According to Rapha's annual financial statements through 2023, filed with Companies House on October 18, the brand under Carpegna Ltd. posted an operating loss of £21 million, the seventh consecutive year of losses for the British cycling brand.

While this is definitely not the company's ideal, the fact that it is still around is perhaps worth celebrating in light of the industry headwinds that have seen layoffs and brands going out of business altogether.

The company ended the year with another operating loss, but EBITDA (earnings before interest, taxes, depreciation, and amortization) turned positive. However, the number of new web customers fell by 30,000 from last year, from 118,000 to 148,000, and membership in the Rapha Cycle Club (RCC), the brand's member suite, dropped by 4,000, from 22,000 to 18,000. Web customer lifetime value also remained about the same.

The loss is also framed in terms of some behind-the-scenes changes in the business. The brand's two regional distribution warehouses were closed and distribution was consolidated nationally. This transition reportedly took a hit of just under 3 million pounds on the balance sheet. The brand also appointed a new CEO in August of this year (Fran Millar, formerly of Ineos Grenadiers).

A review of the headline figures as well as key performance indicators for the business states:

“Amidst continued turbulence and competition in the post-pandemic cycling sector and declining consumer confidence in several key markets, Rapha continued to strengthen its core businesses and to improve its performance in the face of the economic downturn, EBITDA before exceptional items turned positive”

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Digging into the reported sales figures, a decrease of £8 million is reported from 2023. By region, the largest sales declines are reported in the UK market (approximately £4 million) and Asia Pacific (approximately £3 million). This is probably due to the cost-of-living crisis continuing to affect the UK market. The U.S./Canada and European markets reported similar sales growth compared to the same period last year.

For readers concerned about the near-term viability of the company, the independent auditor's report on Carpegna Ld.'s accounts “casts serious doubt on the continued ability of the group and company as a going concern for a period of at least 12 months from the time the financial statements were approved for issue We have not identified anything that is likely to do so.”