Globeride reports modest growth in market lacking strength

The owner of Daiwa has reported a modest 0.5% increase in sales for the first six months of its financial year, describing the outdoor sports market in which it operates as lacking strength as a result of an increased burden on households driven by rising energy and commodity prices.

Globeride, which has major players in the fishing, tennis, golf and cycling markets, saw revenue for the period ended September 30 of 65,573 million yen. Operating profit was down 2.4% to 4,893m yen, due mainly to an increase in selling, general and administrative expenses.

During the six months under review, Globeride said that the Japanese economy saw a gradual increase towards recovery, against the backdrop of an improved employment and income environment and an expansion of inbound tourism demand.

“However,” it added: “The future still remains difficult to predict due to high material and energy prices as well as stagnant consumer confidence caused by the rising commodity prices fueled by the depreciation of the yen.”

Overseas, heightened uncertainty about the outlook was caused by the situations in Ukraine and the Middle East, continued high interest rates in Europe and the US, the slowdown of the Chinese economy and the trade policy developments and monetary policy in the US.

JAPAN

In a sluggish market, sales were 41,822m yen – down 2.5% year-on-year – despite the launch of the Saltiga spinning reel and Luvia saltwater fishing rod by Daiwa. Segment profit was 3,766m yen – up 15.3%.

AMERICA

Globeride said that the future remains uncertain in the region as a result of the impact of tariffs. Daiwa made efforts to expand sales in the bass fishing sector, including the launch of the Tatula series and the introduction of saltwater reels. Net sales were up 1.5% at 8,174m yen, against segment profit of 58m yen – down 63.2% year-on-year due to an increase in selling, general and administrative expenses.

EUROPE

Persistently high interest rates across the region and soaring prices slowed the pace of recovery in consumer confidence, while market conditions showed signs of bottoming out. Globeride added that it took measures, including the launch products that catered for local needs, which saw net sales rise 0.3% to 9,250m yen, while segment profit was 633m yen, down 12.1%.

ASIA AND OCEANIA

Business remains stagnant in the region, particularly in China. Revenue was up 5.3% to 24,922m yen, but segment profit decreased 11.4% to 2,316m yen.