Daiwa owner victim of heightened global uncertainty

The owner of Daiwa saw a marginal increase in revenue from its brands in sports that include fishing, golf and cycling for its last quarter as it remained victim of heightened global uncertainty.

Japanese giant Globeride reported group sales rose by just 0.7% for the period ended June 30 to 31,691m yen compared to the same period of the previous year of 31,481m. Operating profit rose by 11.8% to 2,373m – down 5.4% year-on-year.

The group said that the Japanese economy experienced a gradual recovery trend against a backdrop of improved employment, income and inbound tourism. “However,” it told investors: “The future remains difficult to predict due to high material and energy prices as well as stagnant consumer confidence caused by rising commodity prices, fueled by the depreciation of the yen.”

Overseas, Globeride reported heightened uncertainty about the outlook due mainly to the geopolitical risks such as the situations in Ukraine and the Middle East, continued high interest rates in the U.S. and Europe, the slowdown of the Chinese economy and future policy developments and monetary policy in the United States.

“Under threse circumstances, the outdoor sports and leisure markets are lacking in strength mainly due to the impacts of rising energy prices and the increased burden felt by households,” said the company.

Japan

The market still remains sluggish due to low disposable income. To combat the situation Globeride launched new products for anglers, including the SALTIGA (above) and LUVIUS spinning reels. Net sales for the region were 20,575m – flat -year-on-year – and segment profit 1,947m, up 28.75%.

Americas

Globeride reported that inventory adjustment has almost calmed, but warned the recovery in market conditions were gradual, hampered by the high level of interest rates. Net sales: 4,522m (up 3.8% year-on-year); profit: 220m (up 38%).

Europe

Persistently high interest rates and soaring energy prices slowed the pace of recovery. Net sales: 4,688m (down 5.2%); profit: 347m (down 25.12%).

Asia and Oceania

While the situation varies from country to country, business remains stagnant, particularly in China. Net sales: 11,345m (up 8.8%); profit: 763m (down 17.6%).