Welcome to today's earnings call presentation for the fourth quarter. My name is Andrés Martin-Birner. I'm the founder and CEO of Bike24. At my side, as always, is Timm Armbrust, the CFO of Bike24. Let me now start with the general update on the fourth quarter of this year before I hand over to Timm for the business update, finishing with a general summary, the Bike24 2025 guidance, and then Q&A session. The fourth quarter was very successful overall and clearly shows again the positive trend. Despite a difficult market environment, we achieved a revenue growth of +7% and an Adjusted EBITDA margin of +3.2%. This was the strongest sales growth since Q3 2022. On the other hand, our focus on profitability is also paying off. We achieved this result due to a significantly better gross margin, strict cost discipline, and a more focused marketing strategy.
In particular, the continuous improvement of our offering for our customers led to growth in all core markets: DACH + 8%, Spain, Italy, France, and Benelux. These are localized countries with sales growth of plus 10% and Rest of Europe plus 8%. Especially sales growth in Benelux remains strong at 26% in the second year of localization. Moving on to our assortment segments, our core PAC segment recorded sales growth of plus 8%, which once again demonstrates the importance of the expert enthusiast bike market. On the other hand, despite a difficult market environment, here it means that current reports show that the German bicycle market has fallen by 10% in 2024, we were still able to generate robust sales growth of plus 3%. This was the highest sales of full bikes in the fourth quarter than ever before.
In terms of inventory, we made further progress toward a healthier position. Especially PAC inventory was reduced significantly versus December 2023 by 16%. To look ahead for the financial year 2025, we expect further top and bottom line improvements. In particular, supported by strong PAC sales, we anticipate sales growth of between EUR 232 million and EUR 242 million, which means growth of between 3% and 7%, and an Adjusted EBITDA of between EUR 7 million and EUR 12.1 million. We therefore expect the positive trend of the last few quarters to continue, and we consider the results of the last few weeks with double-digit sales growth to be promising. This was the intro from my side. Timm, over to you for the financials.
Yes, thanks, Andrés, and also a warm welcome from my side. Let me start by walking you through the financial figures for the fourth quarter of 2024. Overall, we increased our revenues in Q4 by 7%. This continues the positive trend we have seen in previous quarters. While growth in Q3 was still at 3%, we were now able to accelerate it significantly. The development in the PAC segment is especially promising. With an 8% increase in sales, this was the most dynamic category. This was mainly driven by significantly improved product availability. Especially during Black Friday, we were able to present our customers with very attractive offers. The Bike segment also grew by 3%. That's a strong result, especially when considering that the overall market in our core market, Germany, declined by 10% for the full year.
Looking at the regional development, we recorded clear growth in all markets. The only exception was a small non-strategic Rest of World region, where revenues continued to decline. This is mainly due to increasingly restrictive distribution strategies by some brands in those markets. However, since this region represents only around 3% of our total revenues, its impact on Bike24's overall performance is tiny. Let's now take a closer look at our key regions. In our core market, DACH, we increased revenues by 8%. This is primarily the result of shifting our customer mix back towards enthusiasts. Also, the number of customers remained stable. We increased average revenue per customer by 8%. This proves that our positioning and our secret sauce, assortment, availability, fast delivery, attractive pricing, and expert customer support continue to work well. In our localized markets, France, Italy, Spain, and the Benelux countries, the picture is intentionally different.
Equally positive, as we are still in the early stage of market development with a clear focus on winning new customers. Our efforts are working well. The number of active customers increased by 11%, while average revenue per customer remained more or less stable. As a result, we achieved 10% revenue growth in this region. As Andrés mentioned earlier, the development in the Benelux region is especially noteworthy with plus Rest of Europe, meaning countries with also localized web shop that mainly order via our .com domain, we also saw strong growth, plus 8% revenue in Q4. This was mainly driven by improved product availability and ongoing inventory reductions across the market. As a result, customers are increasingly returning to platforms like Bike24 that offers a full product portfolio of the bike industry.
Before we move on to full year numbers for 2024, let's take a brief look at the P&L for the quarter four. We improved our Adjusted EBITDA margin from - 7% to plus 3.2%. Part of this improvement is due to one-off effects related to provisions for aged inventory, but the operational improvements are clearly visible. We increased our gross margin by 2.2 percentage points on an operational basis. We also made progress on the cost side in every area. Let me highlight a few points. Marketing costs were further reduced relative to revenue despite 8% sales growth. Personnel costs improved by 4.3 percentage points year-over-year. This reflects the results of our resizing to the current company size of the past 18 months. Fewer employees combined with rising revenues lead to a strong leverage effect. To sum up, Q4 was a very successful quarter.
