Sep 20, 2023

September 19, 2023 The Belgian e-bike manufacturer Cowboy has had a profitable month for the first time. The brand also sold a record number of electric bicycles in July. Article continues after advertisement Cowboy CEO Adrien Roose reports this on LinkedIn . According to the CEO, the Belgian e-bike company is ‘in a strong position’ to achieve its goal: becoming profitable throughout 2024. In previous years, Cowboy suffered heavy losses. According to Roose, there are three reasons for Cowboy’s improved financial situation. The company’s gross profit margin – the ratio of gross profit to sales – now stands at more than 40 percent, which the CEO says is “in line with the very best in the cycling industry.” At the same time, operating costs have fallen by 30 percent year-on-year, thanks to “driving efficiency and productivity.” Finally, sales of the latest e-bikes have increased by 40 percent compared to last year. read more Last year a loss of 32 million euros Cowboy was founded in 2017 and has never written in the black before. Last year, the Brussels company suffered a loss of almost 32 million euros. Earlier this year, the e-bike maker raised millions of euros during a capital round, both through crowdfunding and from existing shareholders. Article continues after advertisement Just before competitor VanMoof went bankrupt, Cowboy came up with a number of measures to improve its financial situation. For example, the brand introduced a cheaper version of its e-bikes, with a chain instead of a belt drive. The other models also became about 10 percent more expensive. This was necessary ‘to stay healthy’, Cowboy told Bright at the time. read more Comparison with VanMoof Cowboy is sometimes compared to VanMoof. Both bicycle makers are known for their modern and trendy e-bikes, with apps with smart functions, and their online sales. But they also have in common the efforts of both companies to keep their heads above water financially. VanMoof made a loss of approximately 80 million euros in 2021 and 2022. After the Amsterdam bicycle brand was declared bankrupt in July, it was taken over at the end of August by Lavoie, a British company that makes e-scooters and is part of McLaren Applied. To get VanMoof going again, Lavoie must invest tens of millions of euros. At the time of bankruptcy, the Dutch e-bike maker was carrying a mountain of debt of 144 million euros. E-bike makers in dire straits Several manufacturers of electric bicycles are having a difficult year and are struggling with large inventories due to the disappointing demand for e-bikes. The well-known Swiss e-bike maker Flyer is also in dire straits: it has to lay off many employees. In August, the Dutch e-bike brand Amslod also implemented a reorganization. Also read: Another e-bike manufacturer in dire straits read more