NCTE AG reports challenging first half of 2024 in the e-bike market – sales down 40%
| Key Figure |
H1 2024 (TEUR) | H1 2023 (TEUR) | Change |
| Sales Revenue | 1,823 | 3,058 | -40% |
| EBITDA | -699 | 317 | -321% |
| Incoming Orders | 1,582 | 958 | +65% |
| Book-to-Bill Ratio | 0.87 | 0.31 | +177% |
NCTE AG went through a challenging phase in the first half of 2024, which is reflected in the financial (unaudited) results. While sales revenue and EBITDA are declining, there are positive developments in incoming orders.
The significant changes in sales revenues and EBITDA compared to the same period last year are mainly due to developments in the e-bike market, NCTE’s largest segment. As confirmed by recent market analyses and reports surrounding the leading trade fair Eurobike 2024, the increase in production in the bicycle industry expected for the current financial year has not yet materialized.
At EUR 1.8 million, NCTE AG’s sales revenue in the first half of 2024 was 40% lower than in the same period of the previous year (EUR 3.0 million). EBITDA therefore fell to EUR -699 thousand in the first half of 2024, compared to a positive EBITDA of EUR 317 thousand in the same period of the previous year.
Successful order intake: NCTE AG records 65% growth
Incoming orders in the first half of 2024 amounted to EUR 1,582 thousand, which corresponds to an increase of 65% compared to the previous year’s figure of EUR 958 thousand. Some of the revenue from these orders is still expected for the second half of 2024, but also for 2025/2026. The book-to-bill ratio has risen to 0.87 compared to 0.31 in the same period of the previous year.
Forecast for 2024 adjusted
Due to the ongoing transition phase in the e-bike market, NCTE AG has adjusted its forecast for the year. The other NCTE segments Off-Highway (agricultural technology), Industry, Medical Technology and Motorsport will largely develop in line with the original guidance.
The revenue forecast for the 2024 financial year has been lowered to a range between EUR 4.7 million and EUR 5.7 million (previously: “between EUR 6.0 million and EUR 8.0 million”). EBITDA is expected to be between EUR -750 thousand and EUR -100 thousand (previously: “between a slightly positive result and EUR 1.0 million”).
Long-term trend towards e-bikes unbroken
The consolidation phase in the e-bike market is taking longer than expected by NCTE AG and many experts. In its balance sheet for the first four months of 2024, the ZIV (Zweirad-Industrie-Verband) sees e-bike sales in Germany slightly below the previous year, albeit from high inventories. Production was 16% below the previous year’s level. Many e-bike manufacturers and dealers around the world have filled their stocks during the coronavirus boom and in view of the growth potential.
Despite the challenges, the Management Board of NCTE AG remains confident about the prospects for growth. “The trend towards electric bikes and CO₂-free mobility in cities, from which we are benefiting in our core e-bike segment, has not been reversed, but only postponed,” says Dr. Jürgen Uebbing, CEO of NCTE AG. The ZIV (Zweirad-Industrie-Verband) expects a significant recovery in the bicycle industry in 2025. “We are ideally positioned as an e-bike supplier and also in our other segments of agricultural technology, industry and motorsport. Our healthy financial structure will also help us to significantly increase our turnover and earnings again in the future,” adds CFO Sebastian Müller.