Giant Group reports 17% year on year sales growth

As part of Giant Group 2021 financial report the bicycle manufacturer has announced consolidated sales growth that returned a total of £2.16 billion (NT$81.8 billion), tracking 17% up on 2020, the previous record year.

The statement also highlights that, “strong market demand continues to improve capacity utilization rates within the Giant group’s production facilities. Further, the increase in Giant group’s own brand E-Bike sales contribution also pushed Giant group’s profitability to historic record with 19.8% increase in net profit after tax.”

Looking into the detail, “In Q4 of 2021 Giant group managed to overcome raw material and container shortage which enable Giant group to report 13.6% increase compared to previous year. However further increase in raw material cost, logistic expenses as well as unfavourable exchange rate impacted group’s gross margin. Fourth quarter net profit after tax (saw) a decreased of 16.5% compare to last year.

Assessing the year ahead, the company highlights, “inflation, (plus) conflict between Russia and Ukraine will bring more uncertainties to the overall business environment; further increase in operation costs would also put pressure on profitability.”

The release concludes with a focus on how, “… the world transitions into a post-pandemic New Normal, (where) people will be more health-conscious than ever, continuing to engage with nature outdoors and with each other online through indoor cycling.”

“Giant Group expects this would continue to support the growth of mid to high cycling products. In addition, consensus in environment protection continue to grow across the world, nations are taking more actions in reducing carbon emission, hence creating more cycling friendly environment to encourage bike commute to solve traffic congestion issues which will increase the cycling population.”

Earlier this year Giant USA had communicated to its retailers that a Direct to Consumer approach was not something it supported, stating “we believe strongly that no one understands a local cycling community more so than your local independent bicycle retailer.”