Merida Reports Waning Profit
TAICHUNG, Taiwan – Taiwan’s number two bicycle maker, Merida Industry Co., reports a small decline in profit from TWD 3.53 billion (110 million euro) in 2013 to TWD 3.35 billion (100 million euro) in 2014.
While Merida had to step back in profit, revenue was stable at TWD 27.2 billion (820 million euro) last year. The outlook for 2015 is much better, as the bicycle manufacturer expects to grow its revenue by 5 to 10 percent from last year.
JPMorgan Securities Ltd. reported in the Taipei Times that, “A lack of fundamental improvement in the outlook of its Chinese business remains the biggest structural issue facing Merida Industry Co.” Given Merida’s continued weakness in business in China amid intensifying competition with Chinese manufacturers, JPMorgan foresees a 7 percent increase in turnover this year.
Last year Merida officially opened a new Chinese factory with an annual capacity of 2 million units making it the number two premium bike manufacturer in the world.