Honma Golf Ltd. · HKEX:6858
Honma Golf — FY2025 Earnings Presentation
37 slides from Honma Golf's earnings presentation, June 2025
Slide 1: 2024/2025 Annual Results
2024/2025 ANNUAL RESULTS HONMA GOLF LIMITED (6858.HK) Jun. 2025 ONE OF THE MOST PRESTIGIOUS AND ICONIC BRANDS IN THE GOLF INDUSTRY
Slide 2: Disclaimer
DISCLAIMER You must read the terms, conditions, limitations, notifications, restrictions, acknowledgments and representations in the following (the “Terms”) before reading or making any other use of this presentation. In reading or making any other use of this presentation, you acknowledge and agree
Slide 3: Contents
CONTENTS 01 HONMA 2024/2025 ANNUAL RESULTS 02 PERFORMANCE OVERVIEW 03 BUSINESS HIGHLIGHT 04 FINANCIAL REVIEW 05 APPENDIX 03
Slide 4: Honma
2024/2025 ANNUAL RESULTS 01 HONMA
Slide 5: #1 Premium Golf Brand Founded in Japan in 1959
#1 PREMIUM GOLF BRAND FOUNDED IN JAPAN IN 1959 68 YEARS OF DEDICATIONS TOWARDS QUALITY AND CRAFTSMANSHIP THE ONLY VERTICALLY INTEGRATED GOLF COMPANY IN THE WORLD 2024/2025 ANNUAL RESULTS IN-HOUSE R&D AND COMPREHENSIVE CLUB AND EXTENSIVE DTC + CLUB MANUFACTURING NON-CLUB PRODUCT PORTFOLIO DISTRIBUTIO
Slide 6: Performance Overview
2024/2025 ANNUAL RESULTS 02 OVERVIEW PERFORMANCE
Slide 7: Key Financials, Full Year Ended 31 Mar 2025
In FY2025, the golf industry witnessed increased market competition and adjustments in both participation and purchase intent resulting from economic instability and slowdowns in certain parts of the world. Against these unfavorable market conditions, HONMA re-strategised its distribution channel to
Slide 8: Performance Overview by Market
PERFORMANCE OVERVIEW BY MARKET FY25 NET SALES: JPY 21,672 MM / USD 142.9 MM, -17.4% YOY (COMPARABLE -18.9%) • Both Japan and Korea showed sales decline, mainly attributable to planned channel optimization with a view to focus on larger and more relevant retailers in both countries. This has led to t
Slide 9: Performance Overview by Product Category
PERFORMANCE OVERVIEW BY PRODUCT CATEGORY FY25 NET SALES: JPY 21,672 MM / USD 142.9 MM, -17.4% YOY (COMPARABLE -18.9%) GOLF CLUBS • Revenue from Tour World (TW) golf club rose by 59.2%, thanks to the NET SALES -17.5% TO JPY 15,067 MILLION / 99.4 USD MM successful launching of TW767. Revenue from BeZe
Slide 10: Performance Overview by Channel
PERFORMANCE OVERVIEW BY CHANNEL FY25 NET SALES: JPY 21,672 MM / USD 142.9 MM, -17.4% YOY (COMPARABLE -18.9%) NET SALES MIX BY CHANNEL DIRECT-TO-CONSUMER CHANNELS % NET SALES +2.8% TO 11,263 JPY MILLION / 68.6 USD MM GROSS MARGIN +7.9PP TO 64.8% 48.0% • Sales from Mainland China +11.0% 94 2024/2025 A
Slide 11: Business Highlights
2024/2025 ANNUAL RESULTS 03 BUSINESS HIGHLIGHTS
Slide 12: Honma Growth Strategy: Single brand, Multi-categories & Asia-focused
HONMA GROWTH STRATEGY: Single brand, Multi-categories & Asia-focused THE GROUP STRATEGICALLY FOCUSES ON THE DEVELOPMENT OF ITS HOME MARKETS IN ASIA AND THE MARKETING OF ITS EXQUISITE PRODUCT OFFERINGS TARGETING SUPER-PREMIUM AND PREMIUM-PERFORMANCE SEGMENTS. the THREE PILLARs of HONMA’s GROWTH STRAT
Slide 13: Product: Exquisite portfolio combining Japanese craftsmanship with innovative technology
PRODUCT: exquisite portfolio combining Japanese craftsmanship with innovative technology FOCUSING ON SUPER-PREMIUM AND PREMIUM-PERFORMANCE CONSUMER SEGMENTS SUPER-PREMIUM PREMIUM-PERFORMANCE OTHER CLUB PRODUCTS PUTTERS, COUNTRY SPECIFIC MODELS, SPECIAL EDITIONS BERES 7S TW767 MECHANIC Putters Launch
Slide 14: Product: Unique Club Portfolio
PRODUCT: Unique CLUB PORTFOLIO representing Japanese craftsmanship and innovative technology FOCUSING ON SUPER-PREMIUM AND PREMIUM-PERFORMANCE CONSUMER SEGMENTS • Club sales grew robustly by 20.7% in Japan for the year ended 31 March 2025. • TW767 was activated in November 2024 and received positive
