Latest news with #grossprofitmargin
Zawya
5 days ago
- Business
- Zawya
UAE: RAK Ceramics' revenue grew 6.4% YoY to $225.1mln in Q2
RAK Ceramics PJSC announced its financial results for the second quarter ended 30th June 2025. Total revenue increased by 6.4% YoY to AED826.8 million and by 2.9% to AED1.6 billion in H1 2025 as a result of strong demand from the UAE and Middle East as well as effective cost management. In Q2 2025, the gross profit margin increased by 110bps to 40.6% YoY and in H1 2025, it increased by 70bps to 40.2%, driven by enhanced operational efficiencies which have contributed to higher gross profit margin, reinforcing RAK Ceramic's market leadership. EBITDA increased by 17.5% to AED160.8 million in Q2 2025 compared to AED 136.9 million in the same period last year. Similarly, in H1 25 EBITDA increased by 2.9% to AED296.4 million, while EBITDA margins have increased by 1.9% to 19.5% in Q2 2025 up from 17.6% in Q2 2024. In H1 2024, EBITDA margin remained consistent at 18.5%. Profit before tax increased by 45.0% YoY to AED86.7 million, compared to AED59.8 million in Q2 2024. Net profit after tax increased by 30.1% YoY to AED66.4 million, compared to AED51.0 million in Q2 2024. In line with the increased profitability across the businesses. UAE Corporate tax was AED17.2 million in Q2 2025, up from AED6.5 million in Q2 2024. Net debt position rose by AED120.6 million to reach AED1.56 billion in Q2 2025, compared to Q1 2025, primarily driven by increased capital expenditure and working capital requirements. Commenting on the results, Abdallah Massaad, Group CEO, RAK Ceramics, said, "I'm pleased to report that Q2 2025 delivered solid revenue growth alongside strong operational performance, a reflection of the strength and adaptability of RAK Ceramics across the globe. Our ability to drive both volume and value growth in key markets, while successfully navigating regional headwinds, further underscores the effectiveness of our diversified strategy. "Looking forward, we're continuing to innovate our operations and accelerate initiatives that will strengthen our position in the market and continue to drive profitability across all divisions."
Yahoo
13-07-2025
- Business
- Yahoo
Velan Inc. Reports Solid First Quarter Results for Fiscal 2026
18.6% sales growth and higher gross profit margin Net income from continuing operations of $17.8 million, consolidated net income including closing of the transactions of $77.2 million Strong financial position with available cash on hand of $59.1 million, highest in five years Significant increase in quarterly dividend payment to CA$0.10 per common share MONTREAL, July 10, 2025 (GLOBE NEWSWIRE) -- Velan Inc. (TSX: VLN) ('Velan' or the 'Company'), a world-leading manufacturer of industrial valves, announced today financial results for its first quarter ended May 31, 2025. All amounts are expressed in U.S. dollars unless indicated otherwise. FIRST-QUARTER HIGHLIGHTS FROM CONTINUING OPERATIONS IFRS MEASURES INCLUDING SIGNIFICANT TRANSACTIONS (see below) Sales of $72.2 million, up $11.3 million or 18.6% compared to the same period last year. Solid increase in gross profit to $20.6 million or 28.6% of sales, from $16.8 million or 27.6% of sales last year. Net income1 of $17.8 million, or $0.83 per share, versus a net loss of $2.2 million last year. Strong financial position with cash and cash equivalents of $59.1 million as at May 31, 2025, versus $34.9 million at the beginning of the fiscal year. NON-IFRS AND SUPPLEMENTARY FINANCIAL MEASURES Backlog2 of $286.1 million, up 4.1% from $274.9 million at the end of the previous quarter. Bookings2 of $78.2 million, versus $83.0 million last year, representing a current book-to-bill ratio of 1.08. Adjusted net income2 of $0.1 million, versus adjusted net income of $0.2 million last year Adjusted EBITDA2 of $4.0 million, compared to $2.8 million last year, reflecting higher gross profit. 'Velan delivered a solid performance in the first quarter, achieving sales growth from continuing operations of 18.6% and gross profit margin improvement,' said James A. Mannebach, Chairman of the Board and CEO of Velan. 'Booking activity remained robust with another sequential improvement in new orders leading to a 4.1% increase in our backlog at the end of the quarter. Our maintenance, repair and overhaul (MRO) activities generated strong bookings, many of which were quickly converted to sales during the reporting period. Over the longer term, Velan is well-positioned to benefit from rising momentum in its key markets, while our strong financial position allows us to invest in the future, including strategic acquisitions, to broaden our reach and sustain profitable growth.' 'We closed the first quarter with cash and cash equivalents of $59.1 million, our highest level in five years, as we completed the divestiture of asbestos-related liabilities and the sale of our French assets during the period,' added Rishi Sharma, Chief Financial and Administrative Officer of Velan. 