HONMA Golf Announces Fiscal Year 2024/25 Annual Results

Gross Profit Margin and Net Operating Cash Flow Continue to Improve Amid Challenging Market Environment

HONG KONG SAR – Media OutReach Newswire – 26 June 2025 – HONMA Golf Limited (“HONMA”; collectively with its subsidiaries, the “Group”; HKEx stock code: 6858), a prominent entity in the global golf sector, has disclosed its consolidated annual results for the fiscal year ending 31 March 2025 (the “Period”).

Financial Highlights

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• In the face of economic downturn and heightened competition, the Group’s revenue for the Period decreased by 17.4% to JPY21,672 million (approximately USD142.9 million).
• In contrast, retail sales rose by 11.0% in Mainland China and 8.9% in Taiwan, while revenue from Europe soared by 16.4%, increasing from JPY361.8 million in the previous year to JPY421.0 million.
• The gross profit margin improved by 3.2 percentage points to 54.4%, driven by enhancements in Japan’s gross margin.
• Net operating cash flow increased by 1.5%, reaching JPY5,497 million (about USD36.2 million).

Major Achievements
During the fiscal year ending 31 March 2025, the golf industry encountered increased competition and changes in consumer engagement due to economic pressures in various regions. Nevertheless, HONMA continued to execute its long-term business strategies by investing in product innovation, expanding distribution channels, and enhancing brand marketing, while maintaining its financial stability and cash flow.

Emphasis on Super-Premium and Premium-Performance Markets
Amidst global market declines, HONMA strategically focused on its core Asian markets while consolidating its product offerings in the super-premium and premium-performance segments. For decades, HONMA has established a strong presence in the super-premium sector, crafting clubs that embody Japanese design sophistication and superior quality. The premium-performance category, popular among avid golfers, has consistently demonstrated notable growth and accounts for the largest share of participation. To better cater to these markets, HONMA refined its product strategy, expanding its TOUR WORLD club series and modernizing its traditional BERES line to resonate with today’s golfers.

Broadening Product Lines in Core Sectors
HONMA primarily derives revenue from golf club sales, which constituted 70% of total revenue during the Period. The company remains committed to merging advanced technology with traditional Japanese craftsmanship to offer a range of high-quality, performance-oriented golf clubs.

In addition, HONMA launched new golf ball products featuring proprietary technology and revitalized its apparel line, creating a comprehensive selection that caters to golfers in the super-premium and premium-performance categories. This diversified product array has consistently contributed to stable revenue streams, aligning with HONMA’s brand identity and consumer preferences.

Through effective pricing strategies and superior product offerings, HONMA achieved a 3.2 percentage point year-on-year increase in overall gross profit margin, even amidst rising raw material costs and unfavorable currency fluctuations. Notably, gross profit margins for golf balls, apparel, and accessories improved by 4.0, 9.9, and 22.7 percentage points year-on-year, respectively.

Reassessing Growth Strategies for North America and Europe
HONMA continually enhanced its retail footprint through prominent locations, refreshed branding, innovative design concepts, and improved customer experiences. Consequently, sales through owned channels increased by 2.8% year-on-year to JPY 11,263 million.

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North America and Europe continue to host the largest golfer demographics, albeit under varying market conditions. For the fiscal year ending 31 March 2025, HONMA modified its distribution strategy by focusing on a select group of premier accounts that reflect HONMA’s commitment to the super-premium and premium-performance segments. Concurrently, HONMA streamlined its operational structure and cost base in these markets to maintain steady growth amid social, economic, and financial variability.

As part of this strategic refinement, HONMA opened 26 points of sale (“POS”) in North America this year, bringing the total to 370 as of 31 March 2025, and added seven new POS in Europe, expanding its total network to 136 locations.

Re-defining the HONMA Brand
HONMA has launched several initiatives aimed at enhancing its global brand presence and improving communication with target audiences. To rebrand HONMA as a vibrant, relevant, and premium golf lifestyle brand for tech-savvy younger golfers, the company has consistently updated its global website and social media channels with engaging visuals and content to boost brand awareness and attract younger golfers.

Through a comprehensive marketing strategy and increased digital investment, HONMA’s e-commerce sales rose by 6.3% year-on-year, with Japan and China experiencing year-on-year growth of 10.1% and 6.9%, respectively.

To establish a comprehensive digital ecosystem for the redefined brand and golfers in the super-premium and premium-performance categories, HONMA has implemented customer relationship management (CRM) systems across various markets. The Group has also enhanced e-commerce capabilities and consumer-focused tools to provide an exceptional 360-degree brand experience. These efforts aim to strengthen direct-to-consumer engagement and are anticipated to boost sales in both online and offline channels.

Business Outlook
Looking forward, HONMA will continue to implement its long-term growth strategy to fortify its position as a leading golf lifestyle brand worldwide, leveraging its heritage, expanding distribution network, innovative technologies, and traditional Japanese craftsmanship. Key focus areas include sustainably enhancing brand value to foster customer loyalty, increasing market share in core markets by solidifying leadership in the super-premium segment, while also penetrating the rapidly growing premium-performance category. HONMA aims to establish sustainable growth in North America and Europe through revised product and distribution strategies, while also nurturing complementary non-club product lines to provide a holistic golf lifestyle experience and pursuing innovation to align with the latest market trends.

Mr. LIU Jianguo, Chairman of the Board, President, and Executive Director of HONMA Golf Limited, remarked: “Despite the market challenges, HONMA has demonstrated resilience, maintained solid gross margins, and expanded our direct-to-consumer channels. Our strategic focus on super-premium and premium-performance markets, combined with enhanced digital capabilities and an optimized distribution network, places us in a strong position for future growth and improved returns for our stakeholders.”

Hashtag: #HONMAGolf

The issuer is solely responsible for the content of this announcement.

About HONMA Golf Limited

HONMA is an esteemed and iconic brand in the golfing industry. Established in 1959, HONMA combines innovative technology with traditional Japanese craftsmanship to provide premium, high-tech, and high-performance golf clubs, balls, apparel, and accessories to golfers globally.

As the only fully vertically integrated golf company with extensive in-house design, development, and production capabilities, along with a broad retail presence in Asia, HONMA is uniquely positioned for continued growth within Asia and beyond, capitalizing on the resurgence of golfers in established markets such as the US and Japan, as well as increasing participation in emerging markets like Korea and China.

HONMA will celebrate its 68th anniversary in 2025. Recently, the company has actively pursued branding and marketing initiatives focused on redefining HONMA as a dynamic, relevant, and premium golf lifestyle brand for modern golfers. HONMA is supported by a team of promising young players from Asia who are emerging as stars in the golfing world. The company has also made significant efforts to engage with coaches and key opinion leaders across major Asian markets while investing substantially in its distribution network and digital capabilities in Japan and China to unify and elevate the shopping experience for its loyal consumers and the younger golfing audience.

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