Financial Performance - For the fiscal year ending March 31, 2024, the company reported total revenue of ¥26,222.9 million, a decrease from ¥29,494.9 million in the previous year[19] - The net profit for the same period was ¥4,828.1 million, representing a 48.3% increase year-over-year from ¥3,255.6 million[19] - The operating cash flow for the fiscal year was ¥5,416.1 million, reflecting a growth of 47.3% compared to the previous year[19] - The gross profit margin for the fiscal year was 51.2%, slightly up from 50.8% in the previous year[31] - Total assets as of March 31, 2024, amounted to ¥42,545.2 million, an increase from ¥40,367.4 million in the previous year[32] - The total equity increased to ¥28,672.4 million from ¥26,030.9 million year-over-year[32] - Employee benefits expenses amounted to ¥4,492.0 million for the fiscal year ending March 31, 2024, reflecting the company's commitment to competitive compensation[87] - The company's total revenue decreased by 11.1% from ¥29,495.0 million for the year ended March 31, 2023, to ¥26,222.9 million for the year ending March 31, 2024[126] Sales and Revenue Breakdown - Golf clubs contributed 69.6% of the total revenue for the fiscal year ending March 31, 2024[69] - Revenue from Japan decreased by 4.7% to ¥9,363.1 million, primarily due to a 19.2% drop in wholesale revenue, while retail sales increased by 16.0%[135] - Revenue from China (including Hong Kong and Macau) fell by 3.7% to ¥7,508.5 million, attributed to a slowdown in the overall economy and retail market[136] - Revenue from Europe decreased by 18.3% to ¥361.8 million, reflecting a shift to an indirect distribution model[137] - Revenue from golf clubs dropped by 15.1% to ¥18,256.6 million, with sales in Japan, Korea, and China down by 4.5%, 12.5%, and 16.3% respectively[149] - Revenue from Korea decreased by 15.5% to ¥5,988.6 million, reflecting the optimization of the distribution network prior to new product launches[153] - Revenue from North America fell by 38.2% to ¥632.9 million, primarily due to ongoing negative impacts from last year's distribution network adjustments[154] - Revenue from other regions decreased by 28.7% to ¥2,367.9 million, mainly due to unfavorable currency depreciation and weakened purchasing power[155] - Revenue from self-operated stores was ¥10,952,237, accounting for 41.8% of total revenue, with a year-on-year increase of 7.2%[158] - Revenue from third-party retailers and wholesalers was ¥15,270,620, representing 58.2% of total revenue, showing a significant decline of 20.8%[158] Product Performance - Sales of the BeZEAL 3 product increased by 600% year-over-year, while the BERES series sales in Japan grew by 19.6%[20] - Revenue from golf balls slightly declined by 0.2% from ¥2,942.3 million to ¥2,936.3 million, primarily due to a 1.4% decrease in sales volume in Japan[130] - Apparel revenue grew by 4.9% year-on-year, with a remarkable 23.2% growth in mainland China[57] - Revenue from apparel increased by 4.9% from ¥3,009.1 million to ¥3,157.5 million, despite weak consumer confidence in China[132] Market Strategy and Growth - The company plans to continue enhancing its online presence and social media platforms to improve brand engagement and communication[5] - The company is investing in a digital ecosystem to enhance customer relationship management and e-commerce capabilities, aiming for a 360-degree brand experience[45] - The company continues to focus on the ultra-high-end and ultra-performance consumer segments, which are expected to drive future growth[42] - The company is restructuring its growth strategy in North America and Europe to target smaller, high-quality customer segments[70] - HONMA aims to strengthen its market share in the high-performance segment, particularly in Japan, Korea, and China, where significant growth potential remains[91] - The company plans to enhance its direct-to-consumer communication and sales strategy in North America and Europe, which together account for over 60% of the global golf market[93] - HONMA's marketing strategy focuses on transforming its image to appeal to younger, performance-oriented golfers, particularly through the new TOUR WORLD product lines[88] - The company is targeting the high-performance segment in North America with its TOUR WORLD product line to support growth strategies in that market[118] Brand Development and Consumer Engagement - The company has seen a continuous increase in membership numbers in China and Japan, enhancing customer relationship management systems[22] - The company launched products specifically designed for female golfers, including the 65th Anniversary Limited Series and BERES LADYGO[24] - The company sponsors TEAM HONMA, which includes six professional golfers, to enhance brand visibility and drive sales growth, particularly in Japan[50] - The company is focusing on enhancing consumer engagement and retail experience through digital capabilities and brand communication[36] - The company aims to attract younger, passionate golfers by recruiting social media-savvy athletes to strengthen brand repositioning[50] - The group hosted 3,564 customer events across major markets, primarily at golf courses, to enhance brand awareness[73] - The company is focused on enhancing brand exposure in Asia through collaborations with coaches and key opinion leaders[165] Operational Challenges and Sustainability - The company is facing challenges in the golf industry, including increased competition and supply chain issues due to labor shortages and rising raw material costs[95] - HONMA continues to monitor external challenges and will adjust its business strategies as necessary to mitigate risks while ensuring employee health and safety[96] - The company is committed to sustainable business development and creating long-term value for shareholders amid global economic uncertainties[121] - Water resource usage decreased by 5% compared to the previous year, with a density increase of 6.5%[188] Retail Expansion - The company opened 14 new stores in China, 1 in Japan, and 2 in other Asian regions, enhancing the retail experience with a unified brand image[49] - The company plans to continue expanding its self-operated stores, which numbered 95 in Asia as of March 31, 2024[80] - The company expanded its sales and distribution network, increasing the total number of stores from 90 to 95, with significant growth in China[105] - The total number of sales points in North America decreased to 344, with six new openings and seven closures during the year[163] - In Europe, the company reopened 94 new sales points, resulting in a network of 129 locations[163] - A strategic partnership with Itochu Corporation has been established to develop a clothing business, aiming to promote HONMA as a "golf lifestyle brand"[169] Innovation and Development - Research and development expenses for the fiscal years ending March 31, 2023, and March 31, 2024, were ¥199.7 million and ¥228.9 million, respectively, indicating a focus on product innovation[94] - The company is committed to applying innovative technologies and traditional Japanese craftsmanship in its product development[45] - The company aims to provide a comprehensive golf lifestyle experience by developing non-club product lines[169]
本间高尔夫(06858) - 2024 - 年度财报