'Based on the strength of our financial position, new $35-million credit facilities and reduced balance sheet risk, we are reassessing our capital allocation strategy to optimize the balance between supporting our growth objectives and maximizing returns to shareholders. Supporting the latter, the significant increase in our quarterly dividend payment reflects our growing backlog, greater confidence in our future performance, and our ability to sustain a strong cash flow generation.' FINANCIAL RESULTS(From continuing operations, in '000s of U.S. dollars, excluding per share amounts) Three-month periods ended May 31, 2025 May 31, 2024 Sales $72,229 $60,898 Gross profit $20,626 $16,828 Gross margin 28.6% 27.6% Restructuring expenses 5,374 2,340 Net income (loss) $17,826 ($2,187 ) per share - basic and diluted $0.83 ($0.10 ) Weighted average share outstanding ('000s) 21,586 21,586 NON-IFRS AND SUPPLEMENTARY FINANCIAL MEASURES(From continuing operations, in '000s of U.S. dollars, excluding per share amounts) Three-month periods ended May 31, 2025 May 31, 2024 Adjusted EBITDA $3,976 $2,846 Adjusted net income (loss) 90 $242 per share - basic and diluted $0.00 $0.01 UPDATE ON SIGNIFICANT TRANSACTIONS On March 31, 2025, the Company announced the closing sale of its French subsidiaries Velan S.A.S. and Segault S.A.S. for a total consideration of $208.2 million (€192.5 million) and net consideration of $183.1 million. Based on the net book value at the closing of the transaction and the related costs, a gain of $95.8 million was recorded in the first quarter of fiscal year 2026. The sale also triggered the recognition of a cumulative translation adjustment of $12.5 million. These amounts were recorded as part of the results from discontinued operations. Concurrently with the sale of its French subsidiaries, the Company entered into an agreement to sell its current and future exposure to Asbestos-related litigation in the United States. Part of the proceeds received from the sale of the French assets was used on April 3, 2025, to pay an amount of $143.0 million for this settlement. BACKLOG AND BOOKINGS BACKLOG As at ('000s of U.S. dollars) May 31, 2025 February 28, 2025 Backlog $286,088 $274,877 for delivery within the next 12 months $241,326 $225,662 BOOKINGS Three-month periods ended ('000s of U.S. dollars, excluding ratios) May 31, 2025 May 31, 2024 Bookings $78,234 $82,969 Book-to-bill ratio 1.08 1.36 As at May 31, 2025, the backlog from continuing operations stood at $286.1 million, up 4.1%, from $274.9 million as at February 28, 2025. Currency movements had a $7.1 million positive effect on the value of the backlog during the quarter mainly due to the strengthening of the euro versus the U.S. dollar. Excluding currency movements, the increase reflects bookings exceeding shipments in the first quarter of fiscal 2026. As at May 31, 2025, 84.4% of the backlog, representing orders of $241.3 million, is deliverable in the next 12 months, versus 90.5% of last year's backlog. This shift in the delivery schedule is driven by the securing of an increasing number of long-term larger contracts for the nuclear and defense sectors. Bookings from continuing operations amounted to $78.2 million in the first quarter of fiscal 2026, compared to $83.0 million in the first quarter of fiscal 2025. The decrease reflects lower bookings in Germany and North America due to large orders received in last year's first quarter. These factors were partially offset by higher bookings for Chinese and Portuguese operations, as well as higher MRO bookings. Currency movements had a negligible effect on the value of bookings for the quarter. FIRST QUARTER RESULTS Sales from continuing operations for the first quarter of fiscal 2026 totaled $72.2 million, an increase of $11.3 million or 18.6% compared to $60.9 million for the same period last year. The variation mainly reflects higher shipments from Italian operations for the oil & gas industry and higher business volume at our operations in China, India and Germany. These factors were partially offset by lower sales in other international markets. North American sales held relatively steady as lower shipments to the defense industry were offset by strong MRO activity. Currency movements had a negligible effect on sales for the period. In the first quarter of fiscal 2026, gross profit from continuing operations reached $20.6 million, up from $16.8 million last year. The variation reflects a higher business volume which improved the absorption of fixed production overhead costs, a more favorable product mix this year compared to last, lower material costs and lower provisions for aging inventory. Currency movements had no effect on gross profit for the period. As a percentage of sales, gross profit was 28.6%, compared to 27.6% last year. Administration costs from continuing operations amounted to $18.3 million, or 25.4% of sales, in the first quarter of fiscal 2026, compared to $15.4 million, or 25.2% of sales, in the first quarter of fiscal 2025. The variation