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Giant Group first-half sales up 27%; net profit up 65% as strong demand continued

Published August 6, 2021
E-bikes now 30% of its sales dollars.

TAICHUNG, Taiwan (BRAIN) — Giant Group set a new second-quarter record for net sales and earnings per share as global demand for its bikes and e-bikes remained strong. Sales of e-bikes, both under its own brand and for its OE customers, accounted for 30% of Giant's sales in the first half.

Despite supply limitations, a shipping container shortage and unfavorable exchange rates, first-half revenue grew 27%, to NT$41.99 billion ($1.5 billion). Gross margin for the half was 25.2% and net profit after tax was NT$3.55 billion, with an annual growth of 65.1%. 

The second quarter performance was strong even compared to a higher base from last year, the company noted. Consolidated net sales came to NT$21.37 billion, which set a new quarter record with a 8.5% increase compared to last year.


Giant said a high production capacity utilization rate and a better product mix offset increased costs in the quarter, resulting a gross margin of 26% and net profit of NT$1.85billion, up 21.5%. EPS for Q2 comes to NT$4.93 which also sets a new quarter record for Giant Group.

"With the uncertainties of COVID-19, bicycles remain as in high demand and inventory on hand at retail still low less than 30 days," the company said.

"Due to the limited supply on bicycle components, production rate will less likely to improve further and with increases in global ocean freight as well as increase in shipping lead time could bring some impact to both sales and profit growth for the second half of 2021.

"Nevertheless looking at mid- to long term, the global trend in moving towards green energy and raise in health awareness would continue support the growth of both regular bike and e-bike riders. Giant Group is still optimistic with the long-term opportunities in the global bicycle market and would invest in production capacity expansion by commencing Vietnam production facility project and increasing automated production to improve production quality so to ensure Giant Group maintain its leading manufacturing position and fulfilling market demand."

Topics associated with this article: Earnings/Financial Reports

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