Shimano sales on a high but group issues global warning

While tackle giant Shimano continued to benefit from the upturn in outdoor activities in 2021, it has issued a warning in its forecast for the current year.

Reporting a 28% rise in tackle sales to 102,388 million yen for the 12 months ended December 31st, it believes that the global economy will be ‘weighed down’ by the spread of infection from new potent variants of COVID amid mounting industry issues.

In its report to investors, it said: “Shortages of semi-conductors and electronic components, rising prices of raw materials, tight logistics, a labour shortage and other problems may worsen further.”

It also expressed concern that the Chinese economy – one of the largest in the world – will slow down sharply due to the worsening debt problems at certain companies among other factors. “The impact of the slowdown will spread to the world economy and drag down the overall situation,” it said.

Shimano said that the fishing tackle market ‘thrived’ last year and maintained high demand around the world. In its domestic market of Japan the group said: “Although there were signs of a lull in the fishing boom, sales remained robust, led by salt lure-related products as the COVID situation started to settle down and consumer appetite increased in addition to good weather.”

In its export markets, demand for tackle in America remained high with firm sales, stable weather and buoyant markets. In Europe, while demand started to cool off in some regions, sales remained solid as a result of widespread vaccinations and progress in online sales.

Sales in Asia remained favourable due to strong demand for the high price range of products especially in China where the impact of COVID was small.

Despite some regions being put under lockdown, sales remained favourable in Australia.

Stand-out fishing products of 2021 included the BB-X Technium, Ultegra and Twin Power SW spinning reels, and the Antares DC and SLX MGL baitcasters. Its Tribal TX carp rods were also well received in the market.

On a group-wide basis, Shimano saw high demand for bicycle and fishing products to the extent that it had to increase production capacity at factories in Japan and overseas. As a result, net sales increased 44.6% from the previous year to 546,515 million yen, with operating income rising 79% to 148,287 million yen.