Giant has revealed in its first quarter statement that e-bikes now make up nearing a third of sales, with revenues up 55% on higher ticket sell through.
The European market has been cited as the main growth driver for Giant e-bikes, with the US market also continuing to grow alongside. Factoring in that unit prices on pedal assisted bikes are higher and gross profit margins larger than those of ordinary bicycles, Giant was pleased with the momentum tilting in this direction. In the first quarter the group’s own brand e-bike revenue increased by 108% over the same period last year. After adding OE e-bike, the overall e-bike accounted for 30% of the group’s revenue.
The quarter, as has been the case with Dorel Sports and Leatt, among others, was a record for the group. The group’s revenue was NT$20.62 billion, an increase of 54.8% over the same period last year. Strong market demand also increased capacity utilisation, resulting in gross profit margin rising to 24.4%, and net profit after tax rose 170% over the same period last year, reaching NT$1.70 billion.
In terms of private label sales, based on the original currency calculation, Giant’s European and North American markets have grown significantly by 70%; Giant’s domestic sales in China have also grown by 90%.
Forecasting the road ahead, Giant is hopeful that the rollout globally of the Covid-19 vaccine will see people keen to get out on bikes after over a year of restrictions. Inventory across Europe and the United States is described as “low”, but Giant expressed that it will leverage “global sourcing and manufacturing advantages to increase output in order to quickly meet market and consumer needs.” As a result the group is hopeful of yet further revenue increases.
Profitability, as with all in the industry, may be subject to fluctuations in raw material costs, rising transportation costs and the decline of the US Dollar, according to the statement.