Yonex enjoyed a sales increase of 34 percent to 16.6 billion yen (€143.2m-$169.1m) in its second quarter, ended Sept. 30, leading the Japanese company to nearly double its net income to ¥2,396 million (€18.4m-$21.8m). The gross margin expanded by 3.5 percentage points to 46.7 percent.
Sales grew in Japan by 7 percent to ¥9,314 million (€71.7m-$81.5m). The strongest growth took place in Asia, where revenues jumped by 71 percent to ¥7,820 million (€60.2m-$58.5m), thanks mainly to a big jump in badminton sales in China. Europe slipped by 4 percent to ¥225 million (€1.73m-$1.97m), while sales in the North American market more than tripled to ¥809 million (€6.23m-$7.08m) as strong growth in tennis racquets more than offset a drop in badminton.
For the first half of its financial year, Yonex reported a higher sales increase of 57.5 percent to ¥34,788 million (€267.9m-304.6m), compared with a decline of 30.6 percent in the corresponding period of 2020, leading to a net profit of ¥3,344 million (€25.7m-$39.3m). The gross margin went up by 3.8 percentage points to 43.0 percent, helping to generate a positive operating margin of 5.4 percent against a negative margin of 1.0 percent, in spite of a 78 percent jump in advertising expenses.
On a global basis, sales of badminton products rose by 70.2 percent in Yonex’ first half, representing 55.5 percent of the total turnover. Tennis went up by 91.8 percent, with a share of 16.5 percent. Golf was up by 76.5 percent, but had only a 2.2 percent share in the turnover. Apparel and accessories went up by 22.7 percent, making up 25.0 percent of the revenues.
Sales rose by 56.4 percent in Japan, by 66.7 percent in the rest of Asia and by 57.2 percent in North America in the first half. They were off by 1.0 percent in Europe, where the company continued to post an operating loss, in contrast with the other regions. In terms of local currencies, sales grew by 58.1 percent in North America and declined by 9.3 percent in Europe.
In particular, sales increased in Germany, remaining strong in tennis and recovering in badminton due to fewer Covid-related restrictions. They declined in the U.K. because of continued restrictions that affected the company’s badminton segment.
Raising its guidance for the full year, Yonex is now projecting net income of ¥4.3 billion (€33M-$38m) on revenues of ¥71.0 billion (€550m-$620m).
