The Accell Group has seen a “strong recovery” in its bike sales in May, following weak March and April sales.
Due to the various lockdowns and subsequent shop closures in several countries, group revenue in March and April came in approximately 27% lower compared to last year. Towards the end of April, shops started to reopen in Germany, Accell’s biggest market.
Group revenue growth in May was up 23% compared to last year, bringing YTD May net sales to -5%. Based on its lower YTD net sales level which entailed some adverse mix effects and due to higher costs related to the supply chain disruptions (as a result of COVID-19) YTD EBIT came in at €28 million, approximately 40% behind last year.
In order to meet the rising demand for e-bikes, e-MTBs and e-cargo bikes in its markets, Accell has increased production again from 30% in March to 70-80% of capacity taking into account the social distance requirements for staff within its production facilities. It said it anticipates ongoing global supply chain disruptions caused by the COVID-19 outbreak to hamper product availability in the second half of 2020 and to cause delays in the planned introductions of new bicycle models.
Ton Anbeek, CEO Accell Group, said: “The strong recovery of bike sales in May is clearly a very positive development, yet we are still trailing behind last year’s numbers. The duration and impact of COVID-19 currently remains unpredictable and we anticipate that our 2020 results will be hampered by the ongoing disruptions in the global supply chain.
“The current uncertain environment requires us to be more prudent and this is also why we are glad to have improved our financial buffer. At the same time, we are excited to see so many European governments, cities and consumers embrace cycling post lockdown, which contributes to a bright future for our brands and our business in the post-COVID-19 era.”
Read the latest edition of BikeBiz below: