Higher sponsorship and athlete contract expenses coupled with currency headwinds and a depreciation of the Japanese yen dragged down Yonex’s Q1 operating income, despite an 18 percent revenue growth, to ¥27,992 million (€187.5m) from ¥23,694 million for the three months ended June 30.
Operating income slipped by 19 percent to ¥2,774 million (€18.6m) and profit attributable to the parent fell by 20 percent to ¥2,424 million (€16.2m). Gross margin declined by 220 basis points to 43.7 percent from 45.9 percent. Period-end inventories were up 4.2 percent in yen to ¥14,871 million, but down in euros year-over-year.
Badminton sales bolster Germany
Sales in Europe increased by 39 percent to ¥1,191 million (€8.0m), bolstered by higher badminton and tennis sales in Germany. UK sales rose due to an increase in badminton equipment sales. The region’s operating profit was ¥135 million for the period.
In North America, total sales rose by 34 percent to ¥1,731 (€11.6m), aided by strong sales of badminton gear and the effect of yen depreciation, but operating profit fell by 7 percent to ¥215 million. Elsewhere, sales in the home Japan market increased by 2 percent to ¥8,532 million (€57.2m) and jumped by 27 percent throughout Asia to ¥15,306 million (€130.4m).
From a category perspective, Q2 Badminton sales rose by 22 percent to ¥16,465 million (€110.3m) and accounted for nearly 59 percent of all revenues in the period. Tennis sales ticked up by 2.6 percent to ¥4,595 million (€30.8m) with the gain in markets outside of Japan adding 15 percent to reach ¥2,699 million (€18.1m). Golf sales swung 15 percent higher in Q2 to ¥544 million (€3.6m) and Other sales rose by 42 percent year-over-year to ¥6,201 million (€41.5m).
Yonex maintains FY24 outlook
With the results, Yonex maintained its full-year outlook despite uncertainty over the global business environment and expected higher costs for marketing and personnel.
Annual revenues are forecast to grow by 8.4 percent to ¥116,000 million (€772.2m) with operating income coming in 6.3 percent higher at ¥10,700 million (€71.7m). FY24 profit attributable to the parent is pegged at ¥7,800 million (€52.3m).
