Giant Records Double-Digit growth in Europe Driven by E-Bikes
TAICHUNG, Taiwan – Thanks to a strong e-bike demand as well as favourable exchange rates, Giant Manufacturing Co. Ltd. saw its net income grow by 31.8 percent in the first half of this year. Consolidated group revenue increased by 7.9 percent up to a total of TWD 29.17 billion (€ 830.2 million).
Giant’s net income after taxes (NIAT) dropped compared to the first six months of 2017. That’s caused by a 20 percent income tax rise. NIAT dropped by 10 percent to TWD 1.83b (€ 52.2m). “Excluding the taxation impact, NIAT for the first half of 2018 would be up 8 percent compared to 2017”, is noted by Giant.
Eyeing the overall business of Taiwan’s biggest bicycle maker, Europe outperformed all other regions in which Giant is active. The company recorded double-digit growth in Europe in the first half of 2018. Sales were mainly driven by e-bikes.
Giant’s U.S. market performance was flat in the first half of this year – but it saw growing demand for e-bikes. Giant notes in its financial statement “With new model year products introduced in the second half of this year, we expect to create more demand”.
Sales for Giant in China remained soft. Nevertheless, the company notes that it was encouraging to see this year’s carbon bike sales increase: “This shows that Giant’s strategy to transform China’s bicycle market is paying off.”
Full year outlook
In its outlook for the whole of 2018 the company states “With a strong growing demand for e-bikes, Giant possesses a competitive advantage with its well-established e-bike supply chain and is making pace to increase distribution in the global market. Giant’s Taiwan production facility is well positioned as the development and production base for high-end e-bikes that offer innovative and value added products demanded by both European and North America markets. Giant China e-bike production facility is focusing on producing entry to mid-level e-bikes serving China domestic, Japan, Taiwan and other Asian markets. Giant’s Netherlands production facility is situated at the heart of the e-bike market, offering customers with innovative products and on time after sales service to the European markets. Giant’s new Hungary production facility will produce both regular bicycles as well as e-bikes offer greater responsiveness to market demand.”
Focus on short lead times
Nevertheless, looking forward into the second half of 2018, Giant is also cautious “Protectionism has brought uncertainties to the economy and there are still many challenges within the global market. Giant will continue to take leverage of its Asia and European production facilities, focusing on short supply lead times and global positioning to maintain its growth opportunities in this challenging market.”