With strong ongoing global demand for bicycles and e-bikes, Giant Manufacturing reported that its production facilities are fully loaded with orders. However, a lack of components affected the production in the third quarter, leading to an increase in consolidated sales of only 2.5 percent to 19.95 billion Taiwan dollars (€619.0m-$715.0m) for the period. Net profit decreased by 3.6 percent to TWD 1.28 billion (€39.7m-$45.9m), due also to rising component and logistics costs.
For the first three quarters of 2021, the company reported record sales of 61.94 billion Taiwan dollars (€1.92 bn-$2.2bn), up 18 percent from the first nine months of last year. Net profit increased by 32.9 percent to TWD 4.83 billion (€149.8m-$173.0m). Sales of e-bikes jumped by 37 percent. Together, the Giant group’s own-brand e-bike business and the OEM e-bike business now account for 31 percent of the group’s total revenues.
For its own brands - Cadex, Giant, Liv, Momentum - the group recorded double-digit sales growth in local currencies in the first three quarters of 2021 in both Europe and North America. Sales rose in China by about 10 percent.
Looking ahead to the fourth quarter of 2021, Giant said the retailers’ overall inventory levels remain low in both Europe and North America. Even as these markets enter the off-season, retailers continue to stock up on products as they continue to see strong demand. With current component supply and ocean logistics challenges impacting product deliveries to markets, Giant said it will continue to leverage its sourcing and production advantages to maintain overall production and meet market demand.