reflects higher sales commissions and higher professional fees. In the first quarter of fiscal 2026, the Company incurred restructuring expenses of $5.4 million, including $6.1 million in transaction-related costs, partially offset by a $0.7 million reversal of asbestos-related costs. In the first quarter of fiscal 2025, restructuring expenses consisted of asbestos-related costs of $2.3 million. Excluding restructuring expenses, adjusted EBITDA from continuing operations for the first quarter of fiscal 2026 was $4.0 million, versus $2.8 million in the first quarter of fiscal 2025. The increase is primarily attributable to higher gross profit, partially offset by higher administration costs, as explained above. Net income from continuing operations was $17.8 million, or $0.83 per share, in the first quarter of fiscal 2026, compared to a net loss of $2.2 million, or a loss of $0.10 per share, in the first quarter of fiscal 2025. The variation mainly reflects a $23.1 million non-recurring tax recovery related to the disposal of the French subsidiaries. Net income from discontinued operations was $59.4 million, versus $1.1 million last year. As a result, net income for the first quarter of fiscal 2026 totaled $77.2 million, or $3.58 per share, compared with a net loss of $1.1 million, or $0.05 per share, last year. Excluding restructuring expenses and the non-recurring tax recovery, adjusted net income from continuing operations was $0.1 million, or $0.00 per share, in the first quarter of fiscal 2026, versus adjusted net income of $0.2 million, or net income of $0.01 per share, in the first quarter of fiscal 2025. FINANCIAL POSITION As at May 31, 2025, the Company held cash and cash equivalents of $59.1 million and short-term investments of $0.4 million. Bank indebtedness stood at $3.3 million, while long-term debt, including the current portion, amounted to $16.4 million. OUTLOOK As at May 31, 2025, orders amounting to $241.3 million, representing 84.4% of a total backlog of $286.1 million, are expected to be delivered in the next 12 months. Given these orders, and despite the current uncertainty related to tariffs, the Company expects to deliver another solid performance in fiscal 2026. DIVIDEND On July 10, 2025, the Board of Directors of Velan modified the Company's dividend policy by approving a significant increase in the Company's recurring quarterly dividend payment from CA$0.03 to CA$0.10 per common share. This increase reflects Velan's growing backlog and the Board's confidence in the Company's future financial performance, including generating strong cash flow. Reflecting this increase, the Board of Directors has declared a dividend of CA$0.10 per common share payable on August 29, 2025, to shareholders of record as at August 15, 2025. CONFERENCE CALL NOTICE Financial analysts, shareholders, and other interested individuals are invited to attend the first quarter conference call to be held on Friday, July 11, 2025, at 8:00 a.m. (EDT). The toll-free call-in number is 1-800-990-4777 or by RapidConnect URL: The material that will be referenced during the conference call will be made available shortly before the event on the company's website under the Investor Relations section ( A recording of this conference call will be available for seven days at 1-289-819-1450 or 1-888-660-6345 and entering the replay code 86319. ABOUT VELAN Founded in Montreal in 1950, Velan Inc. ( is one of the world's leading manufacturers of industrial valves, with sales from continuing operations of US$295.2 million in its last reported fiscal year. The Company employs 1,284 people and has manufacturing plants in 9 countries. Velan Inc. is a public company with its shares listed on the Toronto Stock Exchange under the symbol VLN. SAFE HARBOUR STATEMENT This news release may include forward-looking statements, which generally contain words like 'should', 'believe', 'anticipate', 'plan', 'may', 'will', 'expect', 'intend', 'continue' or 'estimate' or the negatives of these terms or variations of them or similar expressions, all of which are subject to risks and uncertainties, which are disclosed in the Company's filings with the appropriate securities commissions. While these statements are based on management's assumptions regarding historical trends, current conditions and expected future developments, as well as other factors that it believes are reasonable and appropriate in the circumstances, no forward-looking statement can be guaranteed and actual future results may differ materially from those expressed herein. The Company disclaims any intention or obligation to update or revise any forward-looking statements contained herein whether as a result of new information, future events or otherwise, except as required by the applicable securities laws. