DGAP-News: MIFA achieves new revenue record in H1 2013

DGAP-News: MIFA Mitteldeutsche Fahrradwerke AG / Key word(s): Half Year Results/Quarter Results MIFA achieves new revenue record in H1 2013 15.08.2013 / 07:59 --------------------------------------------------------------------- MIFA achieves new revenue record in H1 2013 - Revenue up 3.3 % to EUR 82.6 million (H1 previous year: EUR 80.0 million), highest half-yearly revenue since IPO in 2004 - E-bikes sales already comprise 30.6 % of total revenue (H1 previous year: 26.5 %) - EBIT of EUR 5.5 million ahead of previous year (H1 previous year: EUR 5.4 million), 6.7 % EBIT margin at previous year's level Sangerhausen, 15 August 2013 - MIFA Mitteldeutsche Fahrradwerke AG (WKN A0B95Y, ISIN DE000A0B95Y8), Germany's largest bicycle manufacturer in terms of sales, grew its consolidated revenue to EUR 82.6 million in the first half of 2013, up 3.3 % year-on-year (H1 previous year: EUR 80.0 million) - despite the unusually cold weather during the April to June months. When looking at the second quarter in isolation, revenue grew at 12.0 % year-on-year, allowing MIFA to more than offset the weather-related revenue decline during the first three months of 2013. Some major customers had postponed their planned purchase of agreed quotas beyond the 31 March reporting date due to the long winter. Group CEO Peter Wicht regards this delayed revenue realisation as not the only reason for the good trend: 'Our business with our proprietary Steppenwolf and GRACE brands allowed us to significantly boost our average sales prices, and consequently our revenue.' Although the number of bicycles sold in the first half the year reduced by 10.6 % to 395,000 units, as planned (H1 previous year: 442,000 units), the average sales price appreciated by 15.5 %, from EUR 181 in the prior-year period to EUR 209. The sale of e-bikes remains the decisive driver of sales. MIFA generated EUR 25.3 million of revenue with e-bikes in the first half the year, 19.3 % more than in the previous year's period (EUR 21.2 million); their share of consolidated revenue was up by more than four percentage points to 30.6 % (H1 previous year: 26.5 %). As the share of high-priced e-bikes grew further, the average sales price reported a marked increase of 26.2 % to EUR 723 (H1 previous year: EUR 573), by far offsetting the slight decline in the number of e-bikes sold, which dipped to 35,000 units (H1 previous year: 37,000 units). In light of the integration of the Steppenwolf specialist dealers brand, too, the average sales price of conventional bicycles was up by 9.7 % to EUR 158 (H1 previous year: EUR 144). Overall, MIFA sold 360,000 bicycles without electronic motors by the end of June (H1 previous year: 405,000 units). Revenue generated with conventional bicycles was down by 2.1 % to EUR 57.3 million (H1 previous year: EUR 58.2 million). MIFA continues to derive the lion's share of its revenue within Germany, Europe's largest bicycle market, where it achieved 76.9 % of its total revenue (H1 previous year: 78.1 %). After including inventory changes of EUR 5.0 million (H1 previous year: EUR 2.5 million), total operating revenue was up by 6.2 % to EUR 87.6 million (H1 previous year: EUR 82.5 million). A comparison of the company's gross profit to this total operating revenue shows that the gross profit margin was unchanged year-on-year at 31.2 %. Earnings before interest, tax, depreciation and amortisation (EBITDA) increased from EUR 7.0 million in the prior-year period to EUR 7.3 million. After adjusting the previous year's figures to reflect extraordinary items arising from the migration of the Grace operations to the Sangerhausen site, the Group generated EUR 7.9 million of adjusted EBITDA in the first half of 2012. The EBITDA margin on revenue amounted to 8.8 % (H1 previous year: 8.7 %; adjusted figure: 9.8 %) - despite the 13.7 % rise in personnel expenses to EUR 9.8 million (H1 previous year: EUR 8.7 million), which pushed the personnel expenses ratio (expressed in relation to total operating revenue) up from 10.8 % to 11.2 %. In the first half of the previous year, the additional personnel expenses due to the acquisitions realised in the 2012 financial year were reported only pro rata temporis; the rise in personnel expenses is also due to the structural increase reflecting the further rise in staff qualification levels. The number of employees as of the reporting date decreased to 693 (H1 previous year: 725). Depreciation and amortisation was up by 12.9 % year-on-year to EUR 1.8 million (H1 previous year: EUR 1.6 million). This increase arises mainly from the