4 Performance per segment
Following the sale of the fitness activities in mid-2014, Accell Group adjusted its primary segmentation. As from the 2014 financial statements, the group reports in the segments bicycles and parts & accessories. The segmentation is in line with Accell Group’s strategic priorities and provides insight into the company’s underlying performance.
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 12%. 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.
Other European countries
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).
Netherlands, Germany and North America
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.
Other European countries and other countries
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.