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement. NON-IFRS AND SUPPLEMENTARY FINANCIAL MEASURES In this press release, the Company has presented measures of performance or financial condition which are not defined under IFRS ('non-IFRS measures') and are, therefore, unlikely to be comparable to similar measures presented by other companies. These measures are used by management in assessing the operating results and financial condition of the Company and are reconciled with the performance measures defined under IFRS. The Company has also presented supplementary financial measures which are defined at the end of this report. Reconciliation and definition can be found below. Adjusted net income (loss), Adjusted net income (loss) per share, Earnings before interest, taxes, depreciation and amortization ("EBITDA") and Adjusted EBITDA Three-month periods ended (in thousands, except per share amounts; certain totals may not add up due to rounding) May 31, 2025$ May 31, 2024$ Reconciliation of net income (loss) from continuing operations to adjusted net income (loss) from continuing operations and adjusted net income (loss) from continuing operations per share Net income (loss) from continuing operations 17,826 (2,187 ) Adjustments for: Asbestos-related costs (754 ) 2,340 Transaction-related costs 6,128 - Other restructuring costs - 89 Non-recurring tax recovery on France transaction (23,110 ) - Adjusted net income (loss) from continuing operations 90 242 per share – basic and diluted 0.00 0.01 Reconciliation of net income (loss) from continuing operations to Adjusted EBITDA from continuing operations Net income (loss) from continuing operations 17,826 (2,187 ) Adjustments for: Depreciation of property, plant and equipment 1,573 1,349 Amortization of intangible assets and financing costs 771 623 Finance costs – net 390 194 Income tax expense (recovery) (21,958 ) 406 EBITDA (1,398 ) 385 Adjustments for: Asbestos-related costs (754 ) 2,340 Transaction-related costs 6,128 - Other restructuring costs - 121 Adjusted EBITDA 3,976 2,846 The term 'Adjusted net income (loss)' is defined as net income or loss attributable to Subordinate and Multiple Voting Shares plus adjustment, net of income taxes, for costs related to restructuring and to the proposed transaction. The terms 'Adjusted net income (loss) per share' is obtained by dividing Adjusted net income (loss) by the total amount of subordinate and multiple voting shares. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement. The term 'EBITDA' is defined as adjusted net income plus depreciation of property, plant & equipment, plus amortization of intangible assets, plus net finance costs, plus income tax provision. The term 'Adjusted EBITDA' is defined as EBITDA plus adjustment for costs related to restructuring and to the proposed transaction. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement. Definitions of supplementary financial measures The term 'Net new orders' or 'bookings' is defined as firm orders, net of cancellations, recorded by the Company during a period. Bookings are impacted by the fluctuation of foreign exchange rates for a given period. The measure provides an indication of the Company's sales operation performance for a given period as well as well as an expectation of future sales and cash flows to be achieved on these orders. The term 'backlog' is defined as the buildup of all outstanding bookings to be delivered by the Company. The Company's backlog is impacted by the fluctuation of foreign exchange rates for a given period. The measure provides an indication of the future operational challenges of the Company as well as an expectation of future sales and cash flows to be achieved on these orders. The term 'book-to-bill' is obtained by dividing bookings by sales. The measure provides an indication of the Company's performance and outlook for a given period. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement. Contact: Rishi Sharma, Chief Financial and Administrative Officer Martin Goulet, CFA Velan Inc. MBC Capital Markets Advisors Tel: (438) 817-4430 Tel.: (514) 731-0000, ext. 2291 Net income or loss refer to net income or loss attributable to Subordinate and Multiple Voting Shares2 Non-IFRS and supplementary financial measures – more information at the end of this Statements of Financial Position (in thousands of U.S. dollars) As at May 31, February 28, 2025 2025 $ $ Assets Current assets Cash and cash equivalents 59,102 34,872 Short-term investments 399 358 Accounts receivable 61,849 62,612 Income taxes recoverable 6,114 5,617 Inventories 138,079 134,969 Deposits and prepaid expenses 3,829 3,689 Derivative assets 789 24 Assets held for sale - 176,762 270,161 418,903 Non-current assets Property, plant and equipment 52,259 51,349 Intangible assets and goodwill 6,468 5,893 Deferred income taxes 5,261 25,101 Other assets 777 720 64,765 83,063 Total assets 334,926 501,966 Liabilities Current liabilities Bank indebtedness 3,318 2,508 Accounts payable and accrued liabilities 85,392 78,776 Income taxes payable 1,826 1,818 Customer deposits 16,019 22,338 Provisions 9,739 153,957 Derivative liabilities 525 480 Current portion of long-term lease liabilities 1,514 1,437 Current portion of long-term