TAICHUNG, Taiwan (BRAIN) — Giant Group's revenue was up 12.5% last year, to NT$92.04 billion ($2.99 billion) up from NT$81.8 billion in 2021. But group net income before taxes was flat compared to 2021 due to increased material and labor costs and a higher mix of OE (vs. branded) business. The manufacturer's net income after tax was down 1.5% to NT$5.84 billion. Earnings per share were NT$15.51 and the company's board approved a cash dividend of NT$7.8 per share.
"At present, the balance of the supply and demand of the bicycle market has yet to be normalized. The demand for low- to mid-end products has cooled down, but the demands for high-end and e-bikes remain strong," the company said.
Giant said inventory is high for low and mid-priced components, but high-end components are still in short supply.
The company said it took a "corrective mechanism" to reduce inventory starting in the second half of 2022 but because that was during the off-season, inventory reduction is still slow. It said short-term revenue and earnings performance will be affected by the inventory issues and the economic outlook.
"However, in the mid to long term, e-bike demand remains solid and cycling is still popular, which will continue to support the demand for high-end bicycles," the company said.
