Mizuno Corp. reported record earnings for the fiscal year ended March 31 as revenues jumped 23 percent. For the fourth quarter, earnings rose 31 percent on a 35 percent revenue gain.

Fourth-quarter figures were calculated by subtracting nine-month results from full-year results.

For the fiscal year ended March 31, sales grew 22.8 percent to ¥212.0 billion ($1.56 bn) from ¥172.7 billion a year ago. The gains were mainly driven by golf in overseas markets and baseball, football and work business in its domestic Japanese market.

Operating profit jumped 31.1 percent to ¥12.9 billion ($950 mm) from ¥9.9 billion a year ago.

Gross margins improved 320 basis points to 41.4 percent from 38.2 percent. The SG&A expenses ratio increased to 35.7 percent from 32.1 percent a year ago.

Ordinary profit for the year climbed 27.9 percent from ¥11.0 billion ($80.8 mm) to ¥14.0 billion. Net income advanced 28.4 percent to ¥9.9 billion ($72.7 bn) from ¥7.7 billion. The performance marked a record net income for the year.

For the fourth quarter, sales improved 35.1 percent to ¥64.6 billion from ¥47.8 billion. Operating income jumped 50.0 percent to ¥2.7 billion from ¥1.8 billion. Ordinary income gained 30.8 percent to ¥3.4 billion from ¥2.6 billion. Net income advanced 31.3 percent to ¥2.1 billion from ¥1.6 billion.

Regional Performance
By region, Japan’s sales in the year advanced 15.1 percent to ¥114.3 billion $840 mm) from ¥131.5 billion. Operating profits in Japan rose 39.5 percent to ¥6.0 billion ($45 mm) from ¥4.3 billion a year ago.

Japan’s performance in the year benefited from a recovery after a sharp fall due to the pandemic. Sales increased in the sports category overall, especially baseball and football, and growth in the non-sports category was primarily led by work business.

Americas’ sales in the year climbed 31.5 percent to ¥31.1 billion ($228 mm) from ¥23.6 billion. Sales were fueled by golf. Steady sales were also seen in the team sports category (baseball and volleyball). Operating profits in the Americas region rose 7.7 percent to ¥2.8 billion ($21 mm) from ¥2.6 billion a year ago. Operating profit hit the record for the year.

EMEA’s sales vaulted 40.1 percent to ¥25.1 billion ($184 mm) from 17.9 billion. Operating profits improved 21.4 percent to ¥1.7 billion ($12.5 mm) from ¥1.4 billion. Footwear recovered sharply in the region from supply chain disruption, with running as the main growth driver. Sales and operating profit reached record highs.

Asia/Oceania sales jumped 43.8 percent to ¥24.3 billion ($179 mm) from ¥16.9 billion. Operating earnings vaulted 64.3 percent to ¥2.3 billion ($17 mm) from ¥1.4 billion. The region experienced a recovery from a sharp fall caused by the pandemic. Golf sales were strong across the region, especially in South Korea. Sales and operating profit were at record highs.

In the fourth quarter, sales in Japan grew 19.8 percent to ¥41.7 billion from ¥34.8 billion. Sales in the Americas region, sales vaulted 60.8 percent to ¥8.2 billion from ¥5.1 billion. EMEA’s sales were up 107.9 percent to ¥7.9 billion from ¥3.8 billion. Asia/Oceania’s sales climbed 55.8 percent to ¥6.7 billion from ¥4.3 billion.

By category, Footwear sales climbed 34.9 percent to ¥63.7 billion from ¥47.3 billion a year ago. The footwear category recovered sharply from supply chain disruption. Apparel advanced 15.9 percent to ¥57.8 billion from ¥49.9 billion. Equipment sales gained 20.5 percent to ¥55.2 billion from ¥45.7 billion, with growth mainly driven by golf.

Main Activities Performance
Among primary activities, baseball revenue in the year rose 16.6 percent to ¥36.4 billion from ¥31.2 billion a year ago.

Golf sales were up 32.4 percent to ¥33.6 billion from ¥25.4 billion a year ago. Running sales rose 23.9 percent to ¥24.9 billion from ¥20.1 billion. Golf and running showed strong sales overseas.

Global Football (soccer) sales surged 54.2 percent to ¥12.1 billion from ¥7.9 billion a year ago.

Indoor (volleyball, badminton, table tennis, basketball) sales were up 47.6 percent to ¥13.4 billion from ¥9.1 billion a year ago. Work Business sales advanced 33.2 percent to ¥9.8 billion from ¥7.3 billion a year ago. Sports Facilities’ sales increased 10.8 percent to ¥29.5 billion from ¥26.6 billion a year earlier.

Outlook
For the current year, Mizuno expects sales of ¥225 billion against ¥212 billion, representing a gain of 6.1 percent. Operating profits are forecasted to increase 16.3 percent to ¥15 billion from ¥12.9 billion.

Photo courtesy Mizuno