EANS-News: Derby Cycle boosts operating profit by 45% in the first nine months
of 2010/2011
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9-month report
Subtitle: Revenue of EUR 198.8 million (+38% year-on-year) / Operating profit
(EBIT) up 45% to EUR 19.1 million / Electric bike sales almost double
year-on-year to 73,000 units / Derby Cycle drives ahead with
internationalisation: direct sales in the UK, Australia, and now also Denmark
Cloppenburg (euro adhoc) - Monday, August 29, 2011 - Derby Cycle AG (ISIN
DE000A1H6HN1, WKN A1H6HN), Germany's largest bicycle manufacturer in terms of
sales, has today published its financial report for the first nine months of the
2010/2011 financial year.
The company reports marked revenue growth of 38% to EUR 198.8 million in the
reporting period, compared with EUR 144.1 million in the first nine months of
fiscal year 2009/10. Even stronger gains were reported in terms of operating
profit (EBIT), which was up by around 45% over the same period to reach EUR 19.1
million (previous-year period: EUR 13.1 million). This generated a 9.6% EBIT
margin in the first nine months of 2010/2011, compared with 9.1% in the
corresponding prior-year period. Consolidated net income in the reporting period
also rose at a significantly rapid rate of 31.4%, increasing from EUR 8.8
million to EUR 11.6 million. This corresponds to EUR 1.55 of earnings per share
(previous year: EUR 1.18).
Compared with total sales in the electric bikes segment of around 39,000 cycles
in the first nine months of the 2009/2010 financial year, the company had
already sold around 73,000 units within the reporting period (+85.8%). In
overall terms, approximately 413,000 bicycles from the Kalkhoff, Raleigh, Rixe,
Focus and Univega brands were sold at Group level. This represents 16.6% growth
compared with the previous year's figure of 354,000 units. The foreign share of
sales increased to 33.2% (previous year: 30.8%) - evidence of the success of the
company's advancing internationalisation. Given this, the company is confirming
its forecast of achieving revenue of between EUR 220 million and EUR 240 million
in the full 2010/11 year, and an EBIT margin of between 8% and 9%.
Mathias Seidler, Derby Cycle AG's CEO, expressed his satisfaction with the
company's growth: "The April to June 2011 months represented a further record
quarter for our company. The weather supported our sales correspondingly. We are
proving extremely profitable in pursuing our growth path in this context
- with a 9.6% EBIT margin in the first nine months of 2010/11, we have again
exceeded the previous year's record figure. Our internationalisation, our close
relationships to specialist wholesalers and retailers, and our strong
positioning in the high-growth electric bikes segment continue to form the basis
of our growth path."
Uwe Bögershausen, the company's CFO, went on to add: "We have already been
extremely successful in investing some of the IPO proceeds. Derby Cycle has
entered into a 50/50 joint venture with electro-motor developer Daum Forschung
und Entwicklung GmbH, which is responsible for the further development of
electronic drive systems. Also, we launched direct sales in Australia in June of
this year as part of its internationalisation. This was followed by the United
Kingdom in mid-July 2011, and direct sales were also recently initiated in
Denmark in August of this year. We continue to retain most of the issue proceeds
for acquisitions, for an international cycle brand, for example."
The complete financial report for the first nine months of 2010/11 can be
downloaded from today from the company's website at www.derby-cycle.com, within
the "Investor Relations" area.
Company profile:
Derby Cycle is Germany's largest bicycle manufacturer in terms of revenues, and
one of the leading manufacturers in Europe. In particular, global demand growth
for high-quality electric and sports bicycles, as well as the company's
advancing internationalisation in all European volume markets, are reflected in
the company's dynamic growth. Derby Cycle's product range comprises electric
bicycles, sports bicycles for leisure and competition purposes, as well as
comfort bikes for everyday and travel use. These bicycles are sold through the
established Kalkhoff, Focus, Raleigh, Univega and Rixe brands. All models are
developed and assembled at the company's base in Cloppenburg, Germany. These
high-quality products are distributed through specialist retailers who provide
their customers with professional advice and extensive service.
With around 550 employees, Derby Cycle achieved revenue of EUR 173 million in
the 2009/2010 financial year, 72.6 percent of which was generated in Germany,
and 27.4 percent abroad. Earnings before interest and tax (EBIT) amounted to
approximately EUR 12 million. Derby Cycle sold a total of around 430,000
bicycles, of which 44,000 comprised e-bikes. As a consequence, Derby Cycle has
asserted a position of clear market leadership in 2010 with a 20 percent market
share. The company forecasts revenues of EUR 220 million to 240 million, and an
EBIT margin of 8 to 9 percent (2009/10: 7.0 percent) for the 2010/11 financial
year that ends on September 30, 2011.
Further information is available at: www.derby-cycle.com
Further inquiry note:
cometis AG
Unter den Eichen 7
65195 Wiesbaden
www.cometis.de
Henryk Deter / Tobias Eberle
Telefon: +49 (0)611-20 58 55-25
E-Mail: eberle@cometis.de
end of announcement euro adhoc
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company: Derby Cycle AG
Siemensstr. 1-3
D-49661 Cloppenburg
phone: +49-4471-966-238
FAX: +49-4471-966-44820
mail: u.boegershausen@derby-cycle.de
WWW: http://www.derby-cycle.de
sector: Consumer Goods
ISIN: DE000A1H6HN1
indexes:
stockmarkets: regulated dealing/prime standard: Frankfurt, free trade: Berlin,
Hamburg, Stuttgart, Düsseldorf, München
language: English