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In its centennial year, Shimano hits record revenues and earnings

Published February 8, 2022

OSAKA, Japan (BRAIN) — In the year the company celebrated its 100th anniversary, Shimano Inc.’s sales and operating income hit an all-time record, driven primarily by its business in the bike industry.

Company-wide, Shimano's sales last year were up 44.6% over 2020, while operating income was up 79.3%.

In Shimano’s bike division, net sales were up 49.0% to 443.7 billion yen ($3.8 billion) and operating income increased 82.7% to 125.2 billion yen.

Much of the increase came in the first half of the year, when 2021 sales were being compared to the first half-year of the pandemic when some operations came to a standstill. 

However, even compared to pre-pandemic years, Shimano’s 2021 performance was remarkable. The 2021 bike-related sales were up 41% over 2015, its previous record year, for example.

“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,” the company said in its full-year report Tuesday.

"In the European market, high demand for bicycles and bicycle-related products continued, backed by governments’ 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.“

Sales in Shimano's fishing tackle division were up 28.1% to 102.4 billion yen. Fishing accounted for 19% of Shimano's business. Non-bike and fishing business totaled 447 million yen, or about a tenth of one percent of Shimano's total business.

Shimano's bike-division sales, in billions of yen:
2021: 443.7
2020: 297.8
2019: 290.0
2017: 270.2
2016: 259.5
2015: 314.0
2014: 274.0
2013: 217.3
2012: 198.2
2011: 177.3
2010: 169.4
2009: 144.7
2008: 185.9
2007: 157.8

Company-wide sales were 546,515 million yen, up 44.6% over the prior year. Operating income company-wide was 148,287 million yen, up 79.3% over 2021. Earnings per share were 1,252.62 yen, up from 684.71 yen per share in 2020. 

Shimano is forecasting a 6.1% increase in sales in fiscal 2022, with company-wide sales hitting 580 billion yen and operating income 161 billion yen. 

“There is concern that the global economy will be weighed down by the infection spread of new, highly infectious variants, and that shortages of semiconductors and electronic components, rising prices of raw materials, tight logistics, a labor shortage, and other problems may further worsen. However, interest in outdoor leisure activities that can avoid people crowding is expected to continue,” the company said.

Topics associated with this article: Earnings/Financial Reports

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