EXEC: Giant Group 2024 Net Profit Falls on Lower Sales, Tighter Margins

Giant Manufacturing Co., Ltd. (Giant Group) has reported that consolidated sales for the 2024 full year amounted to NT$71.28 billion, a decline of 7.4 percent year-over-year. The company said that its owned brands in the U.S. and Europe markets continued to be impacted by a reduced demand.

Giant Group reports in the New Taiwan dollar (NT$) currency.

Total group gross margin declined year-over-year to 19 percent of net sales in 2024, compared to 22.1 percent in 2023. The company said the decline was due to the increase in inventory provision losses and more aggressive discounts, resulting in an inventory loss provision of NT$1.9 billion based on Group financial policy. Excluding the impact of this provision, the gross margin rate would have been 21.7 percent for the 2024 full-year period.

Although operating expense was lower than in 2023, the operating expense (OpEx) rate was 16.4 percent in 2024 due to the decline in revenues, resulting in a 60 percent decline in operating profit. OpEx rate for 2023 was 15.9 percent in 2023.

Giant Group’s net profit after tax came to NT$1.26 billion in 2024, a year-over-year decline of 62.8 percent. EPS was NT$3.22.

The Giant Group Board of Directors has approved a cash dividend of NT$2.2 per share and the consolidated financial report will be approved in the AGM on June 23.

Fourth Quarter Summary
In the fourth quarter of 2024, Group consolidated sales reached NT$13.59 billion, a decline of 8.5 percent compared to Q4 2023.

Heavy discounts in the U.S. and Europe, a soft sales performance in China, and increased inventory provision expenses drove the Group’s gross margin down to 13.5 percent. Excluding inventory provision expenses, the Group’s gross margin would have increased to 18 percent of net sales.

Due to the greater decline in gross profit compared to the decrease in operating expenses, the company incurred an operating loss of NT$1.04 billion and a net loss before tax of NT$920 million in the fourth quarter.

The income tax benefit resulting from the quarterly loss amounted to NT$37 million, leading to a net loss, after tax, of NT$910 million.

Outlook 2025
As the over-inventory situation continues to improve, consumers are expecting new products, and Giant Group believes that after the under-expectation performance in 2024 Q4, the retailer will see profit recovery in 2025.

Image courtesy Giant Manufacturing Co., Ltd.