debt 1,692 2,096 Liabilities held for sale - 110,883 120,025 374,293 Non-current liabilities Long-term lease liabilities 4,697 4,727 Long-term debt 14,704 14,107 Income taxes payable - 692 Deferred income taxes 1,255 737 Customer deposits 8,984 3,876 Other liabilities 4,999 4,796 34,639 28,935 Total liabilities 154,664 403,228 Total equity 180,262 98,738 Total liabilities and equity 334,926 501,966 Consolidated Statements of Loss (in thousands of U.S. dollars, excluding number of shares and per share amounts) Three-month periods ended May 31, May 31, 2025 2024 $ $ Sales 72,229 60,898 Cost of sales 51,603 44,070 Gross profit 20,626 16,828 Administration costs 18,313 15,368 Restructuring expenses 5,374 2,340 Other expenses 732 762 Operating loss (3,793 ) (1,642 ) Financing expenses (390 ) (195 ) Loss before income taxes (4,183 ) (1,837 ) Income tax expense (recovery) (21,958 ) 406 Net Income (loss) for the period from continuing operations 17,775 (2,243 ) Results from discontinued operations 59,379 1,083 77,154 (1,160 ) Net loss attributable to: Subordinate Voting Shares and Multiple Voting Shares 77,205 (1,104 ) Non-controlling interest (51 ) (56 ) Net Income (loss) for the period 77,154 (1,160 ) Net Income (loss) per Subordinate and Multiple Voting Share Basic and diluted from continuing operations 0.83 (0.10 ) Basic and diluted from discontinued operations 2.75 0.05 Basic and diluted all operations 3.58 (0.05 ) Dividends declared per Subordinate and Multiple 0.24 - Voting Share (CA$ 0.33 ) (CA$ - ) Total weighted average number of Subordinate and Multiple Voting Shares Basic and diluted 21,585,635 21,585,635 Consolidated Statements of Comprehensive Income (loss) (in thousands of U.S. dollars) Three-month periods ended May 31, May 31, 2025 2024 $ $ Comprehensive Income (loss) Net Income (loss) for the period 77,154 (1,160 ) Other comprehensive income (loss) Foreign currency translation of foreign subsidiaries (2,872 ) (91 ) Foreign currency translation of foreign subsidiaries from discontinued operations - 337 Reclassification of foreign currency translation from discontinued operations 12,456 - Comprehensive Income (loss) 86,738 (914 ) Comprehensive Income (loss) attributable to: Subordinate Voting Shares and Multiple Voting Shares 86,789 (858 ) Non-controlling interest (51 ) (56 ) Comprehensive Income (loss) 86,738 (914 ) Other comprehensive income (loss) is composed solely of items that may be reclassified subsequently to the consolidated statement of income (loss).Consolidated Statements of Changes in Equity (in thousands of U.S. dollars, excluding number of shares) Equity attributable to the Subordinate and Multiple Voting shareholders Share capital Contributedsurplus Accumulatedothercomprehensiveloss Retainedearnings Total Non-controllinginterest Total equity Balance - February 29, 2024 72,695 6,260 (38,692 ) 141,914 182,177 1,082 183,259 Net loss for the period - - - (1,104 ) (1,104 ) (56 ) (1,160 ) Other comprehensive loss - - 246 - 246 - 246 Comprehensive Income (loss) - - 246 (1,104 ) (858 ) (56 ) (914 ) Balance - May 31, 2024 72,695 6,260 (38,446 ) 140,810 181,319 1,026 182,345 Balance - February 28, 2025 72,695 6,355 (47,141 ) 65,952 97,861 877 98,738 Net income (loss) for the period - - - 77,205 77,205 (51 ) 77,154 Other comprehensive loss - - (2,872 ) - (2,872 ) - (2,872 ) Comprehensive income (loss) - - (2,872 ) 77,205 74,333 (51 ) 74,282 Reclassification of foreign currency translation to discontinued operations - - 12,456 - 12,456 - 12,456 Dividends Multiple Voting Shares - - - (3,770 ) (3,770 ) - (3,770 ) Subordinate Voting Shares - - - (1,444 ) (1,444 ) - (1,444 ) Balance - February 28, 2025 72,695 6,355 (37,557 ) 137,943 179,436 826 180,262 Consolidated Statements of Cash Flow (in thousands of U.S. dollars) Three-month periods ended May 31, May 31, 2025 2024 $ $ Cash flows from Operating activities Net income (loss) for the period 77,154 (1,160 ) Less: results from discontinued operations (59,379 ) (1,083 ) Net Income (loss) for the period for continued operations 17,775 (2,243 ) Adjustments to reconcile net loss to cash provided by operating activities (17,173 ) (833 ) Changes in non-cash working capital items (160,620 ) 14,994 Cash provided (used) by operating activities from continued operations (160,018 ) 11,918 Investing activities Short-term investments (32 ) (441 ) Additions to property, plant and equipment (1,953 ) (1,748 ) Additions to intangible assets - (804 ) Proceeds on disposal of property, plant and equipment 953 8 Net change in other assets 35 (52 ) Cash provided (used) by investing activities from continued operations (excluding proceeds on disposal of France assets) (997 ) (3,037 ) Proceeds on disposal of France assets 183,143 - Cash provided (used) by investing activities from continued operations 182,146 (3,037 ) Financing activities Increase in long-term debt 1,064 253 Repayment of long-term debt (871 ) (3,816 ) Repayment of long-term lease liabilities (399 ) (447 ) Cash provided (used) by financing activities from continued operations (206 ) (4,010 ) Effect of exchange rate differences on cash 1,498 (533 ) Net change in cash during the period from continued operations 23,420 4,338 Net change in cash during the period from discontinued operations 9,525 (6,762 ) Net change in cash during the period 32,945 (2,424 ) Net cash – Beginning of the period 32,364 27,283 Net cash – End of the period 55,784 31,621 Net cash is composed of: Cash and cash equivalents 59,102 33,400 Bank indebtedness (3,318 ) (1,779 ) Net cash – End of the period 55,784 31,621 Supplementary information Interest paid (239 ) (201 ) Income taxes paid (1,427 ) (850 )Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Zawya
