You are here

Giant Group reports strong third quarter as COVID-19 drives global cycling sales

Published November 9, 2020

TAICHUNG, Taiwan (BRAIN) – Giant Group’s third-quarter revenue jumped 14.6 percent over last year’s to NT$19.47 billion ($681.4 million) thanks to a surge in worldwide demand for bicycles and e-bikes.

Strong demand and increased manufacturing efficiencies also helped offset currency rate fluctuations and boosted the quarter’s gross margins to 23.8%. Overall, the company’s earnings per share in the third quarter jumped 45% to NT$3.95.

Consolidated revenue for the first three quarters of 2020 also delivered strong growth with revenue up 10% year-over-year to NT$52.5 billion. And after-tax profits grew year-over-year at a rate of 10.1% or NT$3.63 billion.

Giant’s board of directors, in a press release, said the surge in demand is primarily related to COVID-19 as consumers in its key markets continue to socially distance, turn to e-bikes for commuting and general cycling for fitness and health. 

The board also credited higher sales of e-bikes in Europe and the U.S. for helping drive revenue throughout the year. “Globally, all Giant sales companies have delivered strong performance for the first three quarters — U.S., Europe, China, Japan, and South Korea have delivered strong double-digit revenue growth in (that country’s) original currency,” the board said.

Fostering more demand have been efforts, primarily in European nations, to offer purchase incentives for e-bikes and a stronger investment in cycling infrastructure.

“E-bikes are one of the most important growth drivers for Giant Group and currently represent 27% of the total Group’s revenue. E-bikes sales price and margins are much higher than traditional bikes,” the company said.

Giant will continue to expand its e-bike production, its portfolio of models and new technologies to grow its market share, the company said.

Topics associated with this article: Earnings/Financial Reports

Join the Conversation