Daiwa owner reports ‘sense of stagnation’ in post COVID recovery

Globeride, the Japanese owner of tackle giant Daiwa, has seen its revenue for the year ended March 31st increase by 11.5% to 134,583 million yen despite a global stagnation in the post-pandemic recovery.

The company told investors: “Although expectations were high for economic activity to recover as a result of the easing of pandemic restrictions, the impact of the rapid depreciation of the yen and price hikes has made it difficult to be optimistic about the future of the economy.

“The post-COVID recovery took precedence overseas, but rapid inflation caused by the situation in Russia and Ukraine has created a sense of stagnation in the post pandemic recovery.

“Under these circumstances, market conditions in the outdoor sports and leisure industry – to which the group belongs – have diversified into other sports and leisure activities, such as travel and shopping which had previously been restricted. In response to this the group has concentrated on providing attractive products and high quality service to everyone who loves nature and sport.”

Regionally Globeride reported:

Japan
Profit was down 17.1% year-on-year to 7,309m yen due to increased import costs following the depreciation of the yen and a switch by consumers to other leisure activities, such as travel. “The market conditions in Japan lacked strength,” reported the group.

America
Sales for the year were 13,945m yen thanks to a strong performance from the sale of new products and the depreciation of the yen. Profit for the year rose a more than healthy 22.5% year-on-year to 238m yen.

Europe
Despite rapid inflation due to the war in Ukraine affecting consumer spending, Globebride saw sales in the region of 14,465m yen – up 6.7%. However, profit for the year of 142m yen was down 86.7% due to a rise in general expenses which included increases in logistical costs and soaring energy prices.

Asia & Oceania
Market conditions for outdoor sports and leisure activities were generally firm with China and South Korea delivering a particularly strong performance. Sales for the region rose a more than impressive 66.4%.

Globeride says that in the coming year it expects to be hit by rising purchase costs and an increase in sales expenses due to the soaring raw material prices globally. It is predicting a profit of 12.2 billion yen (up 0.6% year-on-year).