It won't surprise anyone who has even loosely followed the movements of the cycling industry in 2020 that it has been a bumper year. Now, in spring of 2021, most publicly traded brands have released their financial statements for the year and it makes for more happy reading for the industry. Revenues are up across the board and, despite on-going issues surrounding shipping and currencies, a lot of brands are forecasting for the boom to continue for the next few years at least.
Shimano Sees 3% Rise in Bicycle Component Sales After Rocky Start to the Year
Despite the setbacks of global lockdowns and factory closures, Shimano ended the year with a 2.7% net sales increase in its bicycle department, up to 297,777 million yen, and an increased operating income of 18.4% to 68,494 million yen year-on-year. The first quarter saw Shimano sales slump 15%
but it was able to recover following the incredible demand throughout the rest of the year. Shimano said the demand for bicycle parts was predominantly in the USA and Europe and it didn't see a significant increase in sales in its native Japan. The introduction of the new Deore groupset
was one of the big drivers of the brand's success as the new groupset proved a hit with media and customers alike.
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Fox Expects $1 Billion in Sales in 2021 and is Already Booked Out into 2022
Fox's bike division grew 22% over the year to total $367 million in 2020, this includes an incredible final quarter that was up 41% over the previous year. Total sales for the Specialty Sports (bikes) and Powered Vehicles division came to $891 million, which, according to Bicycle Retailer and Industry News
, has allowed Fox to forecast its sales will top $1 billion for the first time in 2022 with estimates in the range of $1,035 million to $1,085 million.
Fox's CEO, Mike Dennison, reportedly told analysts on a call that orders are booked out into 2022 and that the brand had been able to increase its capacity in its Taiwan factories. He said, "We really, really like what we are seeing relative to the premium category. Obviously we fit in really well in that space and that helps."
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Accell Group Net Sales Up 17%
Accell Group, the parent company of Ghost, Haibike and Lapierre, has announced a 10.6% increase in its bicycle sales and a 36.2% increase in its parts and accessories sales, which has led to a total sales amount of €1,296,000, up 16.7% from 2019. Accell also saw a huge increase in net profit, from €2.8 million in 2019 up to €64.8 million in 2020.
Ton Anbeek, Accell CEO, predicts that the demand for bikes will remain strong even after the pandemic has passed. He said, "Demand for bicycles is looking very healthy for the coming five to ten years. This is due to the electrification of bicycles, European governments’ investments in cycling infrastructure - given an additional boost by the European Green Deal - and thirdly, an increase in government subsidies and tax incentives for the purchase and use of (electric) bikes. In a strange twist of fate, in 2020 a health crisis had the unintended side effect of boosting this long-term trend driving the growing popularity of bicycles and cycling."
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Dorel Sports Hits $1 Billion in Sales with 15% Growth
Dorel Sports, the parent company of GT, Cannondale, Fabric and more, recorded revenue of $1.04 billion for the year, up $135.8 million, or 14.9%, from $909 million last year. Despite a rocky winter that saw it on the verge of going private before shareholders voted against it at the 11th hour, Dorel also finished the year strong with fourth quarter revenue increasing to $265.3 million, an increase of $32.2 million, or 13.8%, from last year.
Dorel Sports says its profits were affected by, "product mix, limited container and component availability, higher container costs and the inability to fill all orders" but despite this its operating profit for the year nearly doubled to $52.3 million.
Martin Schwartz, Dorel President & CEO, said: "Strong demand for Dorel Sports product offering continued throughout the quarter with supply chain constraints being a significant limitation on our performance... Results for the fourth quarter include US$7.5 million of costs incurred in connection with the Company’s privatization process that was terminated by the mutual agreement of Dorel and the buyer group in February. Its rejection by a majority of our independent shareholders sent a clear message of their belief in the long-term potential for the Company as a public entity. As a management team, we are committed to rewarding our shareholders for their confidence in Dorel."
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MIPS Strong Final Quarter Driven by Bicycle Helmet Sales.
Net sales for MIPS increased by 36% to SEK 365m, including a growth of 60% in Q4 alone. In a year MIPS describes as "strong but strange", it has ended the year with its rotational protection system installed in 7.2 million helmets, across 729 helmet models (up from 538 last year). Referring to bicycle helmets specifically, Max Strandwitz, President and CEO, said, "Normally our sales in the fourth quarter are mainly solutions for bicycle helmets. This was even more apparent this year, as the strong development in the Sport category was driven by high demand for bicycle helmets... The inventory levels in retail are low. This means that the current production is aimed at restoring stock levels and building up the stock for the coming season. As demand has exceeded our customers' manufacturing capacity for helmets, we expect to see continued high manufacturing volume coming quarters. Despite a challenging environment, we have continued to broaden our customer base with 11% during the year and have now 107 customers in the Sport category in total."
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Schwalbe Sales up 7%
2020 was also a good year for tire giant Schwalbe who recorded a 7% increase in sales up to €225 million. Apparently, Schwalbe’s e-bike tire the Marathon E-Plus, as well as trekking and MTB models were the biggest drivers of this growth. This year, Schwalbe also invested €20 million in a new company headquarters in Reichshof and made its most popular model, the Marathon E-Plus, its first Fair Trade tyre.
Frank Bohle, executive partner of Schwalbe, said: "The year 2020 brought us an emotional roller-coaster in all areas of life. Luckily, temporary closures of bicycle retail stores did not result in long-term sales collapses in our industry. On the contrary, reopening after the lockdown resulted in a jump in demand for bikes and bike parts never seen before. The bicycling boom had been going on for years, but the Corona pandemic acted as a powerful catalyst, as cycling allows people to commute without worrying so much about the virus. Almost all bike segments experienced benefits – most of all e-bikes, but also gravel bikes, mountain bikes and formerly niche products such as cargo bikes."