Giant Bicycles announced on Friday that it will commit to a US$48 million investment in a new manufacturing plant in southern Vietnam, which will come in addition to a now operational expansion in Hungary.
Located just north of Ho Chi Minh, the Binh Duong Province factory will shoot for production by the second half of 2023 and will apparently aim for a one million annual production capacity, primarily for bicycles.
All markets were said to have delivered on expanded bicycle sales with growth north of 20% evident in the USA, Europe and China, while Japan and Korea also delivered standout rises.
Electric bikes will be the point that most interests observers of the bicycle industry and for Gant, the worlds largest bike maker by value, 30% of all sales revenue is now made up wit pedal assisted sales. These are particularly strong in Germany, France and the Netherlands. Encouragingly, the USA is also now taking a sharper sales trajectory. Revenue for the segment in its entirety is up 40% on the same period in 2020.
The investment comes in tandem with the announcement of a record quarter for the business where revenues reached NT$21.4 billion, an 8.5% growth versus the same period in 2020.
More than the revenue growth, Giant managed to enhance its profitability with net takings after tax up by 21.5% to NT$1.85 billion. For shareholders that meant a net profit per share of NT$4.93, also a new record. In consolidated revenue terms the group’s first half rose 27.1% compared with 2020, reaching NT$42.0 billion.
As has been reported unanimously in other financial statements, even large listed businesses cannot dodge the global shortage in supply for components to build bikes; Giant points to this headwind in its forward looking statement. Second half financials are therefore looking more precarious across the board as the initial glow from the ‘bike boom’ hits hurdles.
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