Yonex’ revenues jumped by 51.1 percent to 53.9 billion yen (€410m) in the first nine months of its financial year, including an indicated 41 percent increase to 19.2 billion yen (€150m) in the third quarter ended Dec. 31. Sales rose in the nine months by just 37.1 percent to ¥27.3 billion (€210m) in the domestic Japanese market due to Covid restrictions. A significant recovery in China was a major contributing factor, driving a 77.6 percent increase in the rest of Asia to ¥22.2 billion (€170m).
Europe turned around to a small operating profit of ¥66 million (€510,000) as sales in the region went up by 13.9 percent to ¥1.63 billion (€130m), thanks to higher sales of tennis racquets and a gradual recovery in badminton following the reopening of indoor sports facilities. North American sales jumped by 61.7 percent to ¥2.44 billion (€190m), driven by higher sales of tennis products.
Worldwide, sales of badminton products rose by 61.2 percent to ¥30.7 billion (€240m), with overseas revenues growing by 4.3 percentage points to 79.4 percent of the total. Tennis jumped by 71.9 percent to ¥8.20 billion (€63m), with overseas markets representing 45.3 percent of the total. Golf revenues increased by 56.4 percent to ¥1.14 billion (€8.8m).
The company’s gross margin went up by 2.1 percentage points to 41.7 percent over the nine months, thanks to a recovery in the company’s domestic manufacturing operations, leading to an improvement in the operating margin to 3.4 percent from 0.4 percent a year earlier. The bottom line soared to ¥5.08 billion (€39m) from just ¥289 million.
The good results have led Yonex to improve its guidance for the full financial year through March 31. Sales are expected to reach ¥74.5 billion (€570m), largely due to stronger than expected sales in China. Net earnings are seen growing to ¥5.6 billion (€43m), thanks in part to negative goodwill from the acquisition of the tennis ball factory of Bridgestone Tecnifibre in Thailand, which was renamed Yonex Tecnifibre on Dec. 11.
