Merida Industry (9914) Q2 2024 earnings summary

Executive summary

• Revenue for the six months ended June 30, 2024 was NT$15.17 billion, down 4% year-over-year; net profit attributable to owners was NT$1.07 billion, down 13% year-over-year.

• Gross margin for the six months was 20%, up from 18% in the prior year period, reflecting improved cost control.

• Earnings per share for the six months were NT$3.58 basic and NT$3.57 diluted, compared to NT$4.14 and NT$4.12, respectively, in the prior year.

• The Group's financial statements received a qualified review opinion due to unreviewed non-significant subsidiaries, which represented 15% of total assets.

Financial highlights

• Six-month revenue decreased to NT$15.17 billion from NT$15.85 billion year-over-year.

• Net profit for the period was NT$1.14 billion, down from NT$1.34 billion year-over-year.

• Gross profit increased to NT$3.02 billion (20% margin) from NT$2.82 billion (18% margin) year-over-year.

• Operating income for the six months was NT$1.66 billion, down from NT$1.95 billion year-over-year.

• Total comprehensive income for the six months was NT$2.14 billion, up from NT$1.67 billion year-over-year, mainly due to foreign currency translation gains.

Outlook and guidance

• The Group is assessing the impact of new IFRS standards effective in 2025 and 2026, including IFRS 18 and amendments to IFRS 9 and 7.

• Management continues to monitor the impact of Pillar Two global minimum tax legislation, with ongoing assessment of future financial effects.