HONG KONG SAR -
Media OutReach Newswire - 26 June 2025 -
HONMA Golf Limited ("HONMA"; together with its subsidiaries, the
"Group"; HKEx stock code: 6858), one of the world's most prestigious
golf brands, announces its consolidated annual results for the year
ended 31 March 2025 (the "Period").
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).
Major Achievements
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. "