Revenue growth, improved margins, and optimized costs clearly show we are on a solid path to operational recovery. While we haven't yet reached our EBITDA target, this was a very meaningful step forward. Let's now turn to the full year 2024. Overall, Bike24's revenue in 2024 was stable, but the turnaround is clearly visible. Q1, still declining revenues. Q2, plus 1%. Q3, plus 3%, and Q4, plus 7%. This means we managed to stabilize and accelerate the business quarter by quarter. We also made visible progress on the balance sheet. Net working capital was reduced by 19%. This was mainly driven by the consistent sell-through of excess inventory, allowing us to reduce our stock level by 14%. As a reminder, at the peak of the crisis in the bicycle market, we had over EUR 90 million in inventory. This had a direct impact on our free cash flow.
In combination with the improved operating results, inventory reductions and lower investments significantly boosted free cash flow. We used most of the free cash flow to deleverage the company, repaying a total of EUR 8 million in bank loans. The full year profit and loss statement also clearly shows Bike24 has achieved its operational turnaround. Adjusted EBITDA margin improved from -1.3% to +2.4%. In absolute terms, from -EUR 2.9 million to +EUR 5.3 million. Gross margin increased by 3.1 percentage points. Performance marketing and sales cost decreased significantly related to revenues. Personnel costs were also reduced, also partly offset by salary increases. One important note here, the personnel measure decided in November 2024 are only reflected in one-twelfth of the annual figures. For 2025, we expect these measures to have a positive effect, sorry, on personnel costs of EUR 2.3 million.
With that, I conclude the business update and hand it back to Andrés.
Thank you, Timm. Following an already successful third quarter, we were also able to increase sales and profit in the fourth quarter. It shows that our focus on profitability is paying off. The known reasons are the improved gross margins, discipline on costs, and our improved marketing approach. The fact that we were able to increase sales in all focus markets is a good sign of a trend reversal. We are also pleased to report the highest sales of bikes we have ever had in the fourth quarter. Our continued focus on our working capital and improvements in our operating business have generated strong free cash flow in 2024. As a result, what Timm also mentioned, we were able to reduce last year the Bike24 debt by EUR 8 million.
Our strategic focus over the last years of rolling out our business model to other European countries, that means driving forward localization and investing more in the full bike assortment, is showing sustainable success. This is also demonstrated by the results in January and February with double-digit sales growth and even accelerated growth in March. To finish, let's look ahead. With a return to substantial growth in Q4 last year and the promising results of the last few weeks, we anticipate a sales growth between EUR 233 million and EUR 242 million for 2025. We also expect Adjusted EBITDA to improve this year, primarily thanks to operating leverage and cost savings. Overall, we expect to improve our profit with Adjusted EBITDA of between EUR 7 million and EUR 12.1 million. I would now like to thank you for your attention, and now we are open for your questions.
Yes, thank you for the presentation, and we will now move on to the Q&A session. For a dynamic conversation, we kindly ask you to ask questions in person via the audio line. To do so, click the raise your hand button. If you're dialed in by phone, please use the key combination star nine followed by star six. If you are not able to speak freely today, you can also place your question in our chat box. I'll wait a few seconds for the first questions to come in via the audio line. Yes, Mr. Specht, you should be able to speak now.
Hello, can you hear me?
Yes, we can hear you, but maybe you speak a little bit louder.
Okay, three questions from my side. I honor the massive turnaround on the Q4 figures you, let's say, put in the front to us. If I look at the early localized markets, France, Italy, Spain, on a yearly basis, they are quite significantly down. Do you expect this not to repeat in this year, or do we need some more marketing spend in these markets to come back on a growth track? That would be the first question. I would be interested in the PAC full year growth figure. If I look at the customer development, you showed a decline over the full year, which was, let's say, balanced towards the revenue line by higher basket size. Do you believe this pattern can continue, or would you rather believe it would be worse to invest into new customers going forward?
Yes, thanks, Mr. Specht, for the question. Maybe I will start with the first question. France, Italy, and Spain, yes, we saw a decline on a full year basis. As we also mentioned in previous calls, we changed our marketing strategy in that region significantly. We put the focus more on bike enthusiasts because what we saw is with too much spending in this region on marketing, we acquire customers that we are not able to convert into really sticky customers. Before, we were looking more for head terms like, "I would like to buy a bike" and to make advertisement on that. Now we are more specific and attracting more enthusiast customers, and that pays out. From beginning Q3, we turned it around.
