TAICHUNG, Taiwan - The bicycle industry is starting to gain some traction again after two years of standstill. Taiwan's manufacturers are now starting to report increased earnings for the first quarter of this year. Profit margins remain under pressure, suggesting that OEMs are making significant efforts to revive market activity.
CHANGHUA, Taiwan - For Merida Industry Co. Ltd., the excess inventory situation continues to have an impact on the financial performance. Yesterday the company reported a relatively steadily performance in 2024, with full-year revenue growing by 8.7% to NT$29.63 billion (€ 823 million). The company pointed out that the entire bicycle industry is still in the stage of destocking and inventory impairment. For Merida this means a net loss NT$732.66 million (€20.4 million) before tax which can be attributed to a one-time provision and did not affect cash flow, and it could still be used to offset taxes when profits are made in the future.
TAICHUNG, Taiwan - Any frequent visitor of bicycle industry factories in Taiwan, has seen that a lot of the workers come from countries like Philippines, Vietnam, Thailand or Indonesia. Often the signing in the factories is multi-lingual to facilitate the foreign workers. In a recent publication, LeMonde Diplomatique reports that they have found indicators of forced labour according to the International Labour Organisation (ILO), particularly in the Taiwan bicycle industry.
CHANGHUA, Taiwan - In the first three sales quarters of the current 2024 financial year Taiwan's second-largest bicycle manufacturer Merida Industry Co. Ltd. generated total revenue of TWD 23.8 billion (€695 million). Compared to the first nine months of the previous year, this is a good increase of 5.8% in a persistently difficult and challenging environment.
APELDOORN, the Netherlands - To step up Merida's presence, the Benelux distributor of the Taiwanese manufacturer has expanded into Denmark as the official importer for this country. This strategic move strengthens Merida's foothold in the Scandinavian region, furthering the brand's commitment to delivering high-quality bikes and cycling gear to a wider audience.
CHANGHUA, Taiwan - Merida Industry Co. Ltd. Has enlarged its majority ownership in its German distributor Merida & Centurion Germany GmbH (MCG), which is managed and owned by German industry veteran Wolfgang Renner.
