Last February, Shimano still forecast a 20% drop in net sales for 2023 for the company as a whole. This week Shimano adjusted that forecast to a 16,9% decline in net sales.
Source: bike-eu.com
However, Shimano raises concerns about 2023 market challenges amid rising interest rates and other monetary policies in its core markets, as well as the prolonged turmoil in Ukraine. “All this has led to a slowdown in sales, while market inventories have generally remained high, despite continuous adjustments in supply and demandShimano wrote in its financial statement released this week.
Performance of bicycle components
For the first quarter of this year, Shimano reports a drop in operating profit of 26,4% to JPY 28.009 million (€190,2 million), while ordinary profit decreased by 27,4% to 28.596 million of JPY (192,2 million €) and the net profit attributable to shareholders of the parent company decreased by 29,7% to 20.203 million yen (137,2 million euro).
Specifically for bike components, Shimano reports a net sales result down 16,8% compared to the same period of the previous year to 98.298 million yen (667,4 million euros), while operating profit decreased by 31,8% to 22.123 million yen (150,2 million euros).
Forecast 2023
According to Shimano, interest in bicycles continues to be high in Europe and retail sales of complete bikes, especially e-bikes, have been robust. Market inventories generally remained at high levels, although some high-end models were in short supply. At the same time, sales in North America remained weak and market inventories remained at a consistently high level.
In the markets of Asia and Central and South America, while interest in bicycles remained stable, sales remained somewhat sluggish as consumer confidence fell due to currency depreciation and rising inflation . However, in the Chinese market, sales have remained strong, especially for road bikes, due to the growing momentum of outdoor sports cycling.
