In the face of intensifying global inflation, the raging Russia-Ukraine war, and shortages of high-end parts and components, the Giant Group nevertheless managed to achieve same-period growth in 2022 with consolidated revenue of NT$70.1 billion during Q1-Q3. (14.4% growth). However, due to steadily rising OE sales, coupled with the rising cost of materials, logistics, and manpower, compared with the same period of last year, Giant's gross profit ratio dropped, which has affected operating profit. But as a silver lining to the strengthening US dollar, exchange profit boosted Giant's pre-tax net profit by 9.9% and its after-tax profit by 16.5% compared with 2021. As a result, Giant enjoyed after-tax profit of NT$5.63 billion during the first three quarters of 2022, and earnings per share reached NT$15.01, which was a new high.
Due to smooth OE shipments during Q3 and the continued booming sales in the China market, the Giant Group had consolidated revenue of NT$25.8 billion during that quarter alone, and this was equivalent to a 29.7% annual growth rate, which also set a new single-quarter revenue record. Because of the depreciation of the NT dollar and other favorable factors, Q3 after-tax net profit surged by 56.6% compared with the same period of last year, reaching NT$2.01 billion, with profit per share of NT$5.35.
Because of last year's high baseline period and high-end bicycle and e-bike parts supply shortages, the Giant Group's branded sales did not live up to expectations during the first three quarters. In addition, rising levels of low-end bikes in the United States, and lack of mid-/high-end bikes to sell, Giant USA experienced a sales drop of more than 10% during the first three quarters, and Giant Europe's revenue also dropped, but by a smaller amount. In contrast, Giant China had over 30% sales growth. The Giant Group is currently betting on continued growth in e-bike sales. If supply problem improve further, the Group's revenue will keep increasing this year, since e-bike sales (OB+OE) account for close to 30% of the Group's total revenue.
▲Giant Group President Bonnie Tu(left) and CEO Young Liu(right).
