Merida held its Annual Shareholders’ Meeting on June 25, 2025, and approved the 2024 earnings distribution proposal. Despite posting a net loss for the year due to non-operating factors, the company resolved to distribute a cash dividend of NT$4.0 per share, reflecting confidence in the long-term prospects of the bicycle market, supported by steady growth in its core business.

In 2024, Merida’s gross margin from operations remained stable, and revenue returned to a growth track, reaching NT$29.6 billion – an increase of 8.7% compared to the previous year. As market demand gradually recovered, operating profit from core business amounted to NT$3.0 billion. However, the company recorded non-operating losses stemming from the recognition of deferred income tax asset impairment at its equity-method investees, as well as impairment losses on retailers goodwill. These non-operating losses outweighed the profits from core operations, resulting in a consolidated pre-tax loss of NT$732.7 million and a post-tax loss of NT$766.2 million, or NT$2.34 per share. Nonetheless, since these non-operating losses did not impact cash flow and given the stable operational performance, the company decided to proceed with the cash dividend distribution of NT$4.0 per share.

Merida Further Notes:

Signs of Growth in Europe and the US and inventory normalizing

Over the past year, the European and U.S. markets have remained in destocking phase and slow on sales. However, as the markets go into 2025 sales season, Merida’s sales in many European markets are seeing resumed growth. Despite uncertainties around U.S. tariff policies, new bicycle models are selling well. Overall, the gradual recovery in Europe and the US and the continued clearing of inventory are expected to support new demand momentum going forward.

Growth in Taiwan Plants, Improved Result of Investees, Cautious Outlook for China

Merida’s Taiwan production facilities have benefited from growing demand in the European and U.S. markets, leading to an increase in new orders. Most of Merida’s subsidiaries are outperforming last year’s results, with the first quarter turning profitable compared to a loss in the same period last year. On the other hand, the Chinese market saw a significant decline in road bike sales, impacting overall performance. The company will continue to manage inventory closely and adapt its market strategies with flexibility in response to evolving conditions.