Giant Group, the Taiwanese bike manufacturer and owner of the Giant, Liv, Momentum, and Cadex brands, reported that its Board of Directors had approved its 2024 first-half financial report, indicating a double-digit decline in revenues and net profit after tax.

As previously reported by SGB Media, consolidated revenue for Giant Group in the first half of 2024 declined 12.6 percent compared to the first half of last year, to NT$37.23 billion. The trend in the 2024 first half was bad news on several levels, as the company saw sharply reduced revenue numbers. That reduction also came in addition to an easier comp versus the 2023 H1 period, when revenue had fallen 5.4 percent.

As the sales of high-end bikes in China’s domestic market continued to grow, Giant Group reported that consolidated revenue in the second quarter was NT$21.17 billion, a decrease of 5.8 percent from the comparative Q2 period last year. While still negative, the second quarter was a clear quarter-over-quarter sequential improvement versus the first quarter, when Giant Group saw revenues fall 20.2 percent for the January through March period, on top of a 9.7 percent decrease in the corresponding Q1 period last year—the second quarter declined just 1.2 percent year-over-year in 2023, providing the 2024 Q2 period with easier comparables.

Income Statement Summary
The company said that due to profit growth in China, the Group’s gross margins were 21.3 percent of sales for the H1 period. Net profit after tax was NT$1.67 billion, a decrease of 17.1 percent from the H1 period last year. EPS was NT$4.27 for the half.

For the second quarter, Giant said that the Group’s gross margins rebounded to 22.2 percent of sales due to the increase in the proportion of its owned brands. Net profit after tax was NT$1.15 billion, a decrease of 2.5 percent compared with the comparative period last year. EPS was NT$2.94 per share for the quarter.

Outlook Summary
“Looking forward to the second half of the year, inventory adjustments in the European and American markets will return to normal, and the cycling trend in the Chinese market will continue to drive performance growth. It can be expected that the Group’s operations will gradually improve,” the company noted.

For an early look at trends going into the back half, Giant posted shipment numbers for July. The effects of de-stocking could be improving as revenues increased 16.6 percent to NT$7.57 billion. July 2023 had the second-largest decline last year, falling 29.1 percent year-over-year.

July 2024 had the biggest year-over-year increase and was the only positive month since April 2023.

The second half should provide opportunities for an improved trend line as Giant Group’s year-ago second half saw revenues fall 26.9 percent year-over-year, with a 29.8 percent decline in the fourth quarter, driven south by a 34.4 percent decrease year-over-year, the largest decline for any month for as far back as Giant tracks on its website through 2016. November and December were also down over 25 percent year-over-year.

The Giant Group reports financials in the New Taiwan Dollar (NT$).

Image courtesy Giant Group