TAIPEI (BRAIN) — Giant Group says its inventory-to-asset ratios have returned to "healthy pre-pandemic standards" following an inventory streamlining program. The company also said sales to its original equipment customers were up 30% in the first half of its fiscal year.
As previously reported, Giant's sales in the first half were NT$32.6 billion ($1.1 billion), down 12.4% from the same period last year. In a press statement Friday, the company reported that the revenue decline was largely due to the appreciation of Taiwan's currency against the U.S. dollar and other Asian currencies. It stated that its gross margin rate in the first half was 19.1% and its net profit before tax was NT$850 million, a 66.7% decrease from the same period last year.
Net profit after tax was NT$560 million. Earnings per share was NT$1.42.
Giant said its second quarter revenue was NT$15.75 billion, a 25.6% decrease year-over-year. Q2 gross margin was 20.4%, which the company attributed to seasonal discounts and currency fluctuations. Net profit before tax in the quarter was NT$360 million, mainly affected by a foreign exchange loss of NT$230 million.
Giant said it OEM business was driven by recovering demand in Europe, while the sales performance of its own brands was "more conservative, influenced by a high base in the Chinese market last year."
It said U.S. consumer demand softened due to tariff policies and macroeconomic challenges, while Europe showed signs of moderate recovery, with mixed performance across regions.
"Looking ahead, the Group remains focused on optimizing operations and adapting to external changes, driving sustainable growth and delivering high-quality products to consumers worldwide," the company said in the release.
