10 Feb Asics’ Revenues Climb 23 Percent In 2021
Asics reported that despite the effects of COVID-19, net sales increased 22.9 percent in its year ended December 31 due to strong sales in all regions, mainly driven by the Performance Running category and the Core Performance Sports category. The biggest regional gains were seen in North America, up 31.8 percent; and Greater China, 27.9 percent.
Sales reached ¥404,082 million for 2021 against ¥328,784 million in 2020.
Gross profit increased 30.8 percent to ¥199,878 million due to the impact of the increase in net sales. Operating income was ¥21,945 million against a loss of ¥3,953 million due to an improvement in the gross profit ratio.
Ordinary income was ¥22,166 million compared with a loss of ¥6,923 million. Profit attributable to owners of parent was ¥9,402 million against a loss of ¥16,126 million.
Category Performance
By product category, net sales in Performance Running increased 31.0 percent to ¥208,268 million due to strong sales in all regions. Category profit increased 71.2 percent to ¥42,634 million due to an improvement of the gross profit ratio, as well.
Net sales in Core Performance Sports increased 23.2 percent to ¥41,332 million due to strong sales in all regions. Category profit increased significantly 260.5 percent to ¥5,004 million due to an improvement of the gross profit ratio, as well as due to the increase in net sales.
Net sales in Sports Style increased 12.5 percent to ¥33,252 million due to strong sales in the Europe, Greater China and Oceania regions. Category profit increased significantly 110.1 percent to ¥4,310 million due to an improvement of the gross profit ratio, as well as due to the increase in net sales.
Net sales in Apparel and Equipment increased 14.5 percent to ¥34,115 million due to strong sales in the Japan, North America and Europe regions. Category loss was ¥175 million, a significant reduction in loss compared to the previous fiscal year, due to an improvement of the gross profit ratio.
Net sales of Onitsuka Tiger increased 13.6 percent to ¥38,545 million due to strong sales in the Greater China and Southeast and South Asia regions. Category profit increased 34.6 percent to ¥4,868 million due to an improvement of the gross profit ratio, as well as due to the increase in net sales.
Regional Performance
- Japan: Net sales increased 16.4 percent to ¥109,911 million due to strong sales of the Performance Running category and Core Performance Sports category. Segment income returned profitable to ¥1,193 million, due to an improvement of the selling, general and administrative expenses ratio, as well as due to the increase in net sales.
- North America: Net sales increased 31.8 percent to ¥86,176 million due to strong sales of the Performance Running
category and Core Performance Sports category. Segment income returned profitable to ¥848 million, due to an improvement of the gross profit ratio, as well as due to the increase in net sales. - Europe: Net sales increased 22.1 percent to ¥106,604 million due to strong sales of the Performance Running category, Core Performance Sports category and Sports Style category. Segment income increased significantly 138.2 percent to ¥10,889 million due to an improvement of the gross profit ratio, as well as due to the increase in net sales.
- Greater China: Net sales increased 27.9 percent to ¥52,593 million due to strong sales of the Performance Running
category and Onitsuka Tiger category. Segment income increased significantly 112.5 percent to ¥9,147 million due to the impact of the increase in net sales and an improvement of the gross profit ratio of products for wholesale and retail. - Oceania: Net sales increased 24.2 percent to ¥24,756 million due to strong sales of the Performance Running category and Sports Style category. Segment income increased 23.6 percent to ¥3,347 million mainly due to the impact of the increase in net
sales. - Southeast and South Asia: Net sales increased 27.5 percent to ¥10,903 million due to strong sales of the Performance Running category and Onitsuka Tiger category. Segment income increased significantly 533.7 percent to ¥964 million due to the impact of the increase in net sales
- Other: Net sales increased 24.3 percent to ¥35,133 million due to strong sales of the Performance Running category and Core Performance Sports category. Segment income increased significantly 284.3 percent to ¥1,797 million mainly due to the impact of the
increase in net sales.
Outlook
Looking forward, Asics said in its statement, “For the fiscal year ending December 2022, production disruptions will remain during Q1 period and logistics costs are expected to increase. In such an environment, we anticipate planning an increase both in sales and operating income while continuing aggressive investment in marketing.”
The outlook for the current year includes:
- Net sales are expected to reach ¥420.0 million, representing a gain of 3.9 percent;
- Operating are expected to reach ¥23.0 million, representing a gain of 4.8 percent;
- Ordinary income is expected to reach ¥22.5 million, up 1.5 percent; and
- Profit attributable to owners of parent is expected to reach 1¥3.5 million, representing a gain of 43.6 percent.