Slide 15: Product: Continued pivoting sales growth in golf balls
PRODUCT: Continued pivoting sales growth in golf balls UPWARD RETAIL PRICE ADJUSTMENT TO FURTHER STRENGTHEN BALL’S PRODUCT PYRAMID • Golf ball sales declined by 31.2% due to a sharp decline in Japan -37.2%, following fierce market competition and upward retail price adjustment to cope with Japanese
Slide 16: Product: Nurturing apparel business to build a leading golf lifestyle brand
PRODUCT: Nurturing apparel business to build a leading golf lifestyle brand APPAREL COLLECTION CATERING TO GOLFERS ‘ ON-COURSE AND OFF-COURSE REQUIREMENTS APPAREL SALES -0.7% YOY TO JPY 3,136 MILLION, GROSS MARGIN +9.9 pp TO 53.4% • Despite total reduction in number of stors, sales from mainland Chi
Slide 17: Channel: 360-degree brand experience built into new retail space
CHANNEL: 360-degree brand experience built into new retail space and environments DIRECT-TO-CONSUMER CHANNELS ACT AS BRAND EXPERIENCE HUBS ACROSS ALL MARKETS • Sales from self-operated stores +2.8% to JPY 11,263 million • DTC revenue from mainland China +11.0% • 94 self-owned stores, net decrease by
Slide 18: Channel: Further expanding digital eco-system and private sphere
CHANNEL: Further expanding digital eco-system and private sphere to boost consumer loyalty FUELED BY UP-TO-DATE CONTENT MARKETING ON SOCIAL MEDIA AND CRM PLATFORMS E-COMMERCE SALES GREW BY 6.3% T-MALL FLAGSHIP STORE US E-COMMERCE SITE JAPAN +10.1%, CHINA +6.9%, TAIWAN +76.2% DRIVEN BY ACCELERATED IN
Slide 19: Marketing: Re-defining Honma as a premium golf lifestyle brand
MAKETING: Re-defining HONMA as a dynamic, relevant and premium golf lifestyle brand CONTINUOUSLY DRIVE BRAND AWARENESS ACROSS ALL MARKETS DIGITALIZED CONTENT MARKETING THROUGH RELAUNCHED GLOBAL WEBSITE & SOCIAL MEDIA PLATFORMS RELEVANT TO EACH MARKET • Frequently updating digital marketing content o
Slide 20: Marketing: Customer Events
MAKETING: Re-defining HONMA as a dynamic, relevant and premium golf lifestyle brand CONTINUOUSLY DRIVE BRAND AWARENESS ACROSS ALL MARKETS CUSTOMER EVENTS 3,655 EVENTS, 59,611 PARTICIPANTS N0. OF EVENTS +2.6%, NO. OF PARTICIPANTS PER EVENT +9.2% • Customer events are important customer touch points f
Slide 21: Marketing: Sponsoring Professional Players
MAKETING: Re-defining HONMA as a dynamic, relevant and premium golf lifestyle brand CONTINUOUSLY DRIVE BRAND AWARENESS ACROSS ALL MARKETS SPONSORING 9 PROFESSIONAL PLAYERS PLUS A WIDE NETWORK OF HONMA BRAND AMBASSADORS AND COACHES • Renewed endorsement strategy to recruit younger and uprising athlet
Slide 22: Marketing: Brand PR & Media Exposure
MAKETING: Re-defining HONMA as a dynamic, relevant and premium golf lifestyle brand CONTINUOUSLY DRIVE BRAND AWARENESS ACROSS ALL MARKETS OTHER BRAND PR & MEDIA EXPOSURE • Actively reinforcing HONMA’s brand image through continued media exposure and collaboration with brand ambassadors and social ce
Slide 23: Financial Review
2024/2025 ANNUAL RESULTS 04 REVIEW FINANCIAL
Slide 24: Short-term sales fluctuations brought by distribution reshuffle
Short-term sales fluctuations brought by distributions reshuffle in main markets NET SALES GROSS PROFIT & GROSS MARGIN JPY MM JPY MM - 17.4 28,971 29,495 % 26,223 15,686 -12.3% 14,988 21,672 13,433 11,784 +3.2pp 54.1% 54.4% 2024/2025 ANNUAL RESULTS 50.8% 51.2% FY2022 FY2023 FY2024 FY2025 FY2022 FY20
Slide 25: Continued OPEX optimization
Continued OPEX optimization to resource to win TO ENHANCE AS WELL AS TO MITIGATE NEGATIVE IMPACT FROM GLOBAL ECONOMIC UNCERTAINTY SG&A EXPENSES BRIDGE SG&A EXPENSES BREAKDOWN JPY MM AS % OF SALES 228 143 21 11,184 118 156 51.6% 10,571 -53 . 3pp + 11 3.1% 2024/2025 ANNUAL RESULTS 6.2% 40.3% 2.7% 7.1%
