ACCELL GROUP N.V. The theft of money in Taiwan had an impact on the results. The investigation into this incident has yielded no new conclusions with respect to the estimated damage and we have included a one-off item of € 4 million in the 2015 figures, as stated in our press release of 27 January 2016.
Cycling will continue to be highly popular for mobility, recreational and sports purposes in the years ahead. We expect to continue to be a frontrunner thanks to our high-quality products and we also expect to add new innovations to make cycling even more attractive for various purposes. Based on the positive underlying trends we expect a further growth of the turnover and results for 2016, barring unforeseen circumstances."
Turnover per country/region | Turnover per segment | ||||
(amounts x € million) | organic | organic | |||
Netherlands | 222 | -5% | Bicycles | 719 | +10% |
Germany | 227 | +16% | Parts & accessories | 267 | +7% |
North America | 138 | +16% | |||
Rest of Europe | 368 | +14% | |||
Other countries | 31 | +2% | |||
Total | 986 | 9% | Total | 986 | 9% |
In the bicycle segment, turnover increased by more than 9% to € 719.0 million in 2015 (2014: € 658.1 million). The largest increase was in Germany (+ 16%). The average price per bicycle rose to € 437 (2014: € 377) on the back of the increase in the turnover contribution from electric bikes. Sales of electric bikes increased by 20% and now account for 45% of total bicycle turnover (2014: 41%). Turnover in sports bikes was up 5% due to higher sales of the more expensive sports bikes of the German and French brands. Turnover in traditional bicycles came in 2% higher. The total number of bicycles sold stood at 1,642,000 (2014: 1,725,000). The segment result was 22% higher at € 56.3 million (2014: € 46.3 million). Haibike is now the largest Accell bicycle brand based on turnover of Accell Group. It is market leader in e-MTBs and also has an extensive collection of mountain bikes. Half of the Haibike turnover is realised in Germany, with the other half coming from all the other countries in Europe and even beyond.
Turnover of the total Dutch specialist retail sector remained stable, yet Accell Group's bicycle turnover in the Netherlands was down by 7%. The decline in the turnover was largely the result of the strong competition from e-bikes and the growth in popularity of other sales channels. Sales in the specialist retail sector were down partly due to the impact of the termination of the corporate bicycle scheme in 2014. This sparked a considerable increase in sales at the end of 2014, with the end of the scheme in sight. Accell Group sales in the Netherlands were down 10%.
In Germany, turnover from bike sales was up 16%. Sales increased by 21%. This increase was largely due to the strong growth in sports e-bikes at Haibike, Winora and Ghost. Sales of e-bikes produced by Accell Group brands were up 38% in Germany. This means Accell Group once again outperformed the market average in Germany. According to market estimates, the number of electric bikes sold each year in the overall German market increased to 520,000 bikes in 2015 (2014: around 450,000).
Accell Group's bicycle turnover in North America increased in the multi-sports channel, which is important to Accell Group. This increase was partly driven by the introduction of the German Ghost brand. Sales at traditional bicycle dealers (IBD) lagged expectations and declined by some 10% in US dollars. Thanks to the strength of the US dollar, North American turnover increased when translated into euros. Our French brand, Lapierre, halted sales in the USA because of the too low returns. Since the market for electric bicycles in North America remains limited, the increase in turnover in that segment was also limited. The average price did increase. In 2016, Accell Group will take additional measures to strengthen the position of our own Raleigh brand in the market.
In the Other European countries, the main markets are France, the United Kingdom, Belgium, Scandinavia, Austria and Switzerland. Turnover in the region increased by 22% last year. In France, bike sales were up, both at Lapierre and in exports from the German and Dutch companies. In Belgium, sales of Dutch and German bikes recorded particularly strong growth. In the United Kingdom, turnover of the Raleigh brand increased by 20%. Turnover in Switzerland was higher, primarily due to a rise in sales of the electric bikes produced by our German and French brands, both via traditional dealers and multi-sports channels. Haibike, Ghost and Lapierre also have a solid position in Austria and France, largely on the back of sports bikes, and turnover also increased in those countries. Our own organisations in Finland, Sweden and Denmark are active across the whole of Scandinavia, with sales of the Finnish brands Tunturi and Nishiki (Finland only), as well as our Dutch, German and French brands. Bicycle turnover in Scandinavia increased last year. In southern Europe, sales to Spain and Italy were up, mainly in sports bikes of the Lapierre, Ghost and Haibike brands. In Italy, we are active via
Atala (non-consolidated), as well as our French and German brands.
In Other countries, Turkey and the Far East in particular are important markets. The turnover in Turkey increased, Accell Bisiklet is the most important bike supplier. In other Asian countries, turnover is relatively modest and was comparable to 2014 in the year under review. Bicycle turnover in Japan increased, while turnover in Australia declined. Licensing income from the Raleigh and Diamondback brands worldwide was higher last year.
