Wed, Jun 12, 2019 - Page 11 News List

Dyaco upbeat for year on sales of home workout gear

By Kwan Shin-han  /  Staff reporter

Fitness equipment maker Dyaco International Inc (岱宇國際), which markets its products under various brands, yesterday gave a positive outlook for this year on the back of increasing sales of home workout equipment and a growing medical rehabilitation equipment business.

“A new version of our Sole-brand fitness equipment has boosted our North American sales since late last year. We expect sales to continue growing as we begin to take orders for European and Chinese markets,” a Dyaco public relations official told the Taipei Times by telephone.

The official, who declined to be named, said that the contribution from medical rehabilitation equipment, including fitness bikes and steppers, would also increase, after the company last year signed a brand licensing agreement with Philips North America LLC and last quarter started selling medical rehabilitation equipment.

“Our collaboration with Philips is expected to gradually contribute to sales as we expand our market reach in the US, Canada and Mexico,” he said.

“Orders from Japan for CogniBike-brand medical rehabilitation equipment recovered last month after the Japanese government revised the nation’s long-term care services law,” he added.

Dyaco reported revenue of NT$413.17 million (US$13.14 million) for last month, up 1.98 percent annually, but down 9.61 percent monthly.

The company attributed the decline to weak sales of fitness equipment in the northern hemisphere.

In the first five months of this year, revenue climbed 13.81 percent annually to NT$2.65 billion thanks to increasing online sales of Xterra products, the company said.

Net income rose to NT$57.41 million in the first quarter, compared with net losses of NT$100.05 million a year earlier, with earnings per share of NT$0.65.

Gross margin improved by 5.05 percentage points to 28.99 percent thanks to foreign-exchange gains, high utilization rates and price adjustments on its new products, the company said.

North America accounted for 72.17 percent of its revenue in the first quarter, while Europe contributed 15.6 percent and other countries 12.23 percent, it said.

Dyaco has four plants in Changhua County and one in Jiaxing, China, that mainly focuses on the export market.

The company said it would adjust its production lines if the US imposes tariffs on fitness equipment made in China.

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