Shimano (7309) Q2 2025 earnings summary

Executive summary

• FY2024 consolidated sales forecast revised to ¥450 billion, up 7.1% year-over-year, with operating income projected at ¥66 billion and net income attributable to owners at ¥77 billion.

• Net sales for the first half of FY2024 declined 17.6% year-over-year to ¥216,887 million, with operating income down 42.6% and net income attributable to owners of parent down 13.2%.

• Bicycle Components segment remains the largest contributor, with notable growth in China and North America, while Europe shows a decline.

• Fishing Tackle segment sales expected to rise 7.4% year-over-year, with stable overseas demand.

• Despite challenges, comprehensive income rose 15.4% year-over-year to ¥109,195 million, supported by foreign currency translation gains.

Financial highlights

• FY2024 sales forecast at ¥450 billion, up from ¥420 billion in the previous schedule and ¥474.4 billion in FY2023.

• Operating income margin projected at 14.7%, with operating income of ¥66 billion, up 42% from the previous schedule.

• Net income attributable to owners forecast at ¥77 billion, a 25.9% increase year-over-year.

• Gross profit margin expected at 38.1%, slightly down from 38.5% in FY2023.

• Basic EPS projected at ¥1,408.22, up from ¥1,252.62 in FY2023; first half EPS at ¥487.49, down from ¥556.81.

Outlook and guidance

• FY2024 full-year net sales forecast revised upward to ¥450,000 million (+5.1% year-over-year), with operating income projected at ¥66,000 million (+21.1%).

• Net income attributable to owners of parent forecast at ¥77,000 million (+25.9%), and basic EPS at ¥862.01.

• Full-year dividend forecast raised to ¥309 per share, up ¥24 from previous guidance.

• Management expects continued growth in North America and China for Bicycle Components, offsetting declines in Europe.

• Uncertainty remains due to persistent high market inventories and delayed inventory resolution, especially in Europe.