Helkama posts millions in losses as bicycle market remains oversupplied

Helkama Velox has posted losses of more than 2.8 million euros, while production at its factory in Hanko, Finland, has been halted and around 30 employees furloughed, Yle reports. Chief executive Tero Valtonen says the company remains confident about its future.

Helkama Velox recorded a loss of nearly 1.4 million euros in 2024. Its factory in Hanko, which Helkama established in 1953, is the last production facility of its kind in Finland. Only warehousing and shipping operations are currently running.

The company says the Finnish and wider European bicycle markets are oversupplied. Demand rose sharply during the coronavirus pandemic, while supply disruptions led retailers to build up large inventories. Those inventories are still being cleared, leaving too many bicycles on the market and forcing prices down, Valtonen says.

Helkama has focused heavily on electric bicycles, which account for about three quarters of its revenue and almost half of its production volume. However, consumer caution has weakened demand for the products, which typically cost thousands of euros.

Valtonen says the removal of the tax benefit for employer-provided bicycles last spring caused an additional shock, particularly to electric bicycle sales. Many potential buyers have waited to see whether another incentive would replace the benefit.

Despite the difficulties, Valtonen rejects the idea that investing in electric bicycles was a mistake. He says the company is internationally competitive and believes bicycles will have an electric future.

Recent reports of economic growth and a recovery in private consumption have given the company reason for optimism. Helkama, which began operating in 1905, has weathered several major changes and downturns, Valtonen says.

“We have made major investments recently and believe in the future. Helkama has more than 120 years of history and another such period ahead. We are here to stay,” he says.