Shimano Q4 reporting shows 16.6% net sales increase. 2022 a record year.

On releasing its Q4 2022 financial reporting Shimano also concluded its 2022 review, with the Japanese manufacturer reporting net sales from (bicycle components) increased 16.6% from the previous year to 517,436 million yen, and operating income increased 15.9% to 144,994 million yen.”

Of group performance, including Fishing Tackle, “total assets as of the end of fiscal year 2022 amounted to 826,413 million yen, an increase of 121,043 million yen compared with the figure as of the previous fiscal year-end.”

The report further highlights that, “During fiscal year 2022, while restrictions on activities to tackle the spread of the novel coronavirus (COVID19) were eased, the outlook for the global economy remained uncertain due to soaring resource and commodity prices caused by the prolonged situation in Ukraine and monetary tightening measures aimed at curbing inflation taken by central banks in various countries, among other factors.”

“In this environment, demand for bicycles and fishing tackle remained firm, although showing signs of cooling down, and for fiscal year 2022, net sales increased 15.1% from the previous year to 628,909 million yen. Operating income increased 14.1% to 169,158 million yen, ordinary income increased 15.7% to 176,568 million yen, and net income attributable to owners of parent increased 10.6% to 128,178 million yen.”

Q3 reporting from the bicycle component and fishing equipment manufacturer had already highlighted a cooling in the market, whilst still remaining ahead of pre-Covid levels.

On assessing the market, as part of year end reporting, Shimano highlights:

“In Europe, consumer sentiment was sluggish against a backdrop of concerns about resource and energy supply, rising prices, the prolonged high inflation and other factors, which increased fears of an economic slowdown.”

“In the U.S., while rises in policy rates to tame high inflation put downward pressure on economy, personal consumption remained firm backed by a solid employment environment.”

Focused specifically on cycling components, and regional market demand:

“In the European market, sales of bicycles and bicycle-related products remained firm, partly
backed by strong interest in bicycles. Despite shortages in inventories of completed bicycles, especially eBikes and high-end class road bikes, market inventories remained somewhat high.”

“In the North American market, although demand for bicycles was firm, market inventories remained higher than appropriate levels due to the supply adjustment of completed bicycles.”