Giant Manufacturing Co. swung to a quarterly loss in the fourth quarter, dragging down its full-year 2024 profit by 63% as global bicycle demand remained sluggish.
The Taiwanese bike maker reported a fourth-quarter net loss of NT$907 million (US$28.3 million), or NT$2.32 per share. This pushed full-year profit down to NT$1.26 billion, with earnings per share of NT$3.22, the company said Thursday.
Despite the weak performance, Giant’s board approved a cash dividend of NT$2.2 per share, representing a 68% payout ratio and a yield of about 1.4% based on Wednesday’s closing price.
Revenue for 2024 fell 7.4% to NT$71.28 billion, while gross margin dropped to 19% from 22.1% a year earlier as the company took NT$1.9 billion in inventory writedowns amid aging stock and increased sales discounts.
Giant blamed its poor performance on multiple factors, including China’s crackdown on nighttime cycling and sluggish sales recovery in Europe and America. The company expects gradual improvement in 2025 as inventory levels normalize and new products launch at the upcoming Taipei Cycle Show on March 26.
Rival Merida Bikes also reported fourth-quarter losses, citing deferred tax asset impairments and goodwill writedowns that pushed it to a full-year loss of NT$699 million.