Also in Q4, it was not a significant growth, but in that regions, we are already growing on the customer base size. We are promising that that was the right decision and looking forward to the 2025 figures there. The second question, it was related to PAC full year. Could you elaborate what you are looking for?
You showed the growth figure for the fourth quarter, but I would be interested how PAC subsegment works for the full year.
It was - 1% overall. We had a little bit more, a little slightly growth of 3% in the Bike segment, and PAC segment was down - 1%.
Maybe on the mix customer and basket size, would you still expect a slight decline this year on the customer side as well?
No, I think I'm not 100% sure if it will be a decline or if it will be stable or a small increase. Still, what I told you about the fritz, it's overall our strategy that we are more focusing on the very profitable bike enthusiast and moving a little bit the marketing expanded away from, I would say, the entry and mid-market segment. We will see also that trend in 2025. We also give you, I think, a slight ahead of the Q1 figures, and also the customer growth of new customers compared to last year is very good and is a double digit at the moment.
Okay, thanks a lot.
Thank you. We move on to the next participant. Mr. Spang, you should be able to speak now.
Yes. Hi, good afternoon, gentlemen. First, on the outlook for 2025, coming from the strong gross profit margin increase in 2024, you said that you also expect the operating leverage effect for 2025. What should we expect in terms of gross margin in 2025? That would be my first question.
Of course, first, we are a little bit depending on the market environment, yeah, and we have to look to the market price development in our core regions. This is, of course, the point what we are looking for. The very important thing is to increase gross margins. When we see there is a chance or opportunity to do this, then we do this for this year. Especially what you see or what we saw last year is the pressure on the full Bike segment regarding the margins. This is the point or the segment where we see the overcapacities in the market. It is a little bit too early what the season brings. Yeah, of course, the first few weeks started very well. For us, it is not 100% clear what are the overcapacities in the industry or of competitors.
This is the main point, what is depending on this gross margin issue. We see better gross margins in the PAC segment because they are all, I would say, 90% of the overcapacities are over. Yeah, 20%, as you know, of our revenues came from or are coming from bikes. This is the thing because we are not 100% have the transparency from the market.
Do you think that you can make the next big step towards the 30% this year, or will it take another, I don't know, one, two, three years?
No, we do not expect a big step in gross margin. We are expecting a positive step towards the 30% again, but not a big one. There are still, I think, uncertainty in the market is still there. That will be again a step forward, but not a big one.
Okay. Regarding your statements for the first month of 2025, you said that you experienced a double-digit revenue increase in January and February and a significant increase in March. What numbers should we have in mind if we talk about Q1 in special? Is it more on the low double-digit area, or is it possibly in the mid-single digit? Because double-digit is a very big range.
Mid-teens, can we say that? Mid-teens.
That's good. Also regarding your statements for the first month, I was wondering because if we hear from other consumer brands, not in the bike area, but for classical consumer goods, these statements are completely different to yours. What do you think, or why do you think the bike area is in the first month? We will see how this will develop in the rest of the year, but at the beginning of the year, different to other consuming areas.
Okay, maybe I can add something else for what Timm mentioned. It is clear for us the year started very well, and I think also a little bit better than expected. On the other hand, you have to see in our core market, I would say the season started very early.
We had sunny weather in March of around two weeks, and this is really a tailwind for Bike24. It is always a tailwind when the season starts very well. That is also the reason why it is a little bit early to say what the full year effect is. That is also the reason why we are a little bit careful with the full year guidance. It is sure that we will finish the first quarter with a low double-digit growth. I see that is really the trend reversal, and it is higher than the last quarter in Q4. We are looking very optimistic for the full year. On the other hand, we are careful because the macroeconomic conditions are unclear. The consumer sentiment is unclear for us, how it will develop. That is why we are a little bit careful for the full year.
I think in the end of May, we have a clearer view of the full season.
I would like to also add that we also did our homework. It's not only the weather. It's also, I already mentioned during the presentation, it's our availability of products. We are really, compared to last year, more attractive for the bike enthusiasts. That is also one of the main drivers for the revenue growth, especially in January and February. In March, as Andrés mentioned, also the positive weather comes into account.
Yeah, okay. Thanks.
Thank you very much. We move on to the next participant, Mr. van Spe . You should be able to speak now. Mr. van Spe , you should be able to speak now.
You hear me? Hello?
Yes.
