Press release BoxID: 553703 (MIFA-Bike Gesellschaft mbH)
  • MIFA-Bike Gesellschaft mbH
  • Kyselhäuser Straße 23
  • 06526 Sangerhausen
  • Contact person
  • Mark Appoh
  • +49 (611) 205855-21

MIFA sells 70% more e-bikes

(PresseBox) (Sangerhausen, ) .
- Revenue up 4.5% to EUR 97.6 million in the first nine months of 2012
- Integration of GRACE and Steppenwolf progressing as planned
- Annual revenue expected to double in the coming years

MIFA Mitteldeutsche Fahrradwerke AG (WKN A0B95Y, ISIN DE000A0B95Y8), Germany's largest bicycle manufacturer in terms of sales, increased its revenue to EUR 97.6 million in the first nine months of 2012, 4.5% up on the prior-year period.

The increased revenue was achieved with a lower number of sold bicycles; this was around 500,000 units, which is 17.7% down on the previous year figure (30 September 2011: 608,000 units). This development came on the back of MIFA substantially expanding sales of high value e-bikes as planned: At EUR 25.9 million, their share of total revenue stood at 26.5%, almost twice as high as in the prior-year period. The absolute number of e-bikes sold rose by almost 70% to around 42,000 (30 September 2011: 25,000 units) and therefore already clearly exceeded the sales for the entire 2011 year (27,000 units). With e-bikes, the company is able to achieve sales prices almost four times higher on average than those of conventional bicycles. Across the entire product range, the average price per bicycle was around 27% higher than in the previous year. The gross margin rose by 1.0 percent points to 32.6% (30 September 2011: 31.6%).

As expected, the earnings figures were impacted by extraordinary effects. On the one hand, these effects relate to the acquisitions made during the course of the year: In March 2012, MIFA acquired Berlin-based e-bike manufacturer GRACE and took over Munich-based bicycle producer Steppenwolf in August 2012. The production of both brands was completely transferred to Sangerhausen. In addition, MIFA developed a technologically outstanding production facility for its OEM customers, which is linked with a quality management system. Extraordinary expenses for these outlays totalled EUR 2.7 million. On the other hand, the up-listing into the Prime Standard from July 2012 also led to one-off costs of EUR 0.5 million.

Adjusted for these extraordinary factors, EBITDA came in at EUR 7.4 million and was therefore on a par with the previous year. This represents an adjusted EBITDA margin of 7.6% (30 September 2011: 8.0%). In addition, MIFA invested heavily during the reporting period, particularly in customer relations and the property rights of Steppenwolf as well as in other efficiency improvements at the fully automated wheel lacing facility. At EUR 2.4 million, the investments were almost four times higher than in the previous year (30 September 2011: EUR 0.6 million). Therefore, due to higher depreciation and amortisation, the adjusted EBIT figure of EUR 4.9 million is down on the previous year, with a margin of 5.0% (30 September 2011: 5.9%). The unadjusted EBIT figure came in at EUR 1.3 million. At EUR 1.8 million, the negative net financial result was somewhat higher than in the first three quarters of 2011. Net profit for the period was posted at EUR 2.5 million before extraordinary effects (30 September 2011: EUR 2.9 million).

Peter Wicht, Chief Executive Officer of MIFA, comments on the business development in the first nine months of 2012: "The substantial increase in revenue underlines that our strategy is working. We are systematically expanding sales of high quality e-bikes and bicycles for specialist retailers, but also maintaining our 'bread and butter business' with retailing as a strong basis. As part of this, revenue takes precedence over unit numbers. During the course of the year so far, we have set a number of milestones, which may result in extraordinary costs today, but will translate into a positive impact on revenue and income in the medium term: We have made two successful acquisitions in the premium segment, which have given us powerful brands and a broad sales network in specialist retailers as well as specialist know-how in marketing and development." Orders from the automotive industry are also an important element in the MIFA strategy according to Michael Hecken, Head of Marketing and Strategy: "The facility which we developed this summer for the production of our premium e-bikes sets new standards in the bicycle industry. And it also opens up completely new opportunities - more and more industry customers are now approaching us with OEM orders."

According to Peter Wicht, 2012 represents a clear watershed year for MIFA: "Over the first nine months of the year, we have completely realigned our business and in doing so have paved the way for sustainable and profitable growth in the years ahead. Based on this, we are cautiously making a medium term forecast for the future - for the first time in MIFA's recent history: We are aiming to double our annual revenue in the coming four to six years to EUR 200 million compared to 2011. On the back of this, we are striving to increase the EBIT margin to between 7% and 9%."

MIFA's nine-month report will be published on 15 November 2012 on the MIFA website ( in the "Investor Relations" section.

MIFA-Bike Gesellschaft mbH

MIFA Mitteldeutsche Fahrradwerke AG, which is based in Sangerhausen (Saxony-Anhalt / Germany), is Germany's largest bicycle manufacturer in terms of sales. The company produces bicycles from supplied components, whereby the focus lies on project-related order production for large retail chains. E-bikes have also been produced since 2011. MIFA also acquired the majority of Berlin-based e-bike manufacturer GRACE GmbH & Co. SG in March 2012, which mainly produces premiumsegment e-bikes. Among other customers, GRACE produces the e-bike for automotive manufacturer Daimler (for the smart brand). MIFA also acquired all of the significant assets of the Munich-based bicycle producer Steppenwolf in August 2012. Steppenwolf offers its bikes only through qualified independent bicycle dealers. Outside Germany, MIFA sells its bicycles mainly in Western Europe; in this context, both the operating business and administration and logistics are managed at the company's sole production location in Sangerhausen.

MIFA sold around 644,000 bicycles in 2011 (previous year: around 593,000). Thereby, the company generated EUR 100.5 million of sales revenue, representing a 31.4% increase compared to the previous year (EUR 76.5 million). With this revenue, the company achieved an operating profit (EBIT) of EUR 4.6 million (previous year: EUR 2.0 million), and a net income of EUR 2.0 million (previous year: EUR 0.3 million). Its shares are traded in the Prime Standard on the Frankfurt Stock Exchange since July 17, 2012.