Giant Manufacturing Co. Ltd, which is widely regarded as the largest bicycle manufacturer in the world, reported higher margins and profits on flat sales in 2013.
The Taiwanese company reported sales rose just 0.5 percent in 2013 to NT$54.4 billion ($1.8bn), compared with NT$54.1 billion in 2012. While sales of bikes sold under Giant owned brands were flat in the United States and Europe, they increased 26 percent in China, 11 percent in Taiwan and 17 percent in South Korea. The company, which has substantial OEM sales, manufactured 6.3 million bikes at seven plants during the year.
Gross margin reached 21.9 percent of operating revenue, compared with 20.5 percent in 2012. Operating expenses, including selling, general and administrative and research and development, increased 5.3 percent to NT$7.53 billion ($253mm), or 13.8 percent of operating revenue, up 60 basis points from the year earlier period. Due to favourable exchange rates, net income before taxes reached NT$4.5billion ($151mm) and net income after taxes reached NT$3.5billion ($118mm), or NT$9.34 (31 cents) per share, up 16.7 percent from 2012’s NT$3billion.
The company manufactured 6.3 million bicycles at its seven production facilities.
