Giant Group reports first quarter revenue increase of 8%

The Giant Group has reported revenues in the first quarter of NT$22.26 billion ($746 million), Bicycle Retailer & Industry News (BRAIN) has reported, an increase of 8% from the same quarter last year.

Rising material costs, labour and logistics squeezed the company’s gross margin and operating profit, said the report, and a higher mix of OEM work also contributed to a lower margin of 22.9%.

A stronger US dollar value relative to the New Taiwan Dollar helped raise Giant’s net income before federal and state income taxes (NIBT) to NT$2.6 billion, a 4.2% growth year over year. Net income after taxes (NIAT) grew 7.1% to NT$1.82 billion, with earnings per share of NT$4.86.

Giant’s US subsidiary saw growth in e-bike sales, the company said, but in Europe, revenue declined about 10% as supply challenges affected e-bike sales. E-bike sales (both OE and branded) were 26% of total revenue for the group, reported BRAIN.

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Earlier this year, the Giant Group reported 17% sales growth in its 2021 financial report, with the group reaching consolidated sales of NT $81.8 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.

Dorel Industries also recently reported its fourth quarter and 2021 year-end results, with Dorel Sports seeing fourth-quarter revenue increase to $280.7 million, an increase of $15.3 million, or 5.8%, from last year.

Full year revenue was $1.2 billion, up $127.2 million or 12.2% from last year. Fourth quarter operating profit was $2.3 million, compared with $1.9 million last year. For the year, operating profit increased to $98.9 million compared to $52.3 million in 2020.

Dorel Industries completed the sale of its bicycle segment Dorel Sports to Dutch mobility group Pon Holdings in January this year. At closing, Dorel said it received net proceeds from the sale of approximately $735 million, which it will use for payment of a special dividend of $12 per share

Check out BikeBiz’s recent interview with Giant Bicycle Group’s chairwoman Bonnie Tu, dubbed ‘the most powerful woman in cycling’, here.

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