Text & Photos: Wheel Giant

Merida released its financial results for fiscal year 2024, reporting a loss of NT$2.34 per share. Despite this setback, the company has decided to distribute a cash dividend of NT$4.0 per share from its retained earnings.

The company held its Board of Directors meeting on March 13, 2025, to approve the financial statements. Merida’s core business saw a stable gross margin, with revenue reaching NT$29.63 billion, an 8.7% increase compared to the previous year. Operating profit stood at NT$3.03 billion. However, Merida experienced significant non-operating losses due to one-time impairments, including a deferred income tax asset write-down and goodwill impairments related to its retail operations. These non-operating losses exceeded operating profits, resulting in a consolidated pre-tax loss of NT$732.66 million and a post-tax loss of NT$766.17 million.

Although the company faced a net loss, it remains confident in the outlook for the bicycle market, particularly in light of strong growth in China. Since the non-operating losses did not involve cash outflows, Merida has opted to reward its shareholders with a cash dividend. The dividend proposal is expected to be presented for approval at the Annual Shareholder Meeting on June 25, 2025.

In 2024, Merida’s performance in the U.S. and European markets was challenged by a destocking phase, with high inventory levels and increased pricing pressure. In contrast, Merida saw substantial sales growth in the Chinese bicycle market, helping offset declines in other regions. While the company’s equity-method investee also showed improvement, it faced non-operating losses due to impairments, contributing to the overall loss for the year.

Merida emphasized that nearly half of the non-operating losses were related to non-cash adjustments, such as the write-down of deferred income tax assets. These adjustments do not impact the company's long-term growth prospects. The investee company remains financially healthy, with stable revenues, growing margins, and a solid financial position, making it well-positioned for future growth.

Looking ahead to 2025, Merida sees signs of recovery in both the U.S. and European markets. The company’s revenues for January and February showed significant growth, up 59% and 38%, respectively, fueling optimism for continued progress this year. With strong operational performance and a promising market outlook, Merida remains confident in the long-term potential of the bicycle industry.

Merida GM Vansen Tseng.

Merida's management team.