Electric bike sales propped up Giant’s first quarter financial results, accounting for more than 30% of the manufacturer’s revenue thus far this year.
Like-for-like, Giant’s revenues rose 3.2% to $466.5 million, something that was largely driven by pedal-assist sales.
Unfortunately for Giant, the revenue growth was impacted by new Taiwanese tax rates which saw net takings after tax slump by 50% year-on-year. Net income before tax declined 17% to $19.3 million.
The shift in tax rates saw Giant paying 20% over the prior year’s 17%, something which equated to a $4.9 million in lost net after-tax takings.
“If (we) exclude the income tax effect, first-quarter net income after taxes would have declined (only) 22 percent,” said the investor relations PR.
In the United States and Japan, first quarter sales were said to be impacted by unseasonal weather. Over in China, the continued ripple effect of bike share remained a burden on the low-end, though Giant has seen progress on higher-ticket lines.
Giant forecasts continued double-digit growth on electric bikes, placing particular faith in the performance of sales in Europe and North America.