HONG KONG SAR -
Media OutReach -
28 June 2022 - HONMA Golf Limited ("HONMA"; together with its subsidiaries, the "Group"; HKEx stock code: 6858), one of the most prestigious golf brands worldwide, announced today its consolidated results for the year ended 31 March 2022 (the "Period").Financial Highlights- All key financial metrics improved significantly, with the Group's revenue, profit before tax and earnings per share reaching record highs since its IPO listing.
- Group revenue of JPY28,971.1 million (equivalent to USD249.2 million), up 27.4% versus FY2020/21.
- Gross profit margin of 54.1%, up 3.8 percentage points from the same period last year.
- Profit before tax for the year increased significantly by 212.4% to JPY7,560.3 million (equivalent to USD65.0 million), with earnings per share increasing by 233.0% to JPY10.22.
- Operating cash flow was JPY5,916.5 million (equivalent to USD50.9 million), up 48.5% year-on-year.
- The Board proposed a final dividend of JPY2.0 per share, together with the interim dividend of JPY1.5 per share, total dividends for the financial year will amount to JPY3.5 per share. Total dividend payout will amount to JPY2,119.7 million, representing 34.2% of the Group's distributable profits for the period.
During the Period, the global sports industry has shown signs of rapid recovery as governments around the world gradually relaxed COVID-19 related restrictions. In particular, the golf industry grew significantly in terms of participation and purchase interest. The Group has caught the tailwinds of industry development to actively implement its three-pronged growth strategy, namely product, channel and branding, and has achieved remarkable results.All markets demonstrated robust growthGeographically, most of the Group's main markets recorded robust sales growth compared to the same period last year, with revenue from Japan, China, Europe and Other Regions rising sharply by 29.8%, 38.7%, 47.1% and 48.7% year-on-year, respectively.On the back of a complete recovery of the retail environment, revenue from Japan rebounded by 29.8% to JPY8,497.2 million, fueled by the successful activation of BERES Aizu club sets in December 2021. In China, where public interest in outdoor sports surged after COVID-19, golf participation has been noticeably growing. Revenue from China (including Hong Kong and Macau) continued to rise by 38.7% year-on-year to JPY7,644.3 million, thanks to further improvement in retail operations and investments in digital marketing and e-commerce business.In another key home market, Korea, revenue grew by 7.0% year-on-year to JPY6,831.6 million, despite a mid-year change in the distribution rights for the Tour World club family, which is designed to pivot growth in the premium performance segment with a dedicated sales force and focused market penetration approach.Revenue from Europe and Other Regions also skyrocketed by 47.1% and 48.7% year-over-year, respectively, thanks to the successful activation of multiple club products and enhanced brand recognition. The Group's growth strategy in Europe and the United States was successfully advanced while ensuring a solid financial standing in both markets.Successful product strategies and new product launch accelerated growth for both golf club and non-club segmentsDuring the Period, all product categories revealed double digit revenue growth across the board, led by the apparel business with a record growth of 71.6%, while revenue from golf club, golf balls and accessories grew by 23.9%, 11.8% and 43.1%, respectively. The Group's non-club segment continued to increase its revenue share to 28.1%, compared to 26.0% in the same period last year.The Group now offers a complete golf lifestyle experience through its comprehensive range of golf and complementary products in the super-premium and premium-performance segments.HONMA continued to focus on club products that best represent Japanese traditional craftsmanship and innovative technology and made the decision to enhance and extend its product offering in both the super-premium and premium-performance segments. HONMA applied several of its revolutionary proprietary technologies to upgrade with a modern and sophisticated design and development approach in its latest BERES and TOUR WORLD products, which are designed for affluent and avid golfers. Following the successful launch of Beres Aizu and TW757, golf club sales grew by 23.9% during the Period, reconfirming HONMA's strong brand equity and its ability to withstand economic challenges since it entered the golf business in 1959.Beyond clubs, HONMA has been continuously nurturing its non-club business in Asia home markets as an important pillar of its growth strategy.To support HONMA's ambitious goal in apparel business expansion, the Group has assembled dedicated apparel design and sales teams in Japan, China and Korea and created a network of quality retail footprints. Sales from apparel increased by 71.6% to JPY2,963.4 million...
Read more: HONMA Golf Announces Record Annual Results for FY2021/22 Robust Growth across All Products and...
