sound opportunities for omnichannel, while the evolution of the e-bike segment is running a few years behind the e-bike segment in Europe. As such, the region offers us clear potential for future growth.”
Accell Group expects group turnover in the second half of the year to exceed that recorded in the second half of 2016. However, the underlying operating result for 2017 will be affected by the strong sales decline in North America. The restructuring of the American organisation and the scale-down of inventories is expected to have an impact of around €5 million. As a result, the underlying operating result for the full year will be lower than in 2016.
The operating result (before interest and taxes) for 2017 will in addition be influenced by higher costs in the second half of the year related to the implementation of Accell’s new group strategy. A company release added… ‘We do not anticipate to fully complete the reduction of inventories in North America during the remainder of 2017, which will have a negative effect on working capital at year-end.’
Accell Group NV focuses internationally on the mid-range and higher segments of the market for bicycles and bicycle parts & accessories. The company claims leading positions in the Netherlands, Belgium, Germany, Italy, France, Finland, Turkey, the United Kingdom and the United States. In Europe, Accell Group is ‘the market leader in the bicycle market in terms of turnover’.
Accell Group’s best known brands are Batavus (Netherlands), Sparta (Netherlands), Koga (Netherlands), Loekie (Netherlands), Ghost (Germany), Haibike (Germany), Winora (Germany), Raleigh and Diamondback (UK, US, Canada), Lapierre (France), Tunturi (Finland), Atala (Italy), Redline (US) and XLC (international).
Accell Group and its subsidiaries employ approximately 3,000 people in 18 countries worldwide. The company has production facilities in the Netherlands, Germany, France, Hungary, Turkey and China. Accell Group products are sold in more than 70 countries. The company’s headquarters are located in Heerenveen (the Netherlands). Accell Group shares are traded on the official market of Euronext Amsterdam and included in the Amsterdam Small Cap index (AScX).
In 2016, Accell Group sold around 1.5 million bicycles and recorded turnover of over €1 billion.
