Daiwa helps Globeride’s US business surge as tariffs stabilise

Daiwa parent company, Globeride, has reported a sharp turnaround in profitability across the Americas with the help of its fishing business, posting a 832% rise in first-half segment profit.

For the six months to September 30, Americas profit climbed to ¥546 million yen (£2.8m), from ¥58m in the previous year, while sales rose 16.5% to ¥9.52 billion (£49m).

Globeride said tariff policy disruption was beginning to stabilise in the US market, where it pushed bass-fishing products from the Tatula range alongside the BG-series of spinning reels for saltwater anglers.

The stronger American result came as group sales increased 6.4% to ¥69.77 billion (£360m). However, operating profit slipped 12.1% to ¥4.30 billion (£22m), with higher costs, inventory-related adjustments and increased overheads offsetting revenue growth.

Japan remained Globeride’s largest market, with segment sales up 19.8% to ¥50.12 billion, despite the sluggish outdoor and leisure markets – a result of rising energy and commodity prices that has affected disposable income in the country

It told investors that to combat the situation, it launched new products including the Certate spinning reels, Seaborg electric reels and morethan sea bass rods.

Soaring fuel prices driven by the situation in the Middle East took its toll across Europe, where profit dropped 16.2% year-on-year to 531m on net sales of 9,730m – a rise of 5.2%.

Despite results from the Asia and Oceania region being mixed as the economic situation across the countries varied, Globeride saw net sales rise 35.2% (33,684m) and segment profit increase by 25.1% (2,898m).

The group said it worked to expand sales mainly in the Japanese-made products and goods made exclusively for the region. The Greater China region – with China at its heart – continued to show slow progress, while sales in Korea and Southeast Asia remained steady.

Globeride maintained its full-year forecast of ¥134 billion in sales and ¥7 billion in operating profit, while raising its interim dividend to ¥50 per share.