Honma Golf Ltd. · HKEX:6858
Honma Golf — H1 FY2025 Earnings Presentation
37 slides from Honma Golf's earnings presentation, November 2024
Slide 1: 2024/2025 Interim Result
2024/2025 INTERIM RESULT HONMA GOLF LIMITED(6858.HK) NOV. 2024 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 1.HONMA 2024/2025 INTERIM RESULTS 2.PERFORMANCE OVERVIEW 3.BUSINESS HIGHLIGHTS 4.FINANCIAL REVIEW 5.APPENDIX
Slide 4: Honma
2024/2025 INTERIM RESULTS 01 HONMA
Slide 5: Premium golf brand, vertically integrated
#1 PREMIUM GOLF BRAND FOUNDED IN 1959, JAPAN 67 YEARS OF DEDICATIONS TOWARDS QUALITY AND CRAFTSMANSHIP THE ONLY VERTICALLY INTEGRATED GOLF COMPANY IN THE WORLD 2024/2025 INTERIM RESULTS IN-HOUSE R&D AND COMPREHENSIVE CLUB AND EXTENSIVE DTC + CLUB MANUFACTURING NON-CLUB PRODUCT PORTFOLIO DISTRIBUTION
Slide 6: Performance Overview
2024/2025 INTERIM RESULTS 02 OVERVIEW PERFORMANCE
Slide 7: Key financials for half year ended 30 Sep 2024
Since early 2023, the golf industry has seen downward adjustments in both no. of rounds played and purchase interest of golfers at different stages and across different markets. For the six months ended 30 September 2024, the Company continued to pivot sales growth from its direct-to-consumer channe
Slide 8: Net sales mix and growth by market
• Revenue from Japan marginally decreased by 0.4% while the Group focused on self-operated channels and gradually moved away from loss-making and low-efficiency wholesale channels. Such strategy resulted in a 7.6% decrease in wholesale business in Japan, while retail business in Japan increased by 5
Slide 9: Net sales by product category
• Although facing multiple challenges within the industry, revenue from BERES GOLF CLUBS golf clubs rose by 18.4% in Japan and by 49.4% in Southeast Asia, following NET SALES -33.3% TO JPY 6,674 MILLION / 44.0 USD MM the launch of BERES 09 in early 2024, reconfirming HONMA’s strong brand GROSS MARGI
Slide 10: Net sales by channel
• Sales from DTC channels surpassed that of distributors. In the mid-to-long term, DTC channels will remain a key focus for the Group's expansion. NET SALES MIX BY CHANNEL DIRECT-TO-CONSUMER CHANNELS % NET SALES +6.5% TO 5,508 JPY MILLION / 36.4 USD MM GROSS MARGIN +1.2PP TO 61.9% • Net -2 locations
Slide 11: Business Highlights
2024/2025 INTERIM RESULTS 03 BUSINESS HIGHLIGHTS
Slide 12: Three pillars of Honma's growth strategy
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 STRATEGY PRODUCT CHANNEL BRANDING AND CONSUMER ENGAGEMENT • • Continuously
Slide 13: Focusing on super-premium and premium-performance segments
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 FUJI Putters Launched in Nov 2024 Launched in Nov 2024 Launched in Nov 2024 2024/2025 INTERIM RESULTS CATERING T
Slide 14: Focusing on super-premium and premium-performance segments
FOCUSING ON SUPER-PREMIUM AND PREMIUM-PERFORMANCE CONSUMER SEGMENTS • The newly launched BERES 09 and BeZEAL 3 have achieved great success, reconfirming HONMA’s strong brand equity, and its ability to withstand economic challenges. • In 1H FY2025, golf club sales -33.3% to JPY 6,674 million, mainly
Slide 15: Upward retail price adjustment for golf balls
UPWARD RETAIL PRICE ADJUSTMENT TO FURTHER STRENGTHEN BALL’S PRODUCT PYRAMID • Golf ball sales declined by 17.1% YOY to JPY 910 million; gross margin decreased by 1.2PP to 27.8% following continued currency depreciation and cost pressure. • Sales from golf ball declined due to upward retail price adj
Slide 16: Apparel collection
APPAREL COLLECTION CATERING TO GOLFERS ‘ ON-COURSE AND OFF-COURSE REQUIREMENTS APPAREL SALES +6.1% YOY TO JPY 1,341 MILLION, GROSS MARGIN +29.1 pp TO 57.2% • Sales from mainland China +15.9%; sales from SEA +186.1%, mainly due to entry into Indonesia and Malaysia • products catering to the distincti
Slide 17: Direct-to-consumer retail channels
DIRECT-TO-CONSUMER RETAIL CHANNELS ACT AS BRAND EXPERIENCE HUBS ACROSS ALL MARKETS • Sales from self-owned channels +6.5% to JPY 5,508 million • Retail sales from Japan +5.4%; sales from mainland China +13.0% • 93 self-owned stores, net decrease by 2; newly opened 3, all of which are in Asia 2024/20
Slide 18: E-commerce
FUELED BY UP-TO-DATE CONTENT MARKETING ON SOCIAL MEDIA AND CRM PLATFORMS E-COMMERCE SALES GREW BY 8.1% T-MALL FLAGSHIP STORE US E-COMMERCE SITE JAPAN +18.9%, CHINA +5.8%, TAIWAN +288.4% DRIVEN BY ACCELERATED INVESTMENT IN DIGITAL MARKETING WITH A FULL-CHANNEL APPROACH • E-commerce platforms in major
Slide 19: Driving brand awareness: digital content marketing
