Global Bike Manufacturers are Still Booming

With more bicycle companies than ever now publicly listed and required to post regular financial reports, it’s plain to see that the bike industry boom is showing no signs of slowing up just yet. Despite covid-induced logistical challenges such as factory closures or restrictions and shipping issues, most are increasing their production.


In its financial statement on the first half of 2021, the Shimano Group reported a sales increase of its bicycle component segment of 73.4% from the same period in the previous year. Bicycle components turnover jumped to JPY212,599 million (A$2.62 billion) for the six month period from 1st Jan to 30th June 2021. Profit was up even more strongly, by 152.1% to JPY57,885 million (A$714 million).

Shimano reported that retail sales of bicycles and bicycle-related products remained robust and distributor inventories remained at low levels.

They said that they were, “increasing production in response to continued high demand for the EP-8 e-bike drive system as well as the Deore MTB components and a wide range of existing products overall.”

Based on the current demand trend and increased production levels, Shimano has again upwardly revised its business performance for this year. It now expects to increase its sales by another 9.8% from JPY455,000 million (A$5.6 billion) to JPY500,000 million (A$6.17 billion). In 2020, net sales were JPY378,040 million (A$4.67 billion). Therefore, if their predictions prove correct, Shimano will be growing its sales by A$1.5 billion from 2020 to 2021. It was only a few years ago that Shimano’s annual sales were around A$3 billion per year, so it has quickly doubled in size, a remarkable feat for a 100 year old company


Giant Group set a new second-quarter record for net sales and earnings per share as global demand for its bikes and e-bikes remained strong. Sales of e-bikes, both under its own brand and for its OE customers, accounted for 30% of Giant’s sales in the first half.

Despite supply limitations, a shipping container shortage and unfavourable exchange rates, first-half revenue (1st Jan 2021 to 30th June 2021) grew 27%, to NT$41.99 billion (A$2.05 billion).

Gross margin for the half was 25.2% and net profit after tax was NT$3.55 billion (A$174 million), representing an annual growth in net profit of 65.1%.

“With the uncertainties of COVID-19, bicycles remain as in high demand and inventory on hand at retail still low (at) less than 30 days,” Giant said.

“Due to the limited supply of bicycle components, production rates will be less likely to improve further and increases in global ocean freight, as well as increases in shipping lead time, could bring some impact to both sales and profit growth for the second half of 2021.

“Nevertheless, looking at the mid to long term, the global trend in moving towards green energy and rise in health awareness would continue to support the growth of both regular bike and e-bike riders.

“Giant Group is still optimistic with the long-term opportunities in the global bicycle market and will invest in production capacity expansion by commencing a Vietnam production facility project and increasing automated production to improve production quality so to ensure the Giant Group maintains its leading manufacturing position and fulfils market demand.”

Every Player Wins a Prize!

Here is a summary of other major, publicly listed companies whose activities either solely or significantly comprise bicycles and P&A.

Dorel Sports, whose brands include Cannondale, Schwinn, GT, Mongoose, Caloi and IronHorse, reported bicycle division sales in its second quarter (1st April 2021 to 30th June 2021) up by 11% from US$285.6 million (A$391 million) in 2020 to US$317 million (A$434 million) in 2021. Profits were also up significantly.

“Given the continuing chaotic supply chain environment, we are very pleased with the second-quarter performance of our businesses,” said Dorel’s president and CEO, Martin Schwartz.

“We are reporting substantially improved earnings while dealing with record increases in container freight rates and higher product costs in many categories. Demand for our products remained robust, but we were not able to fully satisfy consumer needs due to inventory shortages from a lack of ocean container availability. Dorel Sports had a remarkable quarter, again achieving record sales and earnings.  Demand for bikes shows no signs of slowing and Cannondale’s models remain extremely popular in all markets.”

Vista Outdoor’s Action Sports Division, which includes Giro, Bell and Blackburn saw a 26% increase in revenues in the most recent quarter. The division’s sales were US$92.1 million (A$126 million), up from US$72.9 million (A$99.8 million) in the same period last year.

Vista Outdoor’s Outdoor Recreation division contains another brand of interest to the bike industry: CamelBak. That division saw a 49% sales increase, from US$72 million (A$98.6 million) in the period last year to US$107 million A$146 million) this year.

Shoe closure company BOA Technology saw sales increase 58% for the first half, year on year.

Go-Pro reported an 86% increase in revenue for the second quarter, year on year.

Garmin was up 53% for the same period.

MIPS, the Swedish helmet retention system company which licences its system to major helmet brands worldwide, reported a 115% growth in second quarter sales, year on year.

Also based in Sweden, car rack maker Thule recorded a 58% growth in sales for the same period.

Only the Accel Group (which includes Raleigh, Haibike, Ghost, Lapierre and many other bike brands) recorded a modest growth of 3.3%, saying that it could have done better if not for supply and logistical issues.

Even then, net profit was up 54.3% for the first half, compared to 2020.

Most information for this article was previously published in Bike Europe and Bicycle Retailer and Industry News.

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