Merida sees strong growth in Q1 profit.
Merida’s Board of Directors meeting on May 10th has approved the Q1 financial. The Q1 sales amount was NT$5.57 billion, NT$187 million, or 3.25%, down compared with a year earlier. Though the sales was lower, Merida sees strong growth on profit due to higher average price and profit from robust e-bike sales, better return from oversea investments, and stable currency exchange rates. The Q1 profit before tax was NT$635.4 million, around 50% higher than the year before. The profit after tax was NT$478.9 million, and the EPS was NT$1.6.
The sales in China market has continued to improve from earlier years since last August.
The production and shipment in 2018 for traditional bikes had been smooth and ahead of schedule and caused the 2019 Q1 production to be less than the previous year. E-bike output in 2019 Q1 was similar to the year before. The average price was up again and E-bike sales had already amounted to 31% of the total revenue in Merida group. Therefore the profit is up as well.
Merida has started shipping new models in April. The demand is high with the improving sales in China as well as the strong sales of high end bikes and E-Bikes in the global markets. The delivery situation of the key components like motors has also been improving since March, so Merida is increasing the monthly capacity and getting ready for the growing sales in the coming peak season.