Merida Industry (9914) Q4 2024 earnings summary

Executive summary

• Revenue declined 9% year-over-year to NT$18.2 billion, with a net loss of NT$699 million in 2024 versus a net profit of NT$1.69 billion in 2023.

• Gross margin remained stable at 12%, but operating profit dropped 21% year-over-year to NT$1.58 billion.

• Significant losses from associates (NT$4.05 billion) drove the net loss, with equity-method investments accounting for 49% of total assets.

• Export sales of e-bikes were a key revenue driver and audit focus.

Financial highlights

• Sales: NT$18,215,546 thousand in 2024, down from NT$20,008,786 thousand in 2023.

• Net loss: NT$699,103 thousand in 2024, compared to net profit of NT$1,691,823 thousand in 2023.

• EPS: Basic and diluted loss per share of NT$2.34 in 2024, versus EPS of NT$5.66 (basic) and NT$5.64 (diluted) in 2023.

• Operating expenses decreased to NT$618,931 thousand from NT$711,087 thousand year-over-year.

• Cash at year-end: NT$2,294,519 thousand, up from NT$1,970,162 thousand.

Outlook and guidance

• The board proposed a cash dividend of NT$4 per share for 2024, pending shareholder approval.

• No significant post-reporting period events or disasters were noted.