What are the interesting developments in the industry this week, and what are the new trends? Please see the weekly bicycle industry information report every Friday.
Giant and Merida released their first quarter earnings
Taiwanese bicycle maker Giant Group and Merida Industry Co. Ltd. each released first-quarter earnings reports this month.
Giant first-quarter total operating income fell 9.6% year-on-year to NT$20.1 billion from NT$22.3 billion last year. Giant had a total profit of NT$883 million in the first quarter, down from NT$1.91 billion last year. Earnings per share fell from NT$4.83 last year to NT$2.13 this year.
Giant said the decline in revenue was "due to the impact of inventory reductions in Europe and North America, coupled with a higher base compared to last year." Sales in China performed best in the first quarter, as Chinese consumers spent more on cycling products following the pandemic."
Giant said its sales in Europe and the U.S. were impacted by higher inventories of low- and mid-range products, resulting in lower volumes, with ebike sales accounting for 32 percent of total sales in the quarter, while the ebike market is still growing, which will further improve average selling prices and profits. Consumer interest in ebike, eco-friendly and fitness products will continue to drive sales of mid-range to high-performance products, so Giant remains optimistic about the mid- to long-term growth of the bicycle industry.
Merida's sales rose 2.8% in the first quarter, from NT$8.2 billion last year to NT$8.4 billion this year. Profit for the quarter fell sharply compared to the same period in 2022, falling to NT$627.5 million from NT$1.2 billion in the same period last year. Earnings per share fell from NT$4.04 last year to NT$1.89 this year.
Brompton received a $24 million investment
British folding bike brand Brompton received a £19 million investment from BGF, a UK-based equity capital investment firm.
BGF said the investment allowed it to acquire a minority stake in Brompton in support of its goal of "creating urban freedom for a happier life." BGF investor Dana Speyed said a shared vision for sustainable development for people and the planet made the partnership a reality. We look forward to supporting the business as it continues to expand into new markets and invest in new technologies and manufacturing capabilities to meet the growing demand for its revolutionary bike offerings."
Since 1975, Brompton has been owned by founder Andrew Ritchie and CEO Will Butler Adams,
Butler Adams said Brompton's 20% annual growth is funded by our reinvestment of profits. Brompton exports 80% of its bikes to 46 countries and produced its 1 millionth bike in November 2022. But that's not enough, we need to move faster. We are feeling the effects of climate change, and the biggest carbon emissions come from our cities, where the majority of the world's population now lives.
Shimano PRO Vibe aluminum stem is recalled in North America due to cracking issues
Shimano North America is working with the Consumer Product Safety Commission to recall its PRO Vibe aluminum stems after they found that corrosion could cause cracks to form in the fork clamping area.
Shimano issued a suspension and recall notice for all PRO Vibe aluminum shafts sold from May 2020 onwards. Products affected by the recall can be identified by the protruding silver "V" on the lid and front-mounting bolts.
Two reports of broken poles have been received in the United States, with no injuries reported. About 400 bikes were affected, about 90 of which were sold in Canada. In March, the same product was recalled in Europe.
Consumers should immediately stop riding a bike with a PRO Vibe handlebar stand and take it to the place of purchase or a Shimano authorized retailer for replacement.