Shimano announced on Tuesday that its bicycle division's full-year sales in 2023 were 364.679 billion yen ($2.42 billion), a year-on-year decrease of 29.5%. The division's operating income fell 55% to 65.251 billion yen.
The company said of the global market: "Although the popularity of bicycles has cooled down, as a long-term trend, people's interest in bicycles remains high. On the other hand, despite the continuous adjustment of supply and demand, market inventory has generally remained In a high position."
The company said: "Sales were strong in Germany and the Benelux countries, and road bike sales were also good in China. In North America, despite strong interest in bikes, retail sales of finished bikes remained weak, partly due to The craze has dissipated, leaving market inventories at a high level."
Bicycle division sales in the fourth quarter were 75.236 billion yen, compared with 132.782 billion yen in the fourth quarter of 2022, a decrease of 43% (see Bicycle division quarterly sales chart below).
Sales of fishing equipment, another major division of Shimano, fell 1.6% year-on-year. Sales of the entire company dropped from 628.909 billion yen in 2022 to 474.362 billion yen, a decrease of 24.6%.
Shimano recorded a net profit of 61.142 billion yen, a decrease of 52.3% from 2022.
Looking ahead, Shimano pointed to risks posed by war in Ukraine and the Middle East that could disrupt global supply chains. It also said the U.S. presidential election "could affect the economy." The company expects sales of the entire company in fiscal 2024 to be 4.2 billion yen, a decrease of 11.5% from 2023. The company expects net profit to be 54 billion yen, down 11.7% from 2023.
Shimano reported that the 11-speed crank replacement program brought its full-year loss to 17.625 billion yen, just 551,000 yen more than the planned cost for 2023 in its third-quarter financial report.
