Mizuno Corp said its America region returned to profitability for the first time in four years. Sales fell for the third straight year.
The Americas region’s operating income in the year ended March 31 reached ¥160 million against a loss of ¥210 million the prior year. Revenues slumped 10 percent to ¥18.0 billion from ¥20.0 billion.
In its statement, Mizuno said sales in the Americas decreased due to a sales strategy emphasizing profitability. Profitability was also helped by a focus on the optimization of its corporate structure.
The statement noted that Mizuno Americas in the future will be looking to expand sales by developing new products while also focusing on a reduction in fixed costs.
Companywide, Mizuno’s revenues in the year reached ¥178.1 billion, down 3.9 percent. Operating profit reached ¥7.6 billion, off 5.2 percent. Ordinary profit reached ¥7.7 billion, down 4.8 percent. Net income was ¥6.0 billion, up 23.1 percent.
Gross margins eroded to 40.6 percent from 41.3 percent. Companywide SG&A expenses were reduced to 36.3 percent of sales from 37.0 percent.
In Japan, revenues in the year fell to ¥124.5 billion from ¥129.3 billion. Operating profits dropped to ¥5.78 billion from ¥7.35 billion.
In the EMEA region, revenue rose to ¥15.1 billion from ¥14.3 billion. The region showed an operating profit of ¥340 million against break-even results in FY18.
In the Asia/Oceania region, revenues eased to ¥20.5 billion from ¥20.9 billion. Operating income was ¥1.23 billion against ¥990 million.