Slide 26: Healthy balance sheet and strong operating cashflow
Healthy balance sheet and strong operating cashflow NET OPERATING CASH FLOW CASH and CASH EQUIVALENTS JPY MM JPY MM +1.5% +4.4% 5,916 16,617 17,350 5,416 5,497 14,455 14,085 3,676 2024/2025 ANNUAL RESULTS FY2022 FY2023 FY2024 FY2025 FY2022 FY2023 FY2024 FY2025 INTEREST-BEARING LIABILITIES INTEREST-B
Slide 27: Continuously improving working capital efficiency
Continuously improving working capital efficiency RECEIVABLES TURNOVER DAYS (1) PAYABLES TURNOVER DAYS (1) INVENTORY TURNOVER DAYS (1) DAYS DAYS DAYS +13 days 66 -6 days 321 315 54 53 299 2024/2025 ANNUAL RESULTS 47 +6 days 39 34 209 243 243 38 21 23 52 56 49 FY2023 FY2024 FY2025 FY2023 FY2024 FY202
Slide 28: Appendix
2024/2025 ANNUAL RESULTS 05 APPENDIX
Slide 29: Business Review by Market: Japan
BUSINESS REVIEW BY MARKET HOME MARKET JAPAN STEADY AND QUALITY GROWTH IN MULTIPLE PRODUCT MARKET CATEGORIES FOLLOWING FURTHER MARKET REOPENING • 2nd largest golf equipment market in the world 2.9% 1.9% • Total golf product market size approximates to USD 1.7 billion in 2021 (1) % of Total Sales • 2,
Slide 30: Business Review by Market: Korea
BUSINESS REVIEW BY MARKET HOME MARKET KOREA ONGOING CHANNEL OPTIMIZATION FOR MARKET BETTER PREPARATION ON PREMIUN- PERFORMANCE SEGMENT EXPANSION • Fast growing and under-penetrated market • 3rd largest golf market in the world with USD 3.9 billion golf apparel sales % of Total Sales 2.9% 1.9% and US
Slide 31: Business Review by Market: China (incl. HK & Macau)
BUSINESS REVIEW BY MARKET HOME MARKET CHINA (INCL. HK & MACAU) MEANINGFUL MARKET APPAREL AND E-COMMERCE GROWTH ALBEIT WEAKENED CONSUMER SENTIMENT • Dynamic market with an exciting uptrend in outdoor sports • Emerging and fast growing golf industry 2.9% 1.9% • 478 golf courses, expanding indoor facil
Slide 32: Business Review by Market: North America
BUSINESS REVIEW BY MARKET NEW MARKET NORTH AMERICA BUILDING A UNIQUE DIRECT-TO-CUSTOMER MARKET DISTRIBUTION MODEL TO CAPTURE SUPER- PREMIUM AND PREMIUM-PERFORMANCE SEGMENT • Largest golf market in the world with USD 7.7 billion golf retail sales, accounting for 38.6% of the global golf economy, and
Slide 33: Business Review by Market: Europe
BUSINESS REVIEW BY MARKET NEW MARKET EUROPE IMPROVED SALES AND PROFIT MARGIN FOLLOWING MARKET CHANNEL ADJUSTMENT • Mature but fragmented golf market • England, Austria, Germany, France and Sweden in total accounts for % of Total Sales 2.9% 1.9% around 12% of the world’s golf equipment sales, which a
Slide 34: Consolidated P&L
CONSOLIDATED P&L For the twelve months ended 31 March Period-to- 2025 2024 period Change JPY % JPY % % (In thousands, except for percentages and per share data) Consolidated Statement of Profit or Loss Revenue 21,672,142 100.0 26,222,857 100.0 -17.4 Cost of sales -9,888,057 -45.6 -12,790,169 -48.8 -
Slide 35: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET Financial Position as at 2025.3.31 2024.3.31 JPY JPY (In thousands, except for percentages and per share data) Consolidated Statement of Financial Position Assets 2024/2025 ANNUAL RESULTS Non-current assets 10,319,591 8,894,695 Current assets 29,789,309 33,650,502 Total As
Slide 36: Consolidated Cash Flows
CONSOLIDATED CASH FLOWS For the twelve months ended 31 March 2025 2024 JPY JPY 2024/2025 ANNUAL RESULTS (In thousands, except for percentages and per share data) Cash and cash equivalents at the beginning of year 16,617,120 14,084,742 Net cash flows generated from operating activities 5,496,641 5,41
Slide 37: For more inquiries, please contact ir@honma.hk
For more inquiries,Please contact ir@honma.hk