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 on HONMA’s global website as well as social platforms, such as Instagram, Facebook, W
Slide 20: Driving brand awareness: customer events
CONTINUOUSLY DRIVE BRAND AWARENESS ACROSS ALL MARKETS CUSTOMER EVENTS 1,910 EVENTS, 31,807 PARTICIPANTS N0. OF EVENTS +8.7%, NO. OF PARTICIPANTS PER EVENT +25.6% • Customer events are important customer touch points for HONMA • These events were mainly held on golf courses with dedicated fitters • B
Slide 21: Driving brand awareness: sponsored players
CONTINUOUSLY DRIVE BRAND AWARENESS ACROSS ALL MARKETS SPONSORING 8 PROFESSIONAL PLAYERS PLUS A WIDE NETWORK OF HONMA BRAND AMBASSADORS AND COACHES • Renewed endorsement strategy to recruit younger and uprising athletes in Asia with visible social media followings, so as to address and engage with th
Slide 22: Driving brand awareness: PR and media exposure
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 celebrities. 2024/2025 INTERIM RESULTS 22
Slide 23: Financial Review
2024/2025 INTERIM RESULTS 04 REVIEW FINANCIAL
Slide 24: Net sales, gross profit, EBITDA and net profit
NET SALES GROSS PROFIT & GROSS MARGIN JPY MM JPY MM 14,927 13,195 11,872 7,866 9,815 6,562 6,877 5,199 2024/2025 INTERIM RESULTS 1H FY2022 1H FY2023 1H FY2024 1H FY2025 1H FY2022 1H FY2023 1H FY2024 1H FY2025 Net Sales Gross Profit Gross Margin EBITDA NET PROFIT JPY MM JPY MM 3,183 4,644 4,702 3,087
Slide 25: SG&A expenses bridge and breakdown
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 55.7% 3.3% 7.0% 2024/2025 INTERIM RESULTS 39.2% 8.4% 2.0% 4.4% 9.9% 5.2% 6.7% 10.8% 9.4% 16.2% 11.5% 1H FY2024 1H FY2025 Employee Benefits Other Sellin
Slide 26: Operating cash flow, cash and interest-bearing liabilities
NET OPERATING CASH FLOW CASH and CASH EQUIVALENTS JPY MM JPY MM 3,702 4,024 17,038 16,660 18,055 3,256 3,277 3,251 12,971 2,576 2,284 2024/2025 INTERIM RESULTS 402 1H FY18 1H FY19 1H FY20 1H FY21 1H FY22 1H FY23 1H FY24 1H FY25 1H FY2022 1H FY2023 1H FY2024 1H FY2025 INTEREST-BEARING LIABILITIES INT
Slide 27: Receivables, payables and inventory turnover days
RECEIVABLES TURNOVER DAYS (1) PAYABLES TURNOVER DAYS (1) INVENTORY TURNOVER DAYS (1) DAYS DAYS DAYS 49 +15 days 335 -3 days 320 64 2024/2025 INTERIM RESULTS 292 46 48 236 255 -24 days 200 44 24 27 23 24 65 62 56 1H FY2023 1H FY2024 1H FY2025 1H FY2023 1H FY2024 1H FY2025 1H FY2023 1H FY2024 1H FY202
Slide 28: Appendix
2024/2025 INTERIM RESULTS 05 APPENDIX
Slide 29: Home market: Japan
HOME MARKET JAPAN STEADY AND QUALITY GROWTH IN MULTIPLE PRODUCT MARKET CATEGORIES FOLLOWING FURTHER MARKET REOPENING • 2nd largest golf equipment market in the world • Total golf product market size approximates to USD 1.7 billion in 2021 (1) 4.2% 2.7% % of Total Sales • 2,200 golf facilities, repre
Slide 30: Home market: Korea
HOME MARKET KOREA ONGOING CHANNEL OPTIMIZATION FOR BETTER MARKET 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 4.2% 2.7% and USD 1.1 billion golf equipmen
Slide 31: Home market: China (incl. HK & Macau)
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 4.2% 2.7% • 478 golf courses, expanding indoor facilities, around 1 million co
Slide 32: Home market: North America
HOME 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 USD 5.3 billion golf % of
Slide 33: New market: Europe
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 around % of Total Sales 4.2% 2.7% 12% of the world’s golf equipment sales, which approximates to USD 1 billi
Slide 34: Consolidated statement of profit or loss
For the six months ended 30 September Period-to- 2024 2023 period Change JPY % JPY % % (In thousands, except for percentages and per share data) Consolidated Statement of Profit or Loss Revenue 9,814,533 100.0 13,194,832 100.0 -25.6 Cost of sales -4,615,267 -47.0 -6,317,853 -47.9 -26.9 Gross profit
Slide 35: Consolidated statement of financial position
Financial Position as at 2024.9.30 2024.3.31 JPY JPY (In thousands, except for percentages and per share data) Consolidated Statement of Financial Position Assets 2024/2025 INTERIM RESULTS Non-current assets 9,642,883 8,894,695 Current assets 30,469,246 33,650,502 Total Assets 40,112,129 42,545,197
Slide 36: Cash flow summary
For the six months ended 30 September 2024 2023 JPY JPY 2024/2025 INTERIM RESULTS (In thousands, except for percentages and per share data) Cash and cash equivalents at the beginning of year 16,617,120 14,084,777 Net cash flows generated from operating activities 4,024,386 3,251,296 Net cash (used i
Slide 37: For more inquiries please contact
For more inquiries Please contact ir@honma.hk