Financial
Highlights
- Due to economic slowdown and challenges, increased competition within the industry, and weakened consumer confidence, the Group’s revenue for the Period decreased by 17.4% to JPY21,672 million (equivalent to USD142.9 million).
- Nonetheless, retail revenue grew by 11.0% and 8.9% respectively in Mainland China and Taiwan during the Period and revenue from Europe increased by 16.4%, rising from JPY361.8 million for the year ended 31 March 2024 to JPY421.0 million.
- Gross profit margin expanded by 3.2 percentage points, reaching 54.4%, following improvements in Japan’s gross margin command.
- Net operating cash flow increased by 1.5% to JPY5,497 million (equivalent to USD36.2 million).
For the year ended 31 March 2025, the golf industry witnessed increased market competition and adjustments in both participation and purchase intent resulting from economic slowdowns and challenges in certain parts of the world. Despite unfavorable market conditions, HONMA continued to implement its long-term business strategies by investing into its product development, distribution footprint and brand marketing efforts while carefully protecting its financial strength and cash flow.
Strategic
Focus
on
Super-Premium
and
Premium-Performance
Segments
Amidst
downward
adjustments
in
the
global
golf
industry,
HONMA
remained
focused
on
cultivating
its
home
markets
in
Asia
and
further
consolidated
and
streamlined
its
product
offerings
around
two
key
consumer
segments
–
super-premium
and
premium
–
performance.
HONMA
has
been
maintained
a
leading
and
strong
market
position
in
the
super-premium
segment
for
decades,
developing
and
selling
clubs
that
combine
Japanese
aesthetic
beauty
with
uncompromising
features.
The
premium-performance
segment,
which
is
dominated
by
avid
golfers,
has
enjoyed
the
strongest
growth
momentum
for
years
and
is
the
largest
in
terms
of
participation.
To
increase
its
penetration
into
both
segments,
HONMA
has
simplified
its
product
strategy.
This
includes
enriching
its
TOUR
WORLD
club
portfolio
with
a
performance
enhancement
series
and
renewing
its
classic
BERES
club
family
with
a
modern
and
sophisticated
design
approach
to
appeal
to
today’s
golfers.
Expanding
Product
Portfolio
in
Core
Segments
HONMA
derived
most
of
its
revenue
from
the
sales
and
distribution
of
golf
clubs.
During
the
Period,
golf
clubs
generated
70%
of
the
Group’s
total
revenue.
HONMA
remains
committed
to
apply
cutting-edge
technologies
and
artisan-style
Japanese
craftsmanship
to
the
design,
development,
and
manufacturing
of
a
comprehensive
range
of
exquisitely
crafted,
performance-driven
golf
clubs.
In addition to clubs, HONMA launched various golf ball products with its own patent and relaunched its apparel business to create a comprehensive range of golf products for golfers in the super-premium and premium-performance segments. These new product portfolios have generated stable revenue contributions over the past years and aim to meet the HONMA brand positioning and play preferences of its consumers.
Driven by continued price management and enhanced product offerings, HONMA’s overall gross profit margin expanded by 3.2 percentage points year-on-year, despite increases in raw material prices and unfavorable currency movements. Specifically, the gross profit margins for golf balls, apparel, and accessories rose by 4.0, 9.9, and 22.7 percentage points year-on-year respectively.
Reprioritizing
Growth
Strategies
and
Enhancing
Financial
Performance
in
North
America
and
Europe
HONMA
made
constant
upgrade
of
its
retail
presence
with
top-tier
locations,
revitalized
visual
identity,
fresh
design
concepts,
and
enhanced
customer
experiences.
As
a
result,
sales
from
self-owned
channels
increased
2.8%
year-on-year
to
JPY
11,263
million.
North America and Europe continued to enjoy the largest golfer demographics, albeit with varied market conditions. For the year ended 31 March 2025, HONMA reprioritized its distribution strategy in these regions by focusing on a select group of premier accounts that best represent HONMA’s tradition and commitment to the super-premium and premium-performance consumer segments. Concurrently, HONMA optimized its organisational set up and cost base in both markets to ensure stable near- to mid-term growth amidst social, economic, and financial uncertainties.
As part of this strategic adjustment, HONMA opened 26 points of sales (“POS“) in North America during the year, bringing the total to 370 as of 31 March 2025. In Europe, HONMA opened seven new POS, expanding its network to 136 locations.
Re-defining
the
HONMA
brand
HONMA
initiated
various
programs
to
enhance
its
global
brand
positioning
and
communication
with
target
consumers.
To
re-define
the
HONMA
brand
as
a
dynamic,
relevant,
and
premium
golf
lifestyle
brand
among
internet-savvy
younger
golfers,
HONMA
has
consistently
elevated
its
global
website
and
social
media
platforms
with
regular
and
relevant
visual
and
content
updates
to
continuously
promote
brand
and
product
awareness
and
appeal
to
younger
golfers.
With a full-channel approach and a boost in digital marketing investment, HONMA’s e-commerce sales rose 6.3% year-on-year while Japan and China recorded a year-on-year increase of 10.1% and 6.9% rise.
To create an end-to-end digital ecosystem around the redefined brand and golfers in the super-premium and premium-performance segments, HONMA has implemented customer relationship management (CRM) systems in multiple markets. The Group has also added advanced e-commerce capabilities and consumer-centric custom tools to provide consumers with the ultimate 360-degree brand experience. These initiatives strengthen HONMA’s direct-to-consumer communication and are expected to eventually increase sales both online and offline.
Business
Outlook
In
the
coming
years,
HONMA
will
continue
to
execute
its
long-term
growth
strategy
to
establish
itself
as
a
world-leading
golf
lifestyle
company,
leveraging
HONMA’s
brand
legacy,
expanding
distribution
network,
and
innovative
technologies,
and
traditional
Japanese
craftsmanship.
Key
focus
areas
include
sustainably
enhancing
HONMA’s
brand
value
to
foster
customer
loyalty,
increasing
market
share
in
home
markets
by
maintaining
its
leading
position
in
the
super-premium
segment,
while
making
inroads
into
the
fast-growing
premium-performance
segment.
HONMA
aims
to
anchor
sustainable
growth
in
North
America
and
Europe
through
an
updated
product
and
distribution
strategy.
Additionally,
HONMA
will
nurture
complementary
non-club
product
lines
to
offer
customers
a
complete
golf
lifestyle
experience
and
pursue
product
innovation
and
development
to
meet
the
latest
market
trends.
Mr. LIU Jianguo, Chairman of the Board, President, and Executive Director of HONMA Golf Limited, stated: “Despite market fluctuations, HONMA has demonstrated remarkable resilience, maintained strong gross margins, and expanded our direct-to-consumer channels. Our strategic focus on the super-premium and premium-performance segments, combined with enhanced digital capabilities and an optimized distribution network, has positioned us well for future growth and enabled us to deliver better returns for our stakeholders. “
Hashtag: #HONMAGolf
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