Giant, the Taiwanese bike manufacturer has reported a slump in profits amid "weak demand" from European and US markets.
The company, which is the world's largest bike manufacturer, reported a pre-tax profit of £38.1million ($47.8million) for the third quarter of 2023, which marks a fall of 49% compared to the same period last year.
A press release issued by the company shared by the Taiwanese Stock Exchange stated that "high inventories within the distribution network" contributed to the decline in sales along with the weak demand.
The company also revealed that sales in the first nine months of 2023 were down 12.4% on 2022.
"The weak demand from the US and Europe markets on the entry to mid-level products and the high inventories within the distribution network resulted in the decline in sales," read the statement.
"This year inventory reductions in both the US and Europe markets were slower than expected which affected sales performance for Giant's OB sales in both the US and Europe markets for the first 3 quarters."
Giant noted that it has also experienced a "slowdown in consumer demand" in the e-bike sector, which had made up a third of all sales during the year. However, sales in China have been up by 70%, almost "compensating" for the drop in sales in Europe and the USA.
"Short term market outlook, the bicycle industry would continue to face challenges with inventory reduction as well as the business risks arise from the global economy," the statement continued.
"However, demand for performance level products in the US and Europe remain strong and the cycling trend in China will continue to support sales growth."
Merida, Taiwan's second-largest bike manufacturer, also reported a sales slump through the first three quarters of 2023. The company made sales of £570million through the first nine months of the year, down 14.6% on the same period in 2022 as pre-tax profit fell by 25.5%.
The reports from Giant and Merida echo news from across the bike industry in 2023, with downturns across the industry reported following the COVID-19 pandemic and lockdowns.
Several distributors, including British companies Moore Large and Fli Distribution, have collapsed this year, while Wiggle Chain Reaction entered administration in October
