Japan-based racquet sports and golf equipment manufacturer Yonex Company, Ltd. reported revenues expanded 18.8 percent in its fiscal year ended March 31 to ¥138.2 billion ($936 mm). Due to the strong demand, Badminton and Tennis equipment sales increased in Japan and overseas.

“The global sporting event held in Paris and other international tournaments held around the world, and the successes of athletes at these competitions, helped to stimulate the sports market and increase attention paid to Yonex, leading to record-high net sales,” Yonex said. “We strengthened our efforts to expand our global fan base by proactively communicating the achievements of athletes at these events, while also reinforcing grassroots activities in each region.”

Operating profit reached ¥14.1 billion, up 22.1 percent year-over-year (y/y). Net profits gained 19.6 percent to ¥10.5 billion.

Yonex said that although higher raw material prices negatively impacted profitability, the positive effect of increased sales on gross profit more than offset this, resulting in higher gross profit and a record-high operating profit. SG&A expenses rose, mainly due to increased advertising expenses from enhanced marketing activities, particularly in the second half, as well as higher personnel expenses and system-related expenditures associated with strengthening its global IT infrastructure.

Net Sales by Reported Segments

 

Japan Segment
Net sales in the domestic Japan market increased 13.6 percent year-over-year to ¥58,005 million.

Domestic sales in the Badminton category increased due to continued strong demand. The company reported that racquet sales were strong in a wide price range. Within Tennis sales, racquets increased, but shoes declined, resulting in a slight decrease in overall tennis sales. Golf sales increased due to the increased attention to golf clubs, which resulted from Yonex athletes’ successes and new product launches. In Overseas Distributors, Badminton saw gains in Asian markets and Europe, while Tennis also grew in European countries.

Operating profits surged 125.1 percent to ¥3,694 million. Although higher raw material prices had a negative impact, gross profit margin recovered from last year’s decline caused by yen depreciation, which was also supported by pricing revisions. SG&A expenses increased, mainly due to higher advertising expenses from enhanced global marketing efforts and higher personnel expenses and IT system-related expenditures. However, the increase in SG&A expenses was offset by the higher gross profit, resulting in a rise in operating profit.

Asia Segment
Net sales in the Asia segment grew 24 percent to ¥67,999 million. In China, the success of the Chinese national team at international tournaments led to increased sales of Badminton equipment, apparel, and bags. In Taiwan, the Taiwanese men’s doubles pair won gold medals for the second consecutive time at the global quadrennial sports event in Paris to support Badminton sales.

Operating profits advanced 9.3 percent to ¥9,712 million. SG&A expenses increased due to higher advertising costs from enhanced marketing activities and higher personnel expenses. However, these increases were more than offset by the growth in gross profit due to higher sales, leading to a rise in operating profit.

North America Segment
Net sales in the North America segment improved 15.3 percent to ¥6,354 million.  Yonex said, “Tennis sales increased, particularly for racquets and strings, driven by Yonex’s growing momentum supported by the successes of Team Yonex athletes and the favorable market reaction to our new products. In Badminton, participation remained active. Although sales declined in the first half due to a high sales base in the previous fiscal year, they recovered in the second half and resulted in a full-year increase supported by the positive impact of currency translation.”

Operating profits jumped 123 percent to ¥560 million due to an increase in gross profit driven by higher sales and an improved gross profit margin, which offset the increases in personnel and other SG&A expenses.

Europe Segment
Net sales in the Europe segment increased 18.6 percent y/y to ¥5,359 million in the year, reflecting gains in Badminton and Tennis. The growth also reflected efforts to expand sales channels, strong sales in Germany and the positive effect of yen depreciation.

Operating profits were down 10.6 percent to ¥477 million as increases in SG&A expenses, such as advertising and personnel expenses, exceeded the increase in gross profit tied to higher sales.

Consolidated Net Sales by Sports Categories

 Earnings Forecasts for FY3/26

 

 

Photo and Charts courtesy Yonex