Bicycle Makers Giant and Merida Report Record High Revenues in 2014
2015/02/12 | By Quincy Liang
Giant, reportedly the world's largest bicycle maker, had consolidated revenue of NT$4.48 billion (US$149.4 million), up about 19 percent year-on-year (YoY), with 2014 registered group consolidated revenue of NT$60.22 billion (US$2 billion), up 10.9 percent from the previous year to set a record high in its 43 year history.
Merida reported 2014 consolidated revenue of NT$27.23 billion (US$907.7 million), up 7.44 percent YoY, having shipped 2.39 million bicycles, a 1.63 percent YoY increase. In addition, the average selling prices (ASP) of Merida bikes increased by more than 5 percent last year.
Institutional investors say both Giant and Merida hit record high revenues in 2014. In the first three quarters, Giant's accumulated earnings per share (EPS) reached NT$8.18 (US$0.27), with Merida's being NT$8.1 (US$0.27), and both companies' 2014 EPS expected to hit new records again.
Tony Lo, Giant's president, expressed cautious optimism towards the 2015 global bicycle market, and anticipates his company to continue enjoying revenue growth of 5 percent to 10 percent this year. He added that Giant's major markets include Europe, North America and Asia, with China in the past few years having rapidly become the biggest single market in Asia by accounting for about 50 percent of Giant's total sales in Asia. However, he added, Chinese government's anti-luxury policy and increasingly fierce competition in China have resulted in oversupply.
Lo forecasts Giant's sales in China to increase stably in 2015, but that in Europe and North America are expected to continue to rise robustly. Giant launched the world's first female-friendly bicycle brand, "Liv," in 2014, with its "Momentum" brand, originally exclusive to the Chinese market, to venture onto the international stage in 2015.
Lo said the "Liv" line will start from the Taiwanese market and gradually expand globally to become a major revenue driver, who also said earlier the "Momentum" line had been largely exclusive to the Taiwanese and Chinese markets but will expand into other Asian markets and Europe starting in 2015.
Regarding own-branded sales, Giant said that all overseas subsidiaries enjoyed revenue gains in 2014, except those in Australia, with Giant Europe and Giant U.S. reporting the highest growth rates.
Ike Tseng, Merida's chairman, is also optimistic about the company's continued growth in 2015, as several factors are expected to sustain increasing shipments, including depreciating Japanese yen; additional production capacity at the company's new Chiense factory in Nantong, Jiangsu Province of China etc.