Accell Group posted a 10 per cent drop in revenue in its finalised 2023 accounts, Bike Europe reported. The business, which owns Lapierre, Raleigh and numerous other bike brands, is "well on track" to recovery, according to its CEO Tjeerd Jegen.
"2024 was a challenging year for both the bike industry and Accell," he said. "However, we've normalised stock levels, made significant progress with our recapitalisation and are proud to see one of the key Accell brands, Lapierre, return to the UCI World Tour. As we look ahead, we are well positioned to benefit from the favourable macro trends and continue building on this momentum in the new year.
"All brands now benefit from joint stock management, and the stock levels of finished bikes, which peaked at the end of 2023, have now been brought back to normalised pre-Covid levels. The majority of the stock now consists of models produced in the past year. The inventory of parts and accessories had been brought back to normalised levels earlier in the year. We see sales to customers in our key markets increasing again."
In June, Accell's credit rating was downgraded for fourth time in a year, the blow coming at the same time that the group's cargo bike company Babboe was criticised for a "shambles" recall of faulty frames.
The group also made job cuts to streamline its European production, with two facilities merging and some production relocated to Hungary and Turkey. In October, the major Dutch cycling company did hint at its recovery, Accell reporting that parts and accessories inventory is already back to normal and bike inventory levels are expected to reach the same point by the end of 2024.