Congratulations to these very impressive numbers. It is also great to hear that you expect double-digit growth in the first quarter, especially in relation to last year, where I think you had double-digit negative growth in the first quarter. I have three questions. First, could you give more insight for the credit terms? Do you still have to repay EUR 2 million per quarter? Can you do with the cash what you want to do? I do not know, invest, or do you have to keep a certain amount as security for the bank? The other thing is, in your annual report, which is also online, you are doing an interview, and you are talking about cost cutting, that you have cut costs in the fourth quarter. We will see more of that in 2025. The last thing about Poland, you said you will open in Poland.
What do you expect from there?
Okay. Thanks, Mr. van Spe, for the question. I would say I will answer the first two questions. Credit facility and the new agreement, we have to repay the debt by EUR 6 million, not EUR 8 million. We have there a reduction. On top, we get additional operational flexibility. The minimum liquidity that we have to show, that's including the revolver, very important here, not only the cash, also the undrawn revolver, that's still EUR 8.5 million, was last year between EUR 8 million and EUR 12 million. This year, it's only EUR 5 million. If we reach a certain threshold in net leverage, then that will be zero. It will be out of the credit facility. Overall, I could really say that we have more flexibility, that we could really buy products to be successful.
We're still looking sure where we invest, but it's a different situation than last year, an improved situation. Second one, the cost measure in November, yes, we did a reduction in personnel expenses. I also mentioned that during the presentation that was in 2024, only one-twelfth the effect in the figures. For 2025, that saves us up to EUR 2.3 million personnel expenses. This will be also, I think, netted a little bit with salary increases. Overall, we will see a reduction in salaries and personnel expenses for 2025. The third question, I hand over to Andrés about Poland.
Yes. I think I can answer these questions regarding to Poland and to our localization. As you know, we also localized or we do the localization for Finland. In both countries, we roll out beginning of March. What we expect is, to be honest, a little bit comparable to our localization for other countries or regions in Europe. I would say high double-digit growth rates and over-average growth rates compared to other countries we are localized. On the other hand, it's really very early to say how big is the impact to our business. To be honest, it's clear that we first localized the big countries and the big cycling nations in Europe with France, Italy, Spain, Benelux. The countries are really smaller. On the other hand, it's a part of our strategy.
I think there are many, many customers we can achieve with our assortment also in Finland and in Poland.
Thank you very much. Thank you.
Thank you. We have a question in our chat box. I will read this out to you. Are the non-DACH activities still loss-making? If so, can you give an indication of the level of startup losses? How long do you expect it will take for the non-DACH activities to break even?
No, the non-DACH activities are positive from the beginning. The good thing at our business model is we only have very small investments in the beginning, EUR 100,000-EUR 200,000 per country only for the translation. Everything else is doing automatically translations for all the products. We ship from the warehouse Dresden or Barcelona. We are from beginning profitable. For sure, regarding the shipping cost, if you send a parcel to a customer in Germany or a parcel to a customer in Spain, that's for us very cheap here because we have a local warehouse there. The difference is only a little bit more investing in marketing and higher shipping expenses. The rest is the same pricing, is the same gross margin, is the same. We are profitable also in all other countries with the first order.
Thank you very much. We will now move on to our participants via audio line. We have a user, and I will give him the possibility to speak.
Hello, this is Mathias Miebel calling from Copbank. Hi. I have a question regarding your focus on the bike enthusiasts. Can you give us any numbers on how big you think the TAM for bike enthusiasts is in your targeted market? Within that subgroup, given that you are financially constrained right now, can you fully exploit the growth potential there? Is there under-targeted growth potential in the subgroup of bike enthusiasts?
There are no exact numbers. What is the part of the market of bike enthusiasts? It is really a little bit guessing. What our internal discussing, also with external people from the market, is that around 25% of the market is the enthusiast. What we see is that that market is growing. We have that mega trend that is still fully intact. On the one hand, it is overall the investment in cycling infrastructure. A lot of governments investing in cycling infrastructure make biking more attractive. That leads to more customers cycling to work, for example. An enthusiast is not anyone who only takes races or goes with the mountain bike. No, it is not. Also, an enthusiast is someone who uses the bike very often and is looking for high-quality bikes.
On the other side, I think other side also the health and fitness trend is still there. The main part or main driver of this mega trend is an active lifestyle. Also there, Bike24 and the products we sell come into account. That is the reason why the bike enthusiast market is so attractive, is growing, and also in the future is growing. On top of that, what is very positive about that market, the customers spend a lot of money and not only one time each four years. We see the customer very often on our platform, our average customer as an existing customer buys at Bike24 three times a year. That helps to keep the marketing cost very low. That is why we see that market or that part of the market so attractive.
