Shimano reported a 22.4 percent increase in net income to 68,558 million Japanese yen (€491.6m) for the six months ended June 30. Operating income was 15.7 percent higher for the period at ¥80,909 million (580.2m) versus ¥69,922 million in the year-ago period. Pearl Izumi U.S. was excluded from the reported results due to its May sale to United Sports brands. First half revenues rose 14.7 percent to ¥303,686 million (€2.18bn) as the company experienced steady demand for bicycles and fishing tackle despite signals of economic cooling worldwide. In Europe, soaring energy prices and the war in Ukraine contributed to deteriorating consumer sentiment, the company said.
Demand for bicycles remained above pre-Covid levels during the first half, especially strong demand for high-end models with low inventory levels. Meanwhile, inventories of entry-level bikes caught up with demand. Segment sales rose 17.2 percent year-on-year to ¥249,203 million (€1.79bn) during the six months.
The fishing segment, meanwhile, showed signs of cooling down in H1 despite steady sales in Europe and strong fishing tackle demand in North America. Segment results in China were impacted by restrictions on activities due to pandemic-related lockdowns, but sales in the Korean and Taiwanese markets remained strong, Shimano reported. Worldwide fishing tackle sales in H1 increased 4.5 percent to ¥54,235 million (€389.0m).
For the fiscal year ending Dec. 31, Shimano has raised its outlook for ordinary and net income, 7.0 and 10.7 percent, respectively, but maintained its annual net sales forecast at ¥580,000 million (€4.16bn). Ordinary income is now pegged at ¥174,500 million (€1.15bn) and net income at ¥128,400 million (€920.7m).
