The Giant Group has reported sales growth of 17% in its 2021 financial report, with the group reaching consolidated sales of NT $81.8 billion (£2.17 billion).
The surge in bicycle demand continued last year, said the company, and the group’s sales growth was also aided by growing demand for e-bikes in both US and European countries.
“The strong market demand continues to improve capacity utilisation rates within the Giant Group’s production facilities, further the increase in Giant Group’s own brand e-bike sales contribution also pushed Giant Group’s profitability to historic record with 19.8% increase in net profit after tax to NT$5.93billion with EPS at NT$15.80,” said the company.
In Q4 of 2021, the Giant Group said it managed to overcome raw material and container shortages, which enable it to report a quarter consolidated sales of NT$19.9billion, a 13.6% increase compared to the previous year.
However, further increase in raw material cost, logistic expenses, as well as an unfavourable exchange rate impacted the group’s gross margin, said Giant. Fourth quarter net profit after tax came at NT$1.1billion, a decrease of 16.5% compared to last year.
“Looking at 2022, inflation, the conflict between Russia and Ukraine will bring more uncertainties to the overall business environment; further increase in operation costs would also put pressure on profitability,” said the company.
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“However, as the world transitions into a post-pandemic new normal, people will be more health-conscious than ever, continuing to engage with nature outdoors and with each other online through indoor cycling. Hence, Giant Group expects this would continue to support the growth of mid to high cycling products.
“In addition, consensus in environment protection continue to grow across the world, nations are taking more actions in reducing carbon emission, hence creating more cycling-friendly environment to encourage bike commute to solve traffic congestion issues which will increase the cycling population.”
Look out for BikeBiz’s interview with Giant Bicycle Group’s chairwoman Bonnie Tu, dubbed ‘the most powerful woman in cycling’, in the April edition of BikeBiz magazine.