Turnover in the parts & accessories segment came in almost 20% higher at € 267.4 million last year (2014: € 224.3 million), largely on the back of the acquisitions of Comet and CSN. Organic turnover growth was 7%. The turnover of Accell Group's own brands (mainly XLC) was up by 10%. XLC is growing rapidly and the company's products are sold in more than 45 countries across the world via the existing dealer network of bicycle and sports stores. Accell Group has strong positions, especially in the Netherlands, Belgium, Germany, France, Spain, Italy, the United Kingdom, Turkey and Scandinavia. Sales were up in virtually all European countries where Accell Group is active. The segment result came in 46% higher at € 16.8 million last year (2014: € 11.5 million).
In the Netherlands and Germany, turnover increased by 7% and 11% respectively, with all of this growth organic. Germany, which accounts for around 22% of turnover, is Accell Group's largest market for accessories, followed by the Netherlands with around 17%. In the Netherlands, turnover was up on the back of an increase in turnover in e-bike parts, such as batteries. In North America, turnover in parts & accessories declined in US dollars. Various parts suppliers have decided distribute their products to dealers directly and that has resulted in lower turnover and a strong reduction of the number of national brands on offer. A warehouse for parts has been closed down and the parts are now distributed from two warehouses to improve cost efficiency and working capital.
In Other European countries, turnover was 34%`higher last year. This includes the consolidated full- year turnover from the acquisitions Comet and CSN. Turnover in France increased and Accell is active in that country via both Comet and Wiener Bike Parts. Parts turnover in the United Kingdom declined due to competition from online sales channels. In Spain, Comet managed to bolster its position in the market.
Sales of parts in other countries, mostly in Asia, are limited.
It recently emerged that an employee of one of Accell Group's own Asian organisations (Accell Asia Taiwan) stole money from the company's bank account. Accell Group subsequently initiated an investigation into the nature, cause and impact of this theft. Accell Group hired an international forensic accountancy firm for this investigation and has immediately requested legal support in Taiwan and made contact with the local authorities to report the theft. After careful analysis, the investigation resulted in the conclusion that this was an isolated incident at the AAT branch in Taiwan. The damage to Accell Group is estimated at a maximum of € 4 million.
Furthermore, on the basis of the investigation, it can be concluded that the theft was made possible by a combination of circumstances, which enabled the employee in question to abuse systems,
processes and trust to circumvent the existing internal control measures around this company and to make us of the available liquidity. The conclusions of the investigation have been incorporated in a plan of measures to further tighten the internal control systems.
Group turnover came in 12% higher at € 986.4 million in 2015. Turnover increased by 9% organically. Currency exchange effects had a positive impact of € 34.4 million in 2015, largely due to the exchange rates for the US dollar, Pound sterling and the Taiwanese dollar.
Added value (net turnover less material costs and inbound transport costs) as a percentage of turnover came in at 31.7% (2014: 30.4%). Absolute added value rose by more than 17% to € 313.0 million (2014:
€ 268.3 million). The added value in 2015 was influenced by improved underlying margins, less discounts and sales mix. The sales mix was more favourable in 2015, due to an increase in the sales of electric bikes. On top of this, the acquisition of Comet and CSN made a positive contribution to the higher added value.
Staff costs fell to 12.1% of turnover (2014: 12.2%). The other costs (excluding incidental costs) increased to 12.3% of the turnover (2014: 12.1%). Total operating costs (excluding exceptional costs) came in at € 250.5 million in 2015, or 25.4% of turnover (2014: 25.3%).
The operating profit (excluding exceptional income and expenses) rose to € 62.5 million in 2015 (2014:
€ 44.8 million). Currency exchange effects had a minimal impact on the operating profit. The result from minority interests came in at € 0.9 million in 2015 (2014: € 0.4 million), due to a provision on a loan to a minority interest.
The balance of financial income and expenses amounted to € 9.1 million negative in 2015 (2014: € 8.8 million negative). The higher financial expenses compared with 2014 were due to higher average positions on bank accounts.
The effective tax rate rose to 33.5% in the year under review (2014: 25.9%) and the incident in Taiwan had a negative impact on this rate. Excluding the incident in Taiwan, the effective tax rate was 32.0% and was influenced by the higher results in Germany and non-capitalisation of compensable losses in North America.
Net profit for the financial year 2015 came in at € 32.3 million (2014: € 26.5 million). Net profit excluding the impact of the incident in Taiwan came in at € 36.3 million, 37% higher than in 2014.
Accell Group's balance sheet total stood at € 729.7 million at year-end 2015 (2014: € 631.8 million). Total working capital amounted to € 337.7 million in 2015 (2014: € 269.2 million); working capital as a percentage of turnover came in at 34.2% (2014: 30.5%).
The value of inventories increased due to the higher cost prices in general and due to the increase in the number of more expensive bikes, which are subject to a longer than average turnover time. The value of the parts in stock was up in 2015, due to higher costs prices and accelerated production planning to ensure improved availability for the market. The total value of inventories stood at € 338.7
Accell Groep NV issued this content on 26 February 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 26 February 2016 09:28:25 UTC
Original Document: http://www.accell-group.com/files/3/1/4/1/160226%20Accell%20Group%20Press%20release%20annual%20results%20%202015.pdf
