TAIPEI (BRAIN) — Taiwanese bike makers Giant Group, Ideal Bike Corporation and Merida Industry Co., LTD each released their first-quarter earnings reports this month. Merida was the only one of the three to record a sales increase in the quarter, although its profits in the quarter were down significantly from the same period in 2022.
Giant's total first-quarter operating revenue declined 9.6% year-over-year, from NT$22.3 billion last year to NT$20.1 billion ($652 million) this year. Giant's total profit from the first quarter was NT$883 million, down from NT$1.91 billion last year. Earnings per share declined from NT$4.83 last year to NT$2.13 this year.
Giant said the revenue decline was “due to the impact from European and North American markets to reducing inventories plus higher comparison base with last year.” It said its gross margin decreased to 21.9% due to discounts and lower production utilization rate. It noted that its net profit before tax came in at NT$1.52 Billion, a decline of 41.3% year over year, which was affected by non-operating expenses such as an exchange rate loss of NT$82 million compared to a gain of NT$230 million in the same period last year, and an increase in interest expenses.
Giant said in the first quarter, sales in China had the best performance due to the post-pandemic recovery of consumer spending there.
It said its Europe and U.S. sales were affected by higher inventories in the entry- to mid-level products, leading to sales declines in the high single digits and double digits respectively. It said e-bike sales contributed 32% of total sales in the quarter.
“The e-bike segment is still growing, which will further increase average selling price and profit,” the company said.
Giant said consumer interest in e-mobility, eco-friendly and fitness products would continue to drive sales for mid-level to performance level products. “Giant remains optimistic in mid- to long-term growth for the cycling industry,” the company said.
Merida Industry
Merida's Q1 first-quarter operating revenue increased 2.8%, from NT$8.2 billion last year to NT$8.4 billion ($271.9 million) this year. Merida's total profit from the first quarter was NT$627.5 million, down from NT$1.2 billion in the quarter last year. Earnings per share declined from NT$4.04 last year to NT$1.89 this year.
Ideal Bike Corporation
Ideal's total first-quarter operating revenue declined 1.8% year-over-year, from NT$1.13 billion last year to NT$1.11 billion ($36 million) this year. Ideal's total loss from the first quarter was NT$38.8 million, compared to a profit of NT$94.53 million. Earnings per share declined from NT$0.14 in Q1 last year to a loss of NT$0.17 per share this year.
