Financial Performance - For the fiscal year ending March 31, 2024, the company reported a 25.9% increase in profit before tax to 5,152.3 million JPY (approximately 35.9 million USD), up from 4,092.9 million JPY in the previous year[13]. - The company reported a net profit of ¥4,828,128 million for the fiscal year 2024, an increase of 48.3% from ¥3,255,605 million in the previous year[95]. - Total revenue decreased by 11.1% from ¥29,495.0 million for the fiscal year ending March 31, 2023, to ¥26,222.9 million for the fiscal year ending March 31, 2024[73]. - The operating profit margin decreased to 10.3% for the fiscal year 2024, down from 13.1% in the previous year, reflecting ongoing operational challenges[95]. - The company has seen a recovery in golfer participation and purchasing intent following the easing of COVID-19 restrictions, despite ongoing economic uncertainties[66]. Revenue Breakdown - Golf clubs accounted for 69.6% of the total revenue for the fiscal year ending March 31, 2024, highlighting the company's focus on this product line[24]. - Revenue from golf clubs fell by 15.1% from ¥21,512.9 million to ¥18,256.6 million, with sales in Japan, Korea, and China declining by 4.5%, 12.5%, and 16.3%, respectively[75]. - Revenue from apparel increased by 4.9% from ¥3,009.1 million to ¥3,157.5 million, despite weak consumer confidence in China[76]. - Revenue from accessories and other related products decreased by 7.8% to ¥1,872,368 million, mainly due to sales restrictions in Japan ahead of new product launches[101]. - Revenue from Japan decreased by 4.7% to ¥9,363,144 million, primarily due to a 19.2% drop in wholesale revenue, although retail sales increased by 16.0%[103]. Market Strategy - The company aims to redefine its brand to appeal to younger golfers, enhancing its online presence and communication strategies[23]. - The company plans to continue restructuring its distribution strategy in North America and Europe, focusing on smaller, high-quality customer segments[18]. - The company aims to enhance brand and product awareness through direct consumer communication and sales strategies across existing wholesale points and digital platforms[90]. - The company is committed to optimizing manufacturing processes and expanding production capacity in response to sales growth[61]. - The company plans to focus on sustainable growth in North America and Europe, which account for over 60.0% of the global golf market[90]. Investments and Acquisitions - The company has invested significantly in retail distribution networks and digital capabilities in Japan and China to enhance consumer experience[21]. - The company is focusing on potential strategic acquisitions, with 29.4% of the proceeds from the global offering earmarked for this purpose[184]. - The company has not yet committed to any acquisition targets, but is evaluating potential strategic acquisitions in the golf product industry[187]. - The company plans to utilize the remaining 0.2% of unutilized proceeds from the global offering for general corporate purposes[167]. Cash Flow and Financial Health - The company maintained a positive net operating cash flow of 5,416.1 million JPY (approximately 37.7 million USD) for the fiscal year ending March 31, 2024, compared to 3,675.9 million JPY (approximately 27.3 million USD) in the previous year[13]. - As of March 31, 2024, the company's cash and cash equivalents amounted to ¥16,617.1 million, primarily held in RMB, JPY, and USD[174]. - The company's interest-bearing bank borrowings were ¥6,990.0 million, with an effective interest rate ranging from 0.17% to 3.08%[175]. - The debt-to-equity ratio improved from 36.3% in 2023 to 34.1% in 2024[153]. - The company paid dividends totaling (1,851,458) thousand yen, down from (2,133,460) thousand yen in the previous year, suggesting a potential strategy to retain more earnings[196]. Operational Challenges - The company is facing challenges including increased competition, labor shortages, and rising raw material prices, which may impact future performance[92]. - Sales revenue from third-party retailers and wholesalers decreased by 20.8% from ¥19,278.0 million to ¥15,270.6 million, with a fixed exchange rate basis decline of 22.3%[108]. - The company has not made any significant investments, acquisitions, or sales during the year ended March 31, 2024[157]. - The company is enhancing its e-commerce capabilities and restructuring customer relationship management systems in key markets like Japan, China, and the U.S.[34]. - The company continues to evaluate existing sales channels and explore new ones to enhance its distribution network[59].
本间高尔夫(06858) - 2024 - 年度业绩