Daiwa owner profits hit by temporary inventory adjustments

The Japanese parent company of fishing tackle giant Daiwa saw its profit payable to shareholders slump by nearly 25% despite revenues increasing by 6% in the first quarter of its financial year.

Globeride reported group sales of 33,701m yen for the period ended June 30 compared to 31,691m for the previous comparable quarter, yet delivered a much reduced profit to investors of 1,345m  – down 24.1% compared to 1,773m in 2025 (7.5%).Operating profit also dived – down 51% to 1,164 (2,273m -18%)

Globeride blamed temporary inventory adjustments and an unfavourable product mix, which  contrived to hit the bottom line.

Despite a trading environment that still remains unpredictable due to high material and energy prices – as well as heightened consumer caution and the depreciation of the yen – Globeride reported a Japanese economy that maintained a gradual trend towards recovery against a backdrop of an improved employment and income environment and steady progress in capital investment.

The group reported net sales from its domestic market were up 20% year-on-year at 24,693m with profit 1,528m – down 21.5% due mainly to a deterioration in the cost of sales resulting from exchange rate fluctuations. During the period it launched its SEABORD electric reel (main picture) and EMERALDAS squid fishing rod to energise the fishing tackle market.

As the impact of tariff policies began to stabilise, the market in the US enjoyed a gradual recovery in conditions and delivered a 10.2% rise in sales to 4,983m. Segment profit was 222m, an increase of 0.6%. The group also made efforts to expand sales in the lucrative bass fishing sector with the introduction of the TATULA series (below) and in the sea space, with the launch of the ICAST award-winning BG series of spinning reels.

While the situation varied among countries across Europe, the region showed gradual signs of a recovery and Globeride saw its revenue rise 18.4% to 5,550m, delivering a 32.7% increase in profit of 460m.

Despite ‘slow’ progress in sales across China, the rest of the Asia and Oceania region enjoyed a recovery trend as Globeride worked to expand sales of mainly high class Japanese products made exclusively for the local area. As a result net sales were 14,827m – up 30.7% year-on-year. However, segment profit was down 48.7% to 391m due to changes in the product mix resulting from timing differences in the production plan as well as the impact of eliminating unrealised profit associated with the temporary increase in inventories from inter-company transactions.