Globeride predicts recovery in 2026 following 13.2% operating profit fall

The owner of one of the world’s largest suppliers of fishing tackle saw its operating profit fall 13.2% in the last financial year, but is predicting a 7.6% increase in 2026.

Japanese outdoor sports conglomerate Globeride – the owner of Daiwa – reported net sales across its portfolio of 123,983m yen, down 1.6% on the previous year, and an operating profit of 6,508m yen.

The results were achieved against a backdrop of a gradual recovery of the Japanese economy – its largest market – but against an unpredictable future caused by high material and energy prices as well as rising commodity prices fuelled by the depreciation of the yen.

The group told investors that internationally, heightened uncertainty about the outlook took its toll. This was due mainly to the volatile situations in Ukraine and the Middle East, high interest rates in the US and Europe, the slowdown of the Chinese economy and the future developments and monetary policy in the US, despite a recovery in consumer spending in the US and Europe.

Despite this, Globeride expects sales to rise 4.9% this year to 130,000m yen and a 7,000m yen operating profit – up 7.6% on this year. This is based on the expectation of a gradual recovery in the overall market, while the pace will vary from region to region.

“Although personnel and IT-related expenses are expected to continue, we will promote productivity improvements as well as focused and efficient cost management,” it added.

Globeride region by region

JAPAN
Despite net sales of 81,844m yen being down 0.4% last year, segment profit increased 8.9% to 4,511m yen. Fishing tackle launches from Daiwa included the introduction of the CERTATE and LUVIAS (above) spinning reels and the STEEZ bass rod.

AMERICA
The adjustment in the inventory situation has almost calmed down, reported Globeride, as the market showed a gradual recovery despite interest rates remaining high. The group made efforts to expand sales mainly in the bass sector with the launch of the TATULA series and sea fishing reels for the US market. Net sales were 13,340m yen – up 6.5% – due to the impact of a weak yen. Segment profit was 39m yen, down 87.7% year-on-year.

EUROPE
Persistently high interest rates and soaring energy prices slowed the pace of recovery in consumer confidence against a backdrop of weak market conditions. Bolstered by the launch of products that catered for local needs and gains on conversion due to the weak yen, net sales were 16,295m yen (up 10.5%) and segment profit of 665m yen compared to a 209m yen loss in the previous fiscal year.

ASIA AND OCEANIA
To combat business stagnation, particularly in China and South Korea, Globeride expanded sales in mainly high-class Japanese products and goods for local markets. This resulted in net sales of 50,283m yen (up 1.7%) and a segment profit of 5,131m yen (down 17.4%).