Revenue and Margin Continues to Demonstrate Solid Growth
IMG { cursor: pointer } HONG KONG SAR -
Media OutReach - 29 November 2022 -
HONMA Golf Limited ("HONMA"; together with its subsidiaries, the "Group"; HKEx stock code: 6858), one of the most prestigious golf brands in the world, is pleased to announce the unaudited consolidated interim results for the six months ended 30 September 2022 (the "Period").
Financial Highlights- Major key financial metrics continued positive developments, with most of the Group's markets reporting rock solid sales growth
- Total revenue was JPY 14,927.4 million (equivalent to USD 112.1 million), up by 25.7% versus same period of FY2021/22
- Profit before tax increased by 113.5% to reach JPY 3,728.6 million (equivalent to USD 28.0 million), up from JPY 1,746.5 million for the six months ended 30 September 2021, resulting from increased operational profitability and positive currency results
- Net profit for the Period was JPY3,087.4 million (equivalent to USD 23.2 million), up 129.0% versus same period in FY2021/22. Net profit margin for the Period was 20.7%, up 9.3ppt versus same period in FY2021/22
- Net operating cash flow reached JPY 3,277.2 million (equivalent to USD 24.6 million) for the six months ended 30 September 2022, decreased by 11.5% as compared to the same period last year
- An interim dividend of JPY 1.5 per share represented approximately 29.4% of the Group's distributable profits as at 30 September 2022
During the Period, the overall golf business continued to experience a positive uptake in both participation and purchase interest with some countries either easing or abandoning Covid-19-related restrictions and some experiencing various degrees of home shelter and retail operation disruptions. Notwithstanding this, the Group delivered robust sales growth, continued and visible improvements in all of its financial metrics.
Most markets demonstrated robust sales growth During the Period, the Group steadfastly followed its growth strategies and delivered positive achievements, on the back of a strong rebound of consumer demand, continued marketing activities to drive HONMA's brand and product awareness, and the successful activation of various HONMA products. Geographically, most of the Group's main markets recorded a strong sales growth versus the same period last year. Korea led the way in terms of growth, delivering a year-on-year revenue growth of 97.1%, due to a continued uptake in golf participation and successful launch of new products since early 2022. Revenue from Japan grew by 3.4%, on the back of a complete sales recovery in all channels and product categories. Revenue from China (including Hong Kong and Macau), North America, and other regions recorded a year-on-year growth of 11.1%, 31.6%, and 41.2%, respectively. Meanwhile, revenue from Europe fell by 46.0%, reflecting the Group's decision to change its distribution model to an indirect one. On a constant currency basis, revenue from China dropped slightly by 4.3%, primarily due to the negative impact from epidemic prevention and control measures implemented in different parts of the country, which caused negative and material impact on the Group's retail operations and supply chain.
Comprehensive product improvement stimulated sales During the Period, sales from golf clubs as well as accessories and other related products showed double digit growth across different product families, with golf clubs recording a year-on-year growth of 31.2%, and accessories and other related products recording a growth of 52.2%, thanks to continued improvements in HONMA's product development, merchandise planning and retail operations. Following the Group's decision to strengthen and focus its product offering on super-premium and premium-performance consumer segments, the Group made considerable efforts to enrich its TOUR WORLD club family to include a performance enhancement series targeting avid golfers with an 8-12 handicap, and to upgrade its legacy BERES club family with a modern and sophisticated design and development approach to appeal to today's affluent golfers. For the six months ending September 30, 2022, revenue from the BERES and TOUR WORLD family grew by 37.1% and 17.1% respectively, as compared to the six months ended 30 September 2021. However, revenue from apparel and golf balls exhibited a slight downward trend of 1.7% and 2.7% from the same period last year, respectively. Such declines were primarily caused by continued disruptions to epidemic prevention and control activities in China as well as continued supply chain constraints in the sourcing of raw materials critical to the production of golf balls.
Extended retail presence with upgrading self-operated stores During the Period, the Group continued to maintain an extensive sales and distribution network that allowed it to address a broad customer base in its target markets. Throughout the period,...
