Shimano Reports 45% Sales Increase in 2021

Shimano, Inc. reported sales in 2021 increased 44.6 percent from the previous year to ¥546,515 million.

Operating income increased 79.3 percent to ¥148,287 million, ordinary income increased 87.3 percent to ¥152,562 million, and net income increased 82.7 percent to ¥115,937 million.

Shimano said in a statement, “During fiscal year 2021, while restrictions on activities were eased along with the progress of the COVID-19 vaccinations around the world, with signs of changes starting to appear in people’s lifestyles in the post-COVID-19 society, the pace of economic recovery varied from region to region due to tightening of global logistics, semiconductor shortages, sharp rises in raw material and energy prices, as well as uncertainties caused by the infection spread of new variants and other factors.

”In Europe, while the normalization of economies progressed, with steady economic expansion led by personal consumption, slow supply of raw materials and soaring energy prices dampened consumer sentiment and purchasing activities.

”In the U.S., although economic activities are on track for recovery, led by personal consumption backed by a rebound from suppressed consumption in the COVID-19 pandemic as well as economic measures, the infection spread of new variants weighed on consumer sentiment.

”In Japan, signs of economic recovery began to appear amid repeated restrictions on activities and easing of them by COVID-19 measures, but the pace of recovery in personal consumption was slow.

”In this environment, supply chains were disrupted, and some of the Shimano Group’s factories experienced temporary shutdown due to lockdown. However, interest in and demand for bicycles and fishing continued to be high, and the Shimano Group increased production capacity at the factories in Japan and overseas.”

Bike Components Sales Climb 49 Percent
Shimano’s bike components sales increased 49.0 percent from the previous year to ¥443,678 million, and operating income increased 82.7 percent to ¥125,146 million.

Shimano said, “Demand for mid- to high-end bicycles remained at high levels due to the global cycling boom, triggered by the spread of COVID-19, but some markets began to settle down in the second half of fiscal year 2021.

“In the European market, high demand for bicycles and bicycle-related products continued, backed by government policies to promote bicycles in response to growing environmental awareness. Market inventories of completed bicycles remained at low levels despite signs of improvement.

“In the North American market, while demand for bicycles continued to be high, market inventories, centering around entry-class bicycles, began to approach appropriate levels.

“In the Asian and South and Central American markets, the cycling boom showed signs of cooling off in the second half of fiscal year 2021, and market inventories of mainstay entry-class bicycles reached appropriate levels.

“In the Japanese market, despite inventory shortages of new high-end road bikes and entry-class road bikes with high demand, retail sales of community bicycles stagnated, resulting in market inventories slightly higher than appropriate levels.

“Under these market conditions, while the Shimano Group further increased production, order-taking was brisk for a wide range of products, including the two new high-end models of road bikes, Dura-Ace and UltegraL, and sport e-bike components, Shimano Steps series.”

Fishing Tackle Sales Climb 28 Percent
Fishing Tackle segment sales rose 28.1 percent from the previous year to ¥102,388 million, and operating income increased 62.1 percent to 23,120 million.

Shimano said, “Fishing was welcomed by a wide range of users as an activity that could avoid people crowding, and the fishing tackle market thrived and maintained high demand around the world.

“In the Japanese market, although there were signs of a lull in the fishing boom, sales remained robust, led by salt lure-related products, as the situation of COVID-19 started to settle down, and consumer appetite increased, in addition to the good weather.

“Overseas, in the North American market, demand remained high with firm sales, backed by stable weather and buoyant markets.

“In the European market, while demand started to cool off in some regions, sales remained solid as a result of widespread use of vaccinations and progress in online sales.

“In the Asian market, sales remained favorable due to strong demand for high price range products, especially in the Chinese market where the impact of COVID-19 was small. In the Australian market, sales remained favorable, supported by strong demand, despite some regions being put under lockdown

“Under these market conditions, spinning reels BB-X Techinium, Ultegra and Twin Power SW, bait reels Antares DC and SLX MGL and carp rods Tribal TX series were well-received in the market.”

Outlook
For the first half of 2022, Shimano expects sales to reach ¥293,200, up 10.8 percent year-over-year; operating profits to reach ¥81,300 million, up 16.3 percent; and net profits to reach ¥60,000, up 7.1 percent.

For the full year, sales are expected to reach ¥580,000 million, up 6.1 percent; operating profits to reach ¥580,000 million, up 6.1 percent; and net profit, ¥117,500, up 1.3 percent.

For a complete look at Shimano’s Financial Resul-ts FY2021-Q4 click here.