The news is that the shareholders’ meeting of Colnago Ernesto & CSrl ratified the budget for fiscal year 2023, highlighting a notable increase in both revenue and EBITDA compared to the previous year. With a turnover that exceeds 55 million euros (55,715,101 euros, to be precise), an increase of 33 percent compared to the previous year (41,935,743 euros) with a difference of 13,779,358 euros, and a EBITDA (actual profit) of 25.15 percent, which marked an increase of 106 percent, the company is further consolidating itself in the cycling market.
Explosive growth
The company has seen extraordinary expansion, tripling its turnover since its acquisition in 2020 by the new majority shareholders. This result was driven by the top-of-the-range positioning in the cycling market and the established reputation of the Colnago brand, which celebrates its 70th birthday this year.
Statements by CEO Nicola Rosin
Nicola Rosin, CEO of Colnago, expressed great satisfaction with the result, attributing the success to the company’s mission to be the most desirable bicycle brand in the world. Rosin underlined the importance of partnerships in professional cycling, highlighting the fundamental role of the UAE Team Emirates and UAE Team ADQ teams in the continuous improvement of Colnago products.
Governance and Future vision
Corporate governance was cited as a key element to success, allowing managers to operate in a happy and productive environment according to the company. A style of work that Colnago will also obviously aim for in the coming years.
A year against the current, what are the reasons?
A year of great progress for the Italian brand which decidedly went against the current trend market trends. How to explain this countertrend?
There are at least three aspects that we must consider when analyzing the situation beyond the declarations of a rightly enthusiastic press release. Here they are.
The men’s and women’s professional teams certainly had a more than positive impact, but the weight of a champion like Tadej Pogacar is certainly felt. Historically, on the other hand, it has always been like this.
Then we need to consider the brand’s foreign trend. Colnago is known and recognized abroad (even though, the company tells us, Italy is the country where the brand has grown the most). It is a very strong “brand” outside our country (perhaps more so than in its homeland where it has many competitors). Furthermore, it must be considered that if cycling is in a moment of crisis here, in other countries (think of the East) there is an explosive moment.
Finally, the managerial attitude of the group which has led to aligning itself with the turnover of other brands which previously seemed to have more difficulty keeping up. Naturally, these three aspects put together also raise the bar for the future.
Tags: Tripled turnover EBITDA percent
