Securing financial stability in a tough market

Securing financial stability in a tough market

The fact that a major player like Accell Group has been struggling under a burden of heavy debts gives a clear indication of the difficulties in the market. The manufacturer saw its turnover decline 10% from €1.43 billion in 2022 to €1.3 billion in 2023 as sales declined across major European markets and inventory levels remained high.

At the same time, the industry has witnessed a flurry of insolvencies including Austrian bicycle manufacturer WSF, German LEV maker Onomotion and Austrian bike brand Simplon. On the flip side, other key players are continuing to invest, or in some cases disinvest, to secure their financial health heading into the next year. However, for some, “survive to 25” could be a very real challenge.

Highlights in this latest online magazine (Issue 33 | July 2024) include:

  • ‘Another boom period for the industry is coming’
  • Industry players restructuring for better financial foothold
  • Why our drive system failed in thriving market

Taiwan’s second largest bicycle manufacturer Merida’s Headquarters in based in Dacun Township in Changhua County. – Photo Merida

Merida revenue recovers but profit lags behind

CHANGHUA, Taiwan - In the first three sales quarters of the current 2024 financial year Taiwan's second-largest bicycle manufacturer Merida Industry Co. Ltd. generated total revenue of TWD 23.8 billion (€695 million). Compared to the first nine months of the previous year, this is a good increase of 5.8% in a persistently difficult and challenging environment.

myStromer is the second well known e-bike brand to pull out of the US market recently. – Photo myStromer

Leading e-bike brands discontinue North American business

OBERWANGEN, Switzerland - Yamaha was the first e-bike brand this month which announced it was pulling out of the US market due to oversupply and slow demand. It turns out that the Japanese are not the only one. myStromer AG also announced it will discontinue its business in the US and Canada with immediate effect.

hGears manufactures high precision parts and components and has counted Bosch, Oli e-bike systems, ProscheEP and Valeo as clients in the E-bike segment. – Photo Bike Europe

hGears' e-bike business segment suffers from sluggish destocking

SCHAMBERG, Germany - High-precision transmission parts and components manufacturer hGears AG continues to suffer not only from the automotive crisis, but also from the e-bike business segment's sluggish destocking. In the first nine months of the current 2024 financial year, it had to digest its biggest sales drop.

Bike24’s decision to focus on ‘enthusiasts’ turns out to be the best for their financial reports. – Photo Bike 24

Bike24 retains upward sales trend in e-commerce during Q3

DRESDEN, Germany - Online retailer Bike24 reports a year-on-year revenue increase of 2.9% to €62.89 million from July to September 2024. In this quarter the category fully assembled bicycles saw a 6% revenue growth to an all-time high of €13.4 million. According to Bike24, "this is the result of our choice for a large brand portfolio and attractive price points."