Merida reports 90.28% increase in net income for H1

Merida has kicked off 2019 with a significant uptick in revenues, largely attributed to electric bicycle production.

Reporting a 90.28% increase in net income, rising to US$33.48 million in H1, the results saw earnings per share near double from NT$1.84 to NT$3.5. Gross margin increased by 1.31 to 13.33%, while operating margin grew 1.2%.

Such a gain was attributed to there being “no such thing” as a low season for electric bikes at the present time. A PR spokesperson told the Taipei Times: “Our production lines for electric bikes ran at full capacity in the first half and they are expected to remain fully loaded through the first quarter of next year. As inventories are still low there will be no low seasons for electric bikes this year.”

Sales for pedal-assisted bikes reached 116,000 units and 18.86% of total shipments in the first half, with the U.S. and Europe largely the beneficiaries. Last month alone 22,113 electric bikes left the factory set for overseas territories.

This time last year Merida described hitting the bottom with shipments into China and as such forecasts this year are to return to growth; 10% is the aim and thus far the firm is 6% up like-for-like.

Merida’s closest competitor Giant also saw positive numbers tied to electric bike uptick; recording a 5.3% rise in revenues for the first half. Giant reported selling 290,000 e-Bikes in the first six months, a 57% spike year-on-year.