Bike brand Canyon highlighted a 23% rise in sales for the first nine months of 2023 but admitted that discounting and supply shortage due to issues at one of its suppliers meant it made a surprise loss of 1.3 million euros.
The German-based direct to consumer brand made a profit of 13.5 million euros in the same period last year, with the reverse in profit confirming the current problems of the bike industry after the boom of the COVID-19 pandemic and the subsequent oversupply and fall in sales that have hit many brands.
Giant, the world’s largest bike manufacturer, reported a 49% slump in profits amid “weak demand” from European and US markets to just £38.1million for the third quarter of 2023.
Other brands and distributors have suffered even more, with WiggleCRC entering into administration, cutting jobs and switching off international sales channels in the hope of finding a buyer.
According to a statement from Groupe Bruxelles Lambert, which acquired Canyon in 2020, sales in the first nine months of 2023 reached 621 million euros, up from 506 million euros in the same period of 2022.
Despite higher sales volume, Canyon’s EBITDA (Earnings before interest, taxes, depreciation, and amortization) declined 6%. The supplier issues affected the availability of Canyon’s road and gravel bikes in the third quarter but GBL claimed they have since been resolved.
Canyon CEO Nicholas De Ros Wallace tried to look on the bright side of the brand’s results in a statement sent to Cycling Weekly.
“We saw most companies in the bicycle industry responding to inventory challenges with large discount campaigns in 2023.
“When we also decided to do so, it not only led to increased sales, but also inspired new and existing customers to interact and engage with Canyon, and ultimately to enlarging the cycling community.”
Canyon is known for its road, gravel and ebikes and enjoyed significant success at professional level thanks to sponsorship of Mathieu van der Poel and his Alpecin-Deceuninck squad, while Kasia Niewiadoma won the women’s Gravel World title on a Canyon due to racing with the Canyon-SRAM team.
In January this year, Canyon reduced the prices across its range by up to £400 in Britain and made similar discounts in other countries, including the USA, as it fought with rival brands for sales.
“While high inventory levels and high discounts are at play in the bicycle industry, 2023 still saw the company continue its strong growth trajectory,” Canyon…
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