Giant Group reported that consolidated revenue for the first quarter was NT$16.06 billion, a decline of 20.2 percent year-over-year from NT$20.12 billion. The decline more than doubled in the year-ago quarter when sales declined 9.6 percent versus the 2022 Q1 period. 

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

The Taiwan-based manufacturer of bikes, bike parts and components said the sharp sales decline in the period came despite increased bike sales resulting from the recent popularity of cycling in China, as the continuation of inventory reduction in Europe and North America, as well as order adjustments from OEM customers, impacted sales worldwide.

Regarding private brand sales, Giant reported that domestic sales performance in China remained strong in the first quarter, with revenue growing double digits compared with the Q1 period last year. 

The rise of sports and leisure trends in China’s domestic market drove sales of mid- to high-end road cars, with sales volume and prices rising. As new car types launch, revenue growth will continue to rise. 

Although Giant’s U.S. and European company revenues were lower than in the same period last year due to the impact of de-stocking of mid- and low-end products, after the second quarter, as the weather warmed and entered the traditional sales season and the launch of new high-end car models stimulated buying sentiment, the market inventory will sell out quickly, and revenue is expected to gradually improve.

EBike sales in the first quarter (OB+OE) declined due to high inventory in the European market and heavy discounts by major brands, with the revenue share falling to 22 percent. However, short-term inventory factors do not affect the significant sales confidence in the future development of electric bike models.

Net profit before tax (EBIT) was NT$820 million, a decrease of 46.1 percent compared with the Q1 period last year. Net income was NT$520 million, a decrease of 37.8 percent year-over-year, and after-tax earnings per share were NT$1.33.

Image courtesy Giant Group