Giant Group’s profits fell 44 percent in the first half due to promotions to clear inventories in Europe and North America. Consolidated revenue came in at NT(New Taiwan)$42.6 billion ($1.34 bn), a decline of 5.4 percent year over year. Due to the efforts to reduce inventories in those regions, the gross margin rate in the half decreased to 21.3 percent, returning to the level reached before the pandemic.
Net profit before tax came in at NT$3.35 billion, a decline of 32.9 percent year-over-year due to lower gross margin, less FX gain, and higher interest expenses in non-operating expenses.
Net profit after tax came in at NT$2.02 million, a decline of 44.3 percent year-over-year. First-half tax expenses increased due to the increase in undistributed earnings and less tax benefits.
Due to strong sales in the China market, second-quarter consolidated revenue came in at NT$22.46 billion, slightly down 1.2 percent year-over-year. The gross margin rate decreased to 20.8 percent due to sales discounts and higher inventory provisions. The favorable currency offset the higher interest expenses; NIBT (net income before taxes) came in at NT$1.82 billion, a decline of 23.8 percent year-over-year. NIAT (net income after taxes) came in at NT$1.18 billion, a decline of 34.4 percent.
Looking at Giant Group’s brand performance in the first half based on local currency, China’s domestic sales had the best performance. A growing interest in cycling across the country drove demand for mid-to-performance level bike products, leading to a first-half sales increase of 70 percent in China for the Giant brand.
Higher inventories in entry to mid-level products affected Giant Europe and U.S. sales, declining 12 percent and 44 percent, respectively.
First-half e-bike sales supplied 35 percent of company revenues in the half, up 6 percent from the year prior. “With innovation of technology and diversity of products development, e-cargo and e-mobility will create new trends and expand cycling population to drive e-bike growth momentum,” the company said in a release.
Beyond Giant, the company’s other bike brands include Liv, Momentum and Cadex.
Photo courtesy Giant