Maybe as a follow-up on this, this focus is also for the full Bike segment. You say there is oversupply in full bikes and given your history that you used to do only PAC, not full bikes. What is so, if you excuse my English, so fucked up with the, let's say, value chain in full bikes? Like a personal anecdote, I tried to buy a Cube bike in the, let's say, EUR 4,000 range. It was not available on Bike24. It was not available at a local Cube shop. I was also wondering, this bike had a number two ranking in the newspaper too. Why is it not available? Why is the supply chain in, let's say, race bikes, not balanced? What is the problem since after COVID?
Yeah, when you look to a specific bike model, yeah, sometimes it's not so easy to.
What's your example? A very common middle-class bike. It's not super.
Yeah, yeah, that's clear. To be honest, when you see the supply chain or development of a bike, it's not like fast fashion. When they do the planning, and I'm not the manufacturer, sometimes it's also for the industry very hard to predict what the models with the high demand for the next season. They try it, but when you see the numbers or the statistics for the bike manufacturers, they are a little bit same behavior like Bike24. They are a little bit careful. They have also the issues or had the issues with cash and overcapacities and overstock. That is the reason why I think they're very careful. I think for the industry as a whole, is it good to see gaps? Because the price level is maybe increasing a little bit more.
I would say the demand, when the demand is okay and the availability is a little bit lower, we expect that those gross margins are higher. That is, I would say, it would be a good trend. On the other hand, to be honest, I think the main overcapacity problems we see in our industry is the e-bike market and a little bit the bio-bike MTB market. When you see bike manufacturers focusing on gravel or on race or road bikes, they are in a really better situation than maybe a company with a concentration only to e-bikes or to cheap bio-MTBs. That is a little bit the difference. We see it a little bit positive when we have gaps and the demand is high.
On the other hand, regarding the supply chain, it's very hard to predict the demand of a bike.
For your models, you still think that selling full bikes, taking them on your balance sheet, taking the risk of we have to basically call what people will want in six months or nine months is a good model for you? It is tying up a lot of capital as well. You think that the full bike is still non-negotiable for your business model?
Yes, it still has a time in our or it has a place in our business model. I think we communicated that our target level is 25% of our revenues. We know how attractive the PAC segment is. Also in the Bike segment, what's very attractive is due to the e-bike shift, the average price is very high. In the end, maybe from the gross margin level, it will not reach the PAC level. On the other side, due to the high ticket prices on the EBITDA margin, in normal market circumstances, it's more profitable than PAC. I think that compensates a little bit maybe a little bit longer time, lead time in the warehouse. On the other side, we sell round about a little bit more than 20,000 bikes. In Germany alone, it's only 5 million.
We focus on a very specific Bike segment going not into the entry level, going to the high tickets where the user knows what kind of bike I would like to have, what is my size, where the online player or the e-commerce player comes into place. We will not expand to bikes in the entry level where I think that's not a good business model for an e-commerce company.
In your thinking, is there also a marketplace model that could reduce your risk for, let's say, unwanted inventory sitting on your balance sheet?
No, we are really in the strategic discussions. I think we are happy to answer your questions and your thinking on the bike market in a separate call. What I can say is that at the moment, we are not looking to be a marketplace. We're discussing that sometimes, but at the moment, our focus is really bringing Bike24 back on track. It's now back on track and stick with the current business model.
One final question on the financing side during the run-up to the prolongation of your credit. Have you considered raising equity?
Not at the current share price.
Okay. Very good. Thank you. Go back in the line.
Welcome. Okay, thank you. One question out of our chat box. I will read it out. Do you provide midterm sales and margin ambitions? A question on your target numbers.
Yeah, to be honest, when we look back to the history, we were able to grow on a double-digit growth rate year by year till 2022 and 2021. Sorry. This is really what we are focusing for the midterm, that we have again double-digit growth rates in the nearest future, I would say.
Okay, thank you. One of our participants, Antonio Theodart, you should be able to speak now.
Hi, thank you for the presentation and the excellent results. Can you hear me well?
Yes.
Yes. Can you hear me?
Yes, we can hear you.
We can hear you.
Antonio?
Yeah, I can hear you well. Sorry about that. Two questions, please. The first one is, what's the sustainable free cash flow 2025, 2026, given that it is EUR 10.5 million was achieved in part by this inventory reduction? My second question, more specific to the last question, is, 2026, what's your target in EBITDA and growth rate? If you can be a little bit more specific about what range to expect. Thank you.