high level of investments in the previous year, when MIFA acquired principally production plants, customer relationships and industrial property rights from Grace and Steppenwolf as part of the acquisitions. As a consequence, operating earnings (EBIT) of EUR 5.5 million were somewhat higher than the previous year's result (H1 previous year: EUR 5.4 million; adjusted figure: EUR 6.4 million), and the 6.7 % EBIT margin was at the previous year's level (H1 previous year: 6.7 %; adjusted figure: 7.8 %). At EUR 0.7 million, compared with EUR 2.0 million in the first half of 2012, the level of capital investments returned to the Group's long-term average. After deducting the net financial result of EUR -0.6 million (H1 previous year EUR -1.3 million) and corporation taxes on income of EUR 1.4 million (H1 previous year: EUR 1.1 million), the Group generated EUR 3.5 million of net income in the first half the year (H1 previous year: EUR 2.9 million; adjusted figure: EUR 4.0 million). Earnings per share stood at EUR 0.36 (H1 previous year: EUR 0.37), whereby the weighted average number of ordinary shares outstanding as of the balance sheet date was up by around 1.8 million shares year-on-year due to the capital measures realised in the second half of 2012. CEO Peter Wicht feels that these half-year results confirm the course the Group has charted: 'We are participating in decisive developments on the bicycle market. Along with our established business with wholesale and retail buyers, as well as with industry, our brands are also allowing us to benefit from the fact that consumers are becoming somewhat less price focused, and that e-bikes are becoming increasingly popular.' Not least for this reason, Wicht again confirmed MIFA's aim for the full year to achieve revenue between EUR 120 million and EUR 130 million, and an EBIT margin between 4 and 5 %. About the company: MIFA Mitteldeutsche Fahrradwerke AG, which is based at Sangerhausen in Germany's Saxony-Anhalt region, is Germany's largest manufacturer of bicycles in terms of sales. The company produces an extensive range of bicycle models ranging from entry-price through to premium. The components utilised in bicycle production are purchased from renowned suppliers and assembled at the company's single production location in Sangerhausen. Business here focuses on project-related manufacturing to order for large retail chains and OEM (Original Equipment Manufacturer) customers. E-bikes have also been produced since the 2011 financial year. MIFA produces the e-bike for automotive manufacturer smart, Deutsche Post's bicycle fleet, and supplies municipal lending systems with multi-user vehicles. MIFA acquired Berlin-based e-bike manufacturer Grace and Bavaria-based cult bicycle forging company Steppenwolf in 2012, thereby intensifying its sales activities with specialist dealers. MIFA sells its bicycles primarily in its domestic market in Germany. Further sales markets are located mainly in Western Europe. Both the operating business and administration and logistics are managed from the single production site in Sangerhausen. MIFA sold 546,000 bicycles in the 2012 financial year (previous year: 644,000), generating EUR 111.3 million of revenue, representing a 10.7 % increase compared with 2011 (EUR 100.5 million). E-bikes comprised 30.0 % of total revenue (previous year: 12.5 %). After adjusting for acquisition effects, the company generated adjusted operating earnings (EBIT) of EUR 2.9 million (previous year: EUR 4.6 million), and adjusted net income of EUR 1.1 million (previous year: EUR 2.0 million). MIFA has been listed on the stock market since May 2004. Its shares are traded in the Prime Standard of the Regulated Market of the Frankfurt Stock Exchange. Contact: Mark Appoh cometis AG Unter den Eichen 7 65195 Wiesbaden Telephone: 0611-205855-21 Fax: 0611-205855-66 Email: appoh@cometis.de End of Corporate News --------------------------------------------------------------------- 15.08.2013 Dissemination of a Corporate News, transmitted by DGAP - a company of EQS Group AG. The issuer is solely responsible for the content of this announcement. DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- Language: English Company: MIFA Mitteldeutsche Fahrradwerke AG Kyselhäuser Stra�e 23 06526 Sangerhausen Germany Phone: 03464-5370 Fax: 03464-537251 E-mail: b.mirau@mifa.de Internet: www.mifa.de ISIN: DE000A0B95Y8 WKN: A0B95Y Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Hamburg, München (m:access), Stuttgart End of News DGAP News-Service --------------------------------------------------------------------- 226010 15.08.2013