Giant Group BOD today (Mar. 14) acknowledged Group’s 2024 financial report. Group consolidated sales were at NT$71.28Billion, an annual decline of 7.4%. Own brands in the US and Europe markets continued to be impacted by the reduction in demand. In terms of gross margin performance, due to the increase of inventory provision losses as well as more aggressive discounts, an inventory loss provision of NT$1.9Billion has been posted based on Group financial policy, resulting total group gross margin reduced to 19% comparing to 22.1% for 2023. If to exclude the impact of such provision, gross margin rate would return to 21.7%.  Due to the decline in revenue scale, although operating expense was lower than 2023, OPEX rate still up to 16.4%, higher than 15.9% in 2023, resulting a decline of 60% in operating profit. Gant Group net profit after tax came to NT$1.26Billion, an annual decline of 62.8%, EPS of NT$3.22. The BOD has approved a cash dividend NT$2.2 per share and the consolidated financial report will be approved in the AGM on 23^rd June.

In the fourth quarter of 2024, Group consolidated sales reached NT$13.59Bilion, a decline of 8.5% compared to 2023.  Due to the heavy discounts in the US and Europe as well as the soft sales performance in China, in addition, with the increase in inventory provision expenses leading the Group gross margin to 13.5%. If exclude inventory provision expenses, Group gross margin would increase to 18%. Due to the greater decline in gross profit compared to the decrease in operating expenses, an operating loss of NT$1.04 billion and a net loss before tax of NT$920 million were incurred in the fourth quarter. The income tax benefit resulting from the quarterly loss amounted to NT$37 million, leading to a net loss after tax of NT$910 million.

Outlook for 2025, as the over-inventory situation continues to improve, consumers are demanding new fresh products, it is Giant Group’s belief that after the under-expectation performance in 2024 Q4, will see profit recovery in 2025.