TWICKENHAM, United Kingdom (BRAIN) — Folding bike brand Brompton Bicycle Limited recorded a 5.3% decline in revenues in the 12-month period that ended March 31, 2024, according to filings made in the U.K. recently.
The 9-month-old figures are the most recent available through the U.K.'s Companies House.
The company said "it was a challenging year," and explained that the miss in budgeted sales contributed to a decrease in profits. A delay in reducing costs — because of "the committed and fixed nature of a number of" the costs — also contributed to the poor profit result. Brompton said the sales slump was driven by global economic uncertainty and challenges in the industry.
The company had sales in the period of 122.6 million pounds ($153.4 million), down from 129.4 million pounds in the preceding period.
Profits took a larger hit. Pre-tax profits in the more recent period were 4,602 pounds, down from 10.68 million pounds in the earlier period. Non-operating income from interest and other sources totaled nearly a half a million pounds, making Brompton's operating loss 469,659 pounds.
The company received a cash infusion in May 2023 that bolstered its balance sheet, so it ended the recording period with 65 million pounds in cash on hand, up from 49 million pounds a year earlier.
Bike unit sales were 84,899, down 8.2% from 91,875 the year before. Exports accounted for 80% of unit sales, up from 74% the year before. The company said it saw a 13% increase in sales through its direct-to-consumer channel, where it sold 25,649 bikes in the period, including online sales and sales through its own Junction stores. Brompton said the D2C sales growth contributed to its gross profit margin despite the increase in costs in the channel.
The company achieved a higher average revenue per bike in the period due to a shift to more premium products, including Brompton's T Line and P Line bikes.
The company noted that it acquired its Japanese distributor during the period, part of its strategy of bringing distribution in-house.
Brompton is one of a handful of industry companies that is certified as a B Corp, an independent sustainability and DEI program. However, noted that in its financial year 2024 its average carbon emissions per bike increased because it sold more e-bikes and used more air freight in product development.
