Euro-Cycles Reports Strong Financial Results for 2024
Revenue Up 9.5% and Net Profit Soars 79.6% Year-Over-Year
Euro-Cycles' board of directors has approved the company's 2024 financial statements, which reveal a turnover of 119,631 MTND, a 9.5% increase year-over-year, and a net profit of 9,617 MTND, a remarkable 79.6% improvement compared to 2023.
The revenue figures were already known since the publication of the activity indicators for the last quarter in January. They were achieved through the sale of 350,836 bicycles during the year. It's worth noting that the context was not particularly favorable for the company. Globally, 2024 followed 2023, a year marked by an oversupply resulting from overestimated demand forecasts. Prices dropped to clear inventory, posing significant challenges in terms of maintaining profitability in a highly competitive environment.
On the other hand, the company embarked on an expansion into new markets, such as Spain and Portugal, which offer growth and revenue diversification opportunities. Prospecting efforts also targeted France and Ireland. This will help reduce dependence on specific markets and stimulate long-term growth for the company. Moreover, diversifying clients can provide protection against economic fluctuations in a single market.
During 2024, transportation from Asia was under tension, with risks in the Red Sea leading to increased transit times and longer ship rotations. Additionally, ships operating at full capacity resulted in higher transportation costs. Disruptions in the supply chain led to higher costs.
We can say that the year was a success for Euro-Cycles. In light of this performance, the proposed dividend is 0.600 TND per share. The net dividend yield is 3.6%, affected by the rise in market prices. The stock has shown a 25.3% return since the beginning of the year.
