War and stagnant Chinese economy take toll on Shimano sales

The prolonged war in Ukraine, tensions in the Middle East and a stagnant Chinese economy were blamed for a 31% drop in net income at Shimano in the first nine months of the financial year.

Net sales from its bicycle components dropped 12.3% to 253,861m yen compared to the previous comparable period last year and fishing tackle revenue decreased 5.6% to 80,690m yen. Group operating income decreased 29%, ordinary income 39.4% and net income attributable to owners of the parent 31.3% to 41,343m yen.

In its report to investors Shimano said that demand for fishing tackle, which had been overly strong globally, cooled down and sales remained weak, although adjustments of market inventories started to show signs of progress. In its main market of Japan, Shimano experienced lacklustre sales affected by extreme heat, adverse weather conditions and continuing adjustments to market inventories.

Overseas, the North American market continued to deliver strong sales amid stable demand as market inventories progressed to an appropriate level.

Sales in Europe continued to be weak, but Shimano reported progress in the adjustment of market inventories. Asia saw lacklustre sales affected by a slowdown in consumption and adverse weather conditions in a market that saw inventories remaining high.

The Australian market – backed by favourable weather and fishing conditions – reported good sales.

The company’s new baitcasting reels, OCEA CCONQUEST CT and spinning models, BB-X TECHNIUM FIRE BLOOD were well received in addition to brisk ordering for the TWINPOWER spinning reels.