Yonex, citing a better-than-expected recovery in China after pandemic-related lockdowns eased, has increased its H1 and financial year forecasts. The Japanese company has raised its H1 revenue forecast by 20 percent to 48,000 million yen (€342.9m) from ¥40,000 million and its operating profit outlook by 58 percent to ¥6,000 million (€42.9m) from ¥3,800 million for the six months ending Sep. 30. For the full year, the group is now calling for total revenues of ¥97,000 million (€692.9m) and corresponding operating income of ¥9,200 million (€65.7m). Annual net profit is expected to increase nearly 19 percent to ¥7,000 million (€50.0m). The company said it took the prospect of higher raw material costs and higher SG&A expenses into consideration before increasing the forecasts.
Fueled by strong sales of badminton and other products in China, higher revenues across segments, and full inventory recoveries in various regions, Yonex reported record first-quarter sales of ¥23,694 million (€181.7m). Period operating profit rose 160 percent to ¥3,422 million (€26.24m). Net income soared 219 percent year-over-year to ¥3,025 million (€23.2m).
Regionally, Europe returned to profitability with an operating income of ¥21 million versus a loss of ¥26 million in the year-ago quarter as sales rose by a whopping 149 percent to ¥857 million (€6.6m) from ¥344 million. In the U.K., the badminton market fully recovered as regulations were relaxed. The German market, meanwhile, generated higher sales of racquets and other tennis products, with badminton sales recovering due to the re-opening of sports facilities and the resumption of international competitions.
Elsewhere, North America operating profit increased by 148 percent to ¥230 million on a 101 percent improvement in quarterly sales to ¥1,292 million (€9.9m). Asia operating income jumped by 208 percent to ¥2,248 million (€17.2m) on 82 percent revenue growth to ¥10,056 million (€77.1m). In Yonex’s home market, the operating profit was 35 percent higher at ¥952 million versus ¥704 million as net sales increased 19 percent to ¥11,294 million (€86.6m).
All segments posted double-digit, year-over-year sales increases in the period. Global badminton sales were nearly 53 percent higher at ¥13,526 million (€103.7m). Tennis sales increased by 50 percent to ¥4,478 million (€34.3m) as golf sales swung 40 percent higher at ¥472 million (€3.62m). All Other (apparel and accessories) sales rose by 31 percent to ¥5,024 million (€38.53m).