Yeah, so from the free cash flow perspective, I think we are with current goals, double-digit, as you mentioned, we will not see a further reduction in inventory this year. We think that at the moment that we not have to invest in inventory as well. Both sides, we will keep it stable, that our target. In the end, the free cash flow is fully driven by the operational EBITDA cash flow. That is regarding the free cash flow.
Sorry, you would say it will single-digit growth, I mean, would stay around single-digit growth, the free cash flow? How should we?
Single-digit growth if the EBITDA. I think it could also be a little bit less than this year because we do not have inventory reduction. We will keep the inventory reduction stable. One part of the free cash flow is round about EUR 10 million inventory decrease. On the other side, we are aiming for EUR 7-12 million operating EBITDA. Free cash flow will be this year with the still expected low EBITDA margins more or less stable to give you an indication. For 2026, we do not publish that figure as what we expect in EBITDA margin. We will also see in 2026 another step forward back to the high single-digit EBITDA margins, but it will not jump to 9% or something else.
No to 9% because if I remember correctly, your goal in 2026 was 9% or that's no longer the case?
In 2020, I don't know when was that goal.
Maybe it was from previous notes, but I shouldn't think about 2026 9%, maybe less optimistic.
Yes.
Okay. For revenue growth in 2026, what should be reasonable?
Today, it's really hard to predict, yeah, because we are so early in the season. I think when we are in the midpoint of the season, I think it's really easier for us to predict also for the full year this year. I think it's a little bit easier to have a forecast for 2026, yeah. On the other hand, it's clear that we are aiming for double-digit growth rates because we had it in our, yeah, we had it historical. We know what we have to do. The main thing is how the market will recover. When we have a good demand and good weather conditions in Europe, I would say, and we have a good macroeconomic area in the world, then it's really possible to come earlier to this growth rates to double-digit in 2026.
It is not so easy to predict today.
Got it. Thank you very much. Congratulations again.
Thank you.
Thank you. We move on to Mr. Schmidt. Mr. Schmidt, you should be able to speak now and place your question.
Yes, this is Ingo Schmidt from Montega. Thank you for the presentation, especially for the promising outlook. I have just one question left regarding the outlook 2025. How is the estimated revenue increase likely to be distributed between the PAC segment and bicycles? Will it be mostly driven by PAC again, or do you expect bigger improvements in the Bike segment as well, perhaps in the second half of the year?
To be honest, we are a little bit careful with our predictions in the full Bike segment. I think the main driver will be the PAC segment because we see here the rebound or the trend reversal a little bit heavier than to the PAC segment. For the full Bike segment, it's more, I would say, to maintain or to keep our market share and our revenue. That's I think what we are aiming for for 2025, not to lose revenues in full bikes and also to be profitable and to, I would say, to look a little bit to the gross margins level. That's what we are looking for. The main driver will be the PAC segment.
Okay. Thank you.
Thank you. In the meantime, we have received no further questions. I'll wait for some seconds. No. Oh, we have one in our chat box. I will read this out. Would you view another reason for stronger growth being your increased TAM due to the localization? In fact, doesn't this even argue for at least as bright a future than the past pre-2022 double-digit growth era?
Yes, sure. That's the main reason for the localization, but it's still too early. Yeah. We're coming out from the, I think, from the baddest market situation in the bike industry. Yeah. There are, I think, positive signs in the sky at the moment, but.
We are really careful, yeah, to this situation because it could also be a one-off, yeah, that the season started very early. What we also predict is that 2025, and we can confirm that there are many new products in the market. So it's a good demand for these new products. For us, it's good to see how developed the last few weeks, but we don't know how the consumer sentiment will develop in the coming few weeks. I think for us, the season is, I would say, additional or in addition, March and April because of the weather situation. I think in the end of April or beginning of May, we have a really better view on the season and on our market situation.
Okay. Thank you very much. No further questions in our chat box and via the audio line. We therefore come to the end of today's earnings call. Thank you for joining in this lively conversation. Should further questions arise at a later time, please feel free to contact Investor Relations. A big thank you to you, gentlemen, for your presentation and the time you took to answer the questions. I wish you all a lovely remaining week. With this, I hand over again to Andrés and Timm for some final remarks.
Yeah, thank you from Timm and Mike for the participation of our earnings call today. Thank you for your attention. Thank you for your questions. Yeah, we will see you again, I hope, and have a nice day. Bye-bye.