Yonex, the Japanese sporting goods company, reported solid first-half results but warned that it anticipates tougher business conditions ahead due to raw material price hikes, the depreciation of the yen, inflation, and general economic condition. The group, however, said it will maintain investments in marketing and human resources “to sustain growth in the mid- to long-term.”
H1 operating profit increased 70 percent to ¥7,116 million (€53.0m) from ¥4,189 million, but the gross margin slipped slightly to 45.2 percent from 45.5 percent. Net profit rose 67 percent to ¥5,595 million (€41.7m) from ¥3,344 million. Total revenues increased 44 percent to ¥50,092 million (€273.1m) from ¥34,788 million.
The group said that demand continued to recover in all regions, resulting in record-high sales for the period. Outside Japan, the depreciation of the yen bolstered sales results. Yonex said the impact of China lockdowns was minimal.
Europe generated a 93 percent increase in H1 sales to ¥1,671 million (€12.5m) on higher tennis and badminton equipment sales coupled with the resumption of international tournaments and the re-opening of sports facilities. But the region’s operating loss widened to ¥37 million from a loss of ¥23 million in the year-ago period on higher advertising costs. Elsewhere, sales in Japan reached ¥24,291 million (€180.9m) with a corresponding operating profit of ¥2,672 million (€19.9m); revenues climbed 76 percent in North America to ¥2,568 million (€19.1m) with an operating profit of ¥375 million; and sales throughout Asia increased 59 percent to ¥21,215 million (€158.0m) with a 91 percent improvement in operating income to ¥4,472 million (€33.3m) from ¥2,338 million.
