Giant Group reported a 4.9 per cent increase in revenue for the first quarter of 2025, buoyed by a rebound in OEM (original equipment manufacturer) orders and a strong demand in the Chinese market, but the Taiwanese company’s April revenue — 17 per cent down year-on-year — indicates volatile times in the bike industry.
Giant, the world’s largest bike manufacturer, generated NT$16.85 billion (around £420 million) in Q1, up from NT$16.06 billion (around £400 million) in the same quarter last year. But its operating profit dropped 21.7 per cent to NT$0.42 billion, while net profit after tax fell 29.3 per cent to NT$0.37 billion. Earnings per share stood at NT$0.94.
In a statement, Giant said that sales of its own-branded bikes were “relatively moderate” compared to the same period in 2024, when the Chinese domestic market experienced a spike in demand. That growth has since eased, though the company said it expects stronger performance during the upcoming peak season.
“Cycling remains popular in China, and with demand in the Giant Group US and Europe markets gradually recovering, the upcoming peak season is expected to drive stronger sales in Q2 and Q3,” it said.
But preliminary filings with the Taipei stock exchange signalled trouble ahead. In April, Giant’s group revenues fell to NT$5.73 billion — a 17 per cent drop compared to April 2024, reports Bicycle Retailer.
“Despite ongoing uncertainties related to global tariffs, trade tensions, and exchange rate fluctuations, Giant Group has responded with caution and resilience,” the company said.
“Leveraging its well-established global manufacturing network and strategic flexibility, the Group continues to optimise production across regions, mitigate external risks, and seize emerging opportunities.”
The aforementioned trade tensions were met with some relief last month when the Trump administration in the United States temporarily suspended a new wave of tariffs — including on imports from Taiwan, Cambodia, and Vietnam — that would have affected much of the global bike supply chain.
While the current 90-day reprieve offers short-term relief, Giant has warned that any return to high tariffs would force it to pass costs on to consumers. The brand described the US administration’s economic agenda as “absolutely not positive” for the cycling industry.
Meanwhile, industry lobby group PeopleForBikes’ Matt Moore also warned that higher import costs as a result of the tariffs could force many companies either into insolvency or into mergers with rivals.
“The mood in the industry is fairly grim because we are facing a potentially existential threat,” Moore told the Financial Times.
“Companies with better access to capital and operational advantages will raise prices to cover costs and preserve margins. Companies that cannot do that may succumb to this new trade environment.”
The Q1 earnings follow a difficult 2024 for Giant, when profits plunged by 62.8 per cent year-on-year. Although sales were down just 7.4 per cent compared to 2023 and remained above pre-pandemic levels, a combination of aggressive discounting and unsold inventory put significant pressure on the company’s margins. Giant made a provision of NT$1.9 billion (£44.4 million) for inventory losses last year.
In a March statement, the company struck a cautiously optimistic tone, noting that “the over-inventory situation continues to improve, consumers are demanding new fresh products,” and predicting a “profit recovery in 2025.”
Those challenges have been widespread across the industry. Shimano reported a 17 per cent drop in cycling operating income in 2024, citing persistently high inventories, while Accell Group — owner of brands including Lapierre, Raleigh and Ghost — posted a £325 million loss and said 2024 had been a “challenging year” marked by a focus on “normalising stock levels.”
