e-Bike sales account for more than 30% of Giant's quarterly earnings
Posted on in Brands & Products News , Cycles News
As reported in CyclingIndustry.news , e-bike sales account for more than 30% of Giant's revenue in the first quarter of 2018.
Like-for-like, Giant's revenues rose 3.2% to $466.5 million, largely driven by the sale of pedal assist cycles.
However, the revenue growth was impacted by new Taiwanese tax rates which saw net takings after tax slump by 50% year-on-year. Net income before tax declined 17% to $19.3 million.
The shift in tax rates saw Giant paying 20% over the prior year's 17%, something which equated to a $4.9 million in lost net after-tax takings.
"If (we) exclude the income tax effect, first-quarter net income after taxes would have declined (only) 22 percent," said the investor relations PR.
In the United States and Japan, first quarter sales were said to be impacted by unseasonal weather. Over in China, the continued ripple effect of bike share remained a burden on the low-end, though Giant has seen progress on higher-ticket lines.
Going forwards, Giant forecasts continued double-digit growth on electric bikes, with the majority of sales predicted to come from Europe and North America.
