The Japanese group, citing weak sales of completed bicycles in several regions, reports a 22.2 percent drop in annual operating income to ¥65,085 million (€414.1m) for the 12 months ended Dec. 31. 1.
Japan-based Shimano Inc., citing weak sales of completed bicycles in several regions, reports a 22.2 percent drop in annual operating income to ¥65.09 billion (€414.1m) for the 12 months ended Dec. 31. Net income attributable to owners of the parent, however, rose by 25 percent to ¥76.33 billion (€485.6m) from ¥61.14 billion. FY24 total sales contracted by 4.9 percent year-over-year to ¥450.99 billion (€2.87bn).
Bike component sales and profits decline in 2024
The bicycle component business, impacted by weak sales of completed bicycles in North America and soaring prices for them in Japan, had a 17.0 percent drop in annual operating profit to ¥54.16 billion (€344.5m) and a 5.2 percent contraction in annual sales to ¥345 .55 billion (€2.2bn). Unfavorable early spring weather reduced European bike sales, causing market inventories to remain high. However, in the Asian, Oceanian and Central and South American markets, inventory levels showed signs of improvement throughout the year.
Weaker global demand impacts fishing tackle segment
In the fishing-tackle segment, annual sales were weak on a strong cooldown in global demand. Operating income slipped by 41 percent to ¥10.93 billion (€69.5m) on 3.9 percent drop in sales to ¥104.99 billion (€667.9m). But sales regained momentum in Europe, with the market’s inventory levels starting to show signs of improvement. In North America, sales were backed by stable demand. Inventories remained high in Asian markets on weak demand and adverse weather, whereas favorable weather and fishing conditions made for favorable sales in Australia.
Regional breakouts
Shimano’s annual sales declined by 19 percent year-over-year in Europe to ¥160.63 billion (€1.02bn) and fell by 14.9 percent in the home Japan market to ¥41.45 billion (€263.7m). FY24 revenues grew by 4.9 percent in North America to ¥46.87 billion (€298.2m) and increased by 12.5 percent in Asia to ¥178.99 billion (€1.14bn).
H1, FY25 outlooks
The group believes rising resource prices and supply-chain disruptions caused by logistics stagnation could put downward pressure on the global economy this year despite an expected moderate recovery trend. The European economy may be influenced by political instability in major countries, Shimano estimates, and the US market “may be swayed by trade policies” of the Trump administration.
The company is currently forecasting a 3.1 percent decline in H1 operating income to ¥30.0 billion (€190.9m) despite an expected 5.1 percent jump in net sales to ¥228.0 billion (€1.45bn). H1 net income attributable to owners of the parent is predicted to drop by 29 percent year-over-year to ¥31.0 billion (€197.2m).
For FY25, Shimano’s current outlook calls for a 7.6 percent operating income expansion to ¥70.0 billion (€445.3m) and a 4.2 percent year-over-year increase in sales to ¥470.0 billion (€2.99bn). Annual net income attributable to owners of the parent is forecast to slip by 7.0 percent to ¥71.0 billion (€451.7m).
