Leading European bicycle company, Accell Group, has reported a 7.5% uplift in net turnover increased to €1.1 billion. The company reported contributions from all regions and with e-bike and (e-cargo bike) sales as main growth drivers.
Ton Anbeek, CEO Accell Group said “We are well on track with our ‘Lead global. Win local’ strategy. In 2019, we booked higher top line growth, a higher added value and a solid EBIT. Excluding one-offs, EBIT was slightly behind last year due to additional – yet planned – investments and costs made under our strategic agenda and transition roadmap.
“We completed the disposal of the North American business (discontinued operations) which allows us to now fully focus on executing our strategy.
“Our supply chain team continued to create material efficiencies and delivered another €13 million in structural savings in 2019, which come on top of the € 12 million of supply chain savings realised under our strategic plan in 2018. That said, trade working capital increased due to substantially higher inventories caused by delayed introductions of new innovative bike models and lower sales than forecasted in the second half of 2019.
“As a result average working capital for the year was up 70 bps. Improvement plans are being executed on sales and operational planning as well as on innovation processes in order to reduce TWC levels again.
“While entering 2020, we have the majority of additional expenses under our strategic agenda now behind us. We are bringing a number of delayed innovations to the markets in the upcoming bike season, including our next generation e-MTB Haibike Flyon. In addition, we introduce several new innovative models this season including our new e-cargo bike Carqon with a unique carving mechanism for greater stability and comfort.
“In combination with continued growth momentum in both our B2C and B2B markets we believe to be well on track to meet our medium term financial targets.”
