Sangerhausen, 18 September 2014 - MIFA Mitteldeutsche Fahrradwerke AG (WKN A0B95Y, ISIN DE000A0B95Y8), Germany's largest manufacturer of bicycles in terms of sales, generated EUR 34.2 million of sales revenue in the first quarter of 2014. As a consequence, sales revenue was 5.0 % below the restated sales revenue reported for the first three months of the 2013 financial year (EUR 36.0 million). Due to some erroneous reporting of stocks in past financial years, valuation corrections were applied to corresponding balance sheet and income statement items in the current set of accounts, which are already included in the amounts reported for the previous-year period. MIFA again generated most of its sale revenue (EUR 29.8 million; Q1 previous year: EUR 28.3 million) in its main sales market of Germany, equivalent to 87.1 % of total consolidated revenue (Q1 previous year: 78.7 %). Over the same period, total operating revenue (revenue plus changes in inventory plus other own work capitalised) fell by 5.5 % to EUR 34.1 million (Q1 previous year: EUR 36.0 million). 

The cost of materials fell by 18.0 % to EUR 23.1 million (Q1 previous year: EUR 28.2 million) in the period under review. Personnel expenses, too, registered a decrease by 17.0 % to EUR 4.3 million (Q1 previous year: EUR 5.2 million). Accordingly, the cost of materials ratio amounted to 67.6 % of the first quarter of 2014 (Q1 previous year: 78.3 %), and the personnel expense ratio stood at 12.5 % (Q1 previous year: 14.3 %). These lower expense ratios fed through to a positive result before interest, tax, depreciation and amortisation (EBITDA) in the period under review. EBITDA amounted to EUR 1.2 million, compared with a loss of EUR -2.0 million in the prior-year period. This is equivalent to a 3.6 % EBITDA margin. The level of depreciation and amortisation (EUR 0.7 million) returned to a normal operating level during the first three months (Q1 previous year: EUR 0.9 million). The operating result (EBIT) rose as a consequence to a slightly positive figure of EUR 0.5 million (Q1 previous year: EUR -2.9 million), with the corresponding EBIT margin standing at 1.6 %. After deducting the negative net financial result of EUR 0.7 million (Q1 previous year: EUR 0.4 million) - where this increase is primarily attributable to deferred interest for the corporate bond that was issued in the 2013 financial year - and income taxes of EUR 0.4 million (Q1 previous year: EUR 0.1 million), the Group generated a net loss of EUR -0.6 million in the first quarter of 2014 (Q1 previous year EUR -3.5 million). 

On the basis of the results of the first quarter and the first findings of the business development within the second quarter of the current 2014 financial year, MIFA's CEO, Hans-Peter Barth, confirms his estimate for the further course of the year: "In the light of the situation that I found when I assumed office on 20 March of this year, the 2014 business year is clearly one of restructuring. After the slightly positive first quarter we expect a negative operating result for the second quarter. Among other things, we sold parts of existing stocks below market value. Hence, we still anticipate a decline in revenue and a negative result for the current year. However, in view of the consolidation measures that we have largely already launched, we are confident that we will return to the profitability zone in the coming 2015 financial year." 

MIFA's report on the first quarter of 2014 can be downloaded from today from the company's website at www.mifa.de within the Investor Relations area. 

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