Giant and Dorel Both Announce Record Sales and Profits
In the first round of reporting for publicly listed companies since the Covid impact upon the bike industry came into full effect, sales for both Giant and Dorel were up significantly.
Giant Group’s sales for the second quarter of 2020 (from 1st April to 30th June 2020) were NT$19.7 billion (A$929 million) and its earnings per share were NT$4.06, (A$0.19) a company record high.
The company said strong demand for e-bikes in Europe and factory efficiencies help produce a gross margin of 21.7% and net income of NT$2.15 billion (A$101 million) in its first half, a 24.9% increase over last year.
Giant, which also produces bikes for a variety of other brands, said its own branded products produced double-digit sales increases, especially in the U.S., Europe, and China.
“With the impact of COVID 19, many consumers are turning to bicycles or e-bikes as their choice to commute or as an alternative form of exercise. In addition, governments in many countries are promoting the use of bicycles not only offering subsidies but also investing in building bicycle infrastructures. Giant foresees that the demand for traditional bicycles as well as e-bikes would continue to grow,” the company announced.
The company said all Giant manufacturing facilities are running at their full capacity.
Meanwhile Dorel, the Canadian based owner of many brands including Cannondale, Mongoose, GT and Schwinn, reported an increase in revenues of 19% for the second quarter to A$393 million.
“Clearly we could have sold more bikes had we had them,” said Dorel’s president & CEO, Martin Schwartz.
In an earlier press release Schwartz said, “There was a spike in demand for all types of bicycles, which rose dramatically and was maintained throughout the quarter as consumers sought a healthy escape from weeks of COVID-19 lockdowns. Online sales were particularly strong with purchasing activities shifting to e-commerce at the height of the pandemic. Sales were limited by a lack of supply of certain models despite Asian suppliers re-opening in February.”
Operating profit for Dorell’s Sports Division was A$36.9 million compared to A$13.9 million last year. That’s a year on year increase of 265%.
Most of the above article was previously published in Bicycle Retailer and Industry News