Mizuno Corp. reported a significant rebound in profits in the six months ended September 30 as sales grew 28.4 percent. The sales gains were helped by strong sales in golf and running, especially in the Americas and EMEA.
Sales reached ¥85.1 billion from ¥66.2 billion a year ago.
Operating profit improved to ¥5.6 billion from a loss of ¥900 million. The improvement was driven by the sales increase, an improved gross margin ratio and a reduction in expenses. Operating profit reached its highest level since FY99.
Gross margins improved to 42.0 percent from 39.7 percent while the SG&A expense ratio declined to 35.4 percent from 41.0 percent
Net income improved to ¥4.3 billion from ¥100 million.
By region, sales in Japan rose 20.1 percent to ¥54.3 billion from ¥45.2 billion. Japan benefited from the recovery from a sharp fall in the year-ago period caused by the pandemic. Competitive sports, especially indoor sports, still suffered in the latest six months from the severe business environment due to the restrictions imposed to tackle the pandemic.
Sales in the Americas region improved 47.6 percent to ¥12.4 billion from ¥8.4 billion. The region was boosted by strong sales in golf products and also achieved record operating profit due to sales growth and “high efficiency of its business.”
EMEA sales reached ¥9.6 billion against ¥6.7 billion, a gain of 43.3 percent. The region’s record 2Q revenues and operating profit were driven by strong sales in the running category. Mizuno established regional headquarters in EMEA in the latest six months.
Sales in Asia/Oceania rose 46.6 percent to ¥8.8 billion from ¥6.0 billion. While business in South Korea and Southeast Asia had been impacted by COVID-19, good performance in Australia pushed up regional sales to pre-pandemic levels. Favorable sales in golf clubs were seen.
Photo courtesy Mizuno
