Financial Highlights
- Despite continued global economic and geopolitical challenges which negatively impacted consumer sentiments, the Group reported a year-on-year revenue growth of 2.7% to JPY22,259.7 million (equivalent to USD147.7 million).
- Korea rebounded robustly with a year-on-year sales growth of 55.2%, resulting from continued investment in HONMA's brand and product awareness in the country and success with both retail and wholesale channels in the country.
- Revenue from golf clubs, accounting for 70.7% of total revenue, reported a solid year-on-year growth of 4.5%. Golf ball sales grew by 12.2%, on the back of solid recovery in Japan, Korea and China (including Hong Kong and Macau), which markets grew by 5.1%, 4.8% and 87.3% respectively.
- Full year net profit increased to JPY1,119.8 million (equivalent to USD7.4 million), up from a loss of JPY264.2 million for the year ended 31 March 2025.
- Net operating cash flow remained positive at JPY1,109.3 million (equivalent to USD7.4 million) and net gearing reduced to 21.4%, down from 23.5% as at March 31, 2025.
- Continuously delivering working capital efficiency with inventory turnover days improved significantly from 315 to 251.
During the twelve months period ended 31 March 2026, the golf industry was faced with intensified competition amidst economic slowdown and regional geopolitical instabilities in some parts of the world. Despite these challenges, HONMA firmