TAICHUNG, Taiwan (BRAIN) — As fears of COVID 19 have swept through markets worldwide, Giant Group is bracing for a difficult year ahead. However, record revenue for 2019 should help bolster the multi-national company as it attempts to minimize the virus’s impact on its global operations.
In a news release Monday, the Taiwan-based manufacturer reported a 5.3% increase in overall revenue for 2019 — a record NT$63.45 billion ($2.1 billion). “This is an historical record for Giant Group,” the company said.
The key revenue driver last year was the growth in e-bike sales in Europe and a double-digit recovery in the Chinese domestic market based on China’s local currency, the release said.
“Europe out-achieved the rest of the markets with double-digit growth compared to 2018,” the company added. However, it did not reveal unit numbers nor average wholesale pricing. Still, e-bike sales in Europe grew 40% over 2018.
As for the U.S. market, Giant said its subsidiary saw modest “single-digit” growth as it “optimized” its products for U.S. consumers. The company offered no breakout on unit sales, types of bicycles sold, or overall revenue for its U.S. operation.
Income before taxes came to NT$4.81 billion, a 13.3% increase over last year; while after-tax income grew 17.8% to NT$3.37 billion.
Earnings per share for 2019 was 30 cents (NT$9.00) and shareholders could earn 15 cents (NT$4.60) per share if the company’s board of directors approves the dispersal at its June 19 meeting
On Monday, Giant’s share price on the Taiwan exchange stood at NT$138.50 per share. In June of last year, Giant’s stock traded at a high of NT$257.00. Its share price bottomed on March 23 at NT$116.00, but has since regained 19% in value as of Monday.
The company warned that forecasting for 2020 would be difficult. “The COVID-19 virus has caused significant disruption to the growth momentum of the global economy. Asia, Europe and North America are facing wider spread of the disease. With uncertainties surrounding the global economy, it poses many challenges for Giant,” the company warned.
“Giant will continue to monitor the development of the situation and adapt proactive measures to minimize any impact to Giant’s global operation,” the company said.