26-06-2025
- Business
- Zawya
HONMA Golf Announces Annual Results for FY2024/25
Continued Gross Profit Margin and Net Operating Cash Flow improvements albeit difficult market conditions HONG KONG SAR - Media OutReach Newswire - 26 June 2025 - HONMA Golf Limited ("HONMA"; together with its subsidiaries, the "Group"; HKEx stock code: 6858), one of the world's most prestigious golf brands, announces its consolidated annual results for the year ended 31 March 2025 (the "Period"). Financial Highlights Due to economic slowdown and challenges, increased competition within the industry, and weakened consumer confidence, the Group's revenue for the Period decreased by 17.4% to JPY21,672 million (equivalent to USD142.9 million). Nonetheless, retail revenue grew by 11.0% and 8.9% respectively in Mainland China and Taiwan during the Period and revenue from Europe increased by 16.4%, rising from JPY361.8 million for the year ended 31 March 2024 to JPY421.0 million. Gross profit margin expanded by 3.2 percentage points, reaching 54.4%, following improvements in Japan's gross margin command. Net operating cash flow increased by 1.5% to JPY5,497 million (equivalent to USD36.2 million). Major Achievements For the year ended 31 March 2025, the golf industry witnessed increased market competition and adjustments in both participation and purchase intent resulting from economic slowdowns and challenges in certain parts of the world. Despite unfavorable market conditions, HONMA continued to implement its long-term business strategies by investing into its product development, distribution footprint and brand marketing efforts while carefully protecting its financial strength and cash flow. Strategic Focus on Super-Premium and Premium-Performance Segments Amidst downward adjustments in the global golf industry, HONMA remained focused on cultivating its home markets in Asia and further consolidated and streamlined its product offerings around two key consumer segments - super-premium and premium - performance. HONMA has been maintained a leading and strong market position in the super-premium segment for decades, developing and selling clubs that combine Japanese aesthetic beauty with uncompromising features. The premium-performance segment, which is dominated by avid golfers, has enjoyed the strongest growth momentum for years and is the largest in terms of participation. To increase its penetration into both segments, HONMA has simplified its product strategy. This includes enriching its TOUR WORLD club portfolio with a performance enhancement series and renewing its classic BERES club family with a modern and sophisticated design approach to appeal to today's golfers. Expanding Product Portfolio in Core Segments HONMA derived most of its revenue from the sales and distribution of golf clubs. During the Period, golf clubs generated 70% of the Group's total revenue. HONMA remains committed to apply cutting-edge technologies and artisan-style Japanese craftsmanship to the design, development, and manufacturing of a comprehensive range of exquisitely crafted, performance-driven golf clubs. In addition to clubs, HONMA launched various golf ball products with its own patent and relaunched its apparel business to create a comprehensive range of golf products for golfers in the super-premium and premium-performance segments. These new product portfolios have generated stable revenue contributions over the past years and aim to meet the HONMA brand positioning and play preferences of its consumers. Driven by continued price management and enhanced product offerings, HONMA's overall gross profit margin expanded by 3.2 percentage points year-on-year, despite increases in raw material prices and unfavorable currency movements. Specifically, the gross profit margins for golf balls, apparel, and accessories rose by 4.0, 9.9, and 22.7 percentage points year-on-year respectively. Reprioritizing Growth Strategies and Enhancing Financial Performance in North America and Europe HONMA made constant upgrade of its retail presence with top-tier locations, revitalized visual identity, fresh design concepts, and enhanced customer experiences. As a result, sales from self-owned channels increased 2.8% year-on-year to JPY 11,263 million. North America and Europe continued to enjoy the largest golfer demographics, albeit with varied