Daiwa owner posts 13% increase in sales despite ‘weak’ sector

Globeride – the owner of Daiwa – saw its sales rise 13% during the nine months to December 31st last year and profits increase 10% despite the outdoor sports and leisure markets remaining weak.

The Japanese group reported net sales of 105,858m yen and an operating profit of 12,718m yen despite an increase in import purchasing costs and soaring raw material prices.

In Japan, Globeride said that its leisure sector remained weak, partially due to financial pressure on households from rising energy and commodity prices and the increase in other leisure activities, including travel, following the relaxation of movement restrictions.

It added that in such circumstances, the group launched new products and provided services to customers which led to net sales of 67,399m yen – an increase of 5.4% year-on-year. Segment profit was down, however, partially due to the yen’s rapid depreciation that drove up the cost of imports.

New product sales in the Americas helped Globeride’s net sales rise 34.7% to 11,447m yen, leading to a 272m yen profit – up 37.2%.

In Europe, the prolonged war in Ukraine indirectly caused rapid inflation and affected buying patterns. Despite that, sales were up 6% to 11,170m yen, but profits were down 51.9% to 535m yen, due to increased logistics costs and soaring energy prices.

In the Asia and Oceania region, where the socio-economic situation varies due to the different handling of the pandemic, the outdoor sports and leisure markets were resilient for the nine months under review.

Group sales remained positive, especially in China and South Korea, resulting in a 40.8% increase in sales to 43,571m yen and a profit of 6,998m yen – up 86.1%.