TAICHUNG, Taiwan (BRAIN) — As COVID-19 works its way through the global economy, Giant Group’s first-quarter revenue took a hit as predicted. But as lockdown orders in Europe begin to ease and as China begins a return to normal, second-quarter sales could pick up, the company said.
Giant Group, in a news release, also said that its sales in the U.S. and Korean market were “good” in the first quarter, but offered no specifics on unit sales, revenue or models. Still, sales of e-bikes and traditional bikes, particularly in Europe, were hurt by strict shutdowns in many European countries.
Overall, first-quarter revenue declined 9.3 % to $444.5 million (NT$13.2 billion) year-over-year. Net income before taxes was $27.4 million (NT$820 million), a 16.9 % drop. And net income after taxes dipped 8% to $21.1 million (NT$630 million).
Giant’s first-quarter revenue comes as the company ended 2019 with record revenue of $2.1 billion (NT$63.45 billion). That reflected faster growth in European e-bike sales and a double-digit recovery in the Chinese domestic market.
The spread of coronavirus, however, crippled sales in the first quarter as China began to lock down in January and European countries, particularly Italy, were ravaged by the disease throughout February and March as governments enforced stay-at-home orders.
But the overall outlook for 2020 is improving, the release said, as governments get the virus under better control. “European countries have started to ease the restrictions, which will help with bicycle sales. The pandemic has also brought new opportunities for the cycling industry as consumers are more conscious of their well-being and health, which has increased demand for indoor cycling,” the company said.
However, Giant pointed out that many countries are encouraging its citizens to ride bikes for recreation and for commuting. “This change in consumer behavior would aid bicycle sales in the future,” the company added.
