Two of the cycling world’s best known manufacturers have released their latest financial reports showing strong sales and profits over recent months.
On 19th March Giant announced that its sales for 2018 grew 9.1% over 2017 to NT60.24 billion (A$2.83 billion) with net profit up 46.3% to A$203 million. Giant said that strong ebike demand and favourable exchange rates boosted their growth despite a 20% decline in their sales to China.
In August 2019 Giant announced that revenue, margins and profit had all grown further for the first six months of 2019. Once again, Giant credited booming ebike sales, having manufactured 290,000 ebikes during the first six months of 2019 accounting for 28% of total sales and a 40% growth in sales value compared to the same period the previous year. Giant said that it is expecting continued sales growth for the second half of 2019.
Giant’s stock has doubled in value over in recent times, rising 50% between March and July 2019 alone to a market capitalisation of approximately A$3 billion.
Meanwhile Shimano has seen sales in its bicycle division grow to 144 billion yen (A$2.0 billion) for the first six months of 2019 with ‘operating income’ (net profit) of 29 billion yen (A$40 million). It its explanatory notes, Shimano sad that Europe had been their most favourable market during this period.