market conditions. For the year ended 31 March 2025, HONMA reprioritized its distribution strategy in these regions by focusing on a select group of premier accounts that best represent HONMA's tradition and commitment to the super-premium and premium-performance consumer segments. Concurrently, HONMA optimized its organisational set up and cost base in both markets to ensure stable near- to mid-term growth amidst social, economic, and financial uncertainties. As part of this strategic adjustment, HONMA opened 26 points of sales (" POS") in North America during the year, bringing the total to 370 as of 31 March 2025. In Europe, HONMA opened seven new POS, expanding its network to 136 locations. Re-defining the HONMA brand HONMA initiated various programs to enhance its global brand positioning and communication with target consumers. To re-define the HONMA brand as a dynamic, relevant, and premium golf lifestyle brand among internet-savvy younger golfers, HONMA has consistently elevated its global website and social media platforms with regular and relevant visual and content updates to continuously promote brand and product awareness and appeal to younger golfers. With a full-channel approach and a boost in digital marketing investment, HONMA's e-commerce sales rose 6.3% year-on-year while Japan and China recorded a year-on-year increase of 10.1% and 6.9% rise. To create an end-to-end digital ecosystem around the redefined brand and golfers in the super-premium and premium-performance segments, HONMA has implemented customer relationship management (CRM) systems in multiple markets. The Group has also added advanced e-commerce capabilities and consumer-centric custom tools to provide consumers with the ultimate 360-degree brand experience. These initiatives strengthen HONMA's direct-to-consumer communication and are expected to eventually increase sales both online and offline. Business Outlook In the coming years, HONMA will continue to execute its long-term growth strategy to establish itself as a world-leading golf lifestyle company, leveraging HONMA's brand legacy, expanding distribution network, and innovative technologies, and traditional Japanese craftsmanship. Key focus areas include sustainably enhancing HONMA's brand value to foster customer loyalty, increasing market share in home markets by maintaining its leading position in the super-premium segment, while making inroads into the fast-growing premium-performance segment. HONMA aims to anchor sustainable growth in North America and Europe through an updated product and distribution strategy. Additionally, HONMA will nurture complementary non-club product lines to offer customers a complete golf lifestyle experience and pursue product innovation and development to meet the latest market trends. Mr. LIU Jianguo, Chairman of the Board, President, and Executive Director of HONMA Golf Limited, stated: "Despite market fluctuations, HONMA has demonstrated remarkable resilience, maintained strong gross margins, and expanded our direct-to-consumer channels. Our strategic focus on the super-premium and premium-performance segments, combined with enhanced digital capabilities and an optimized distribution network, has positioned us well for future growth and enabled us to deliver better returns for our stakeholders. " Hashtag: #HONMAGolf The issuer is solely responsible for the content of this announcement. About HONMA Golf Limited HONMA is one of the most prestigious and iconic brands in the golfing industry. Founded in 1959, HONMA combines the latest innovative technologies with traditional Japanese craftsmanship to offer golfers around the world premium, high-tech, and high-performance golf clubs, balls, apparel, and accessories. As the only vertically integrated golf company with extensive in-house design, development, and manufacturing capabilities, as well as a broad retail footprint in Asia, HONMA is perfectly positioned to continuously grow its business in Asia and beyond, benefitting from the return of golfers in mature golf markets such as the US and Japan, and from increased participation in emerging markets such as Korea and China. HONMA will celebrate its 68th anniversary in 2025. In recent years, HONMA has actively undertaken brand and marketing campaigns with the goal of redefining the HONMA brand as a dynamic, relevant, and premium golf lifestyle brand among today's golfers. HONMA maintains a team of young professional players from Asia who are considered rising stars or upcoming challengers in the golf industry. HONMA has also collaborated extensively with coaches and key opinion leaders in major Asian markets and made significant investments in its retail distribution network and digital capabilities in Japan and China to unify and elevate the consumer experience and purchase journey for its loyal consumers and the younger golfing community. HONMA Golf Limited
Yahoo
17-05-2025
- Business
- Yahoo
RLX Technology Inc (RLX) Q1 2025 Earnings Call Highlights: Strong Revenue Growth Amid ...
Net Revenue: RMB808 million, a 47% year-over-year increase. Gross Profit Margin: Improved to 28.6%, a 2.7 percentage point increase year over year and 1.6 percentage points quarter over quarter. Non-GAAP Operating Profit: RMB106 million, with a 9 percentage point increase in operating profit margin year over year. Operating Cash Inflow: RMB207 million, up from RMB4 million in the same quarter of the previous year. Cash Position: Total financial assets at RMB16.2 billion as of March 31, 2025, compared to RMB15.9 billion as of December 31, 2024. Inventory Turnover Days: 25 days. Receivable Turnover Days: 13 days. Payable Turnover Days: 81 days. Warning! GuruFocus has detected 2 Warning Signs with RLX. Release Date: May 16, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. RLX Technology Inc (NYSE:RLX) reported a 47% year-over-year increase in net revenues to RMB808 million for the first quarter of 2025. The company achieved a non-GAAP operating profit of RMB106 million, marking its sixth consecutive quarter of positive non-GAAP operating profit. Gross profit margin improved to 28.6%, a 2.7 percentage point increase year over year, driven by a favorable revenue mix and cost optimization. RLX Technology Inc (NYSE:RLX) has a strong cash position with total financial assets of RMB16.2 billion as of March 31, 2025. The company is well-positioned to adapt to regulatory changes with advanced in-house product development capabilities and a robust inventory management system. The global e-vapor industry is facing increased regulatory scrutiny, with bans on disposable e-vapor products in key markets like the UK and New Zealand. Despite the increase in e-liquid consumption, the lower average selling price of big puff products has stunted revenue growth across the industry. RLX Technology Inc (NYSE:RLX) anticipates negative growth in industry dollar value for 2025 due to the transitional shift to big puff products. The company faces operational challenges due to evolving regulations and trends, which require constant adaptation and innovation. In Mainland China, the dominance of illegal products limits growth opportunities for RLX Technology Inc (NYSE:RLX) despite regulatory enforcement improvements. Q: Could you share any latest updates on the progression of RLX's overseas expansion and plans to enter or consolidate new markets? Also, how do you assess the potential impact of evolving regulatory changes on your business? A: Sam Tsang, Head of Capital Markets, explained that RLX is maintaining a prudent approach to expanding into new markets due to evolving global macro and regulatory environments. They expect to take another one to two quarters to evaluate further market expansion. Regarding regulatory changes, RLX is adapting to stricter rules and clearer guidelines in Southeast Asia and environmental concerns in Europe and Oceania. Their strong in-house product development capabilities position them well to adapt to these changes. Q: What's the progress of Europe's transition from disposable e-cigarettes to big puff products, and how do you see future product trends? What strategies will you adopt to capture market share, and what are your competitive advantages in marketing and channel development? A: Sam Tsang noted that demand for big puff products is increasing in Europe, with a gradual shift from small puff disposables. The transition is expected to be largely completed by the end of the year. RLX's strategies focus on product development and channel strategy, optimizing their product portfolio and adopting a localized approach to distribution and retail. They are building local teams to enhance their route-to-market strategy. Q: How is the competitive landscape in Europe regarding category conversion, and what advantages does RLX have compared to global leaders like BAT or disposable brands like Air Bar? What about potential regulatory changes in the domestic market? A: Sam Tsang highlighted RLX's comprehensive product portfolio and agile supply chain as competitive advantages. Their commitment to the e-vapor segment and in-house R&D capabilities allow them to align with regulatory requirements and user needs. In Mainland China, the regulatory framework has remained stable, and RLX has launched compliant products, achieving modest revenue growth. Q: How does RLX plan to address the challenges posed by the evolving regulatory landscape, particularly in Southeast Asia and Europe? A: Sam Tsang stated that RLX is well-positioned to adapt to regulatory changes due to their strong in-house product development capabilities. They are focusing on compliance and innovation to meet market-specific needs and maintain a competitive edge. Q: What are RLX's strategies for product development and channel strategy to capture market share in different regions? A: Sam Tsang explained that RLX's strategies are highly customized to each market, focusing on product development and channel strategy. They track market trends and sales data to optimize their product portfolio and adopt a localized approach to distribution and retail, building local teams to enhance their route-to-market strategy. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error while retrieving data Sign in to access your portfolio Error while retrieving data
