Merida Industry (9914) Q3 2024 earnings summary

Executive summary

• Revenue for the nine months ended September 30, 2024 was NT$23.83 billion, up 6% year-over-year, with net profit at NT$1.83 billion, down 14% from the prior year.

• Gross margin remained stable at 19%, while operating profit was NT$2.80 billion, nearly flat year-over-year.

• Earnings per share for the nine months were NT$5.89 (basic), compared to NT$6.67 in the same period last year.

• The audit report included a qualified conclusion due to unreviewed financials of certain non-significant subsidiaries, which represented 14% of assets and (7)% of comprehensive income.

Financial highlights

• Sales for Q3 2024 were NT$8.66 billion, up 30% year-over-year; gross profit for Q3 was NT$1.65 billion, up 26%.

• Net profit for Q3 2024 was NT$691 million, down 13% year-over-year.

• Operating expenses for the nine months rose 9% to NT$1.77 billion.

• Net foreign exchange gains for the nine months were NT$160 million, down from NT$255 million last year.

• Share of loss from associates for the nine months was NT$336 million, compared to a profit of NT$75 million last year.

Outlook and guidance

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

• The Group continues to monitor the impact of Pillar Two income tax legislation, which may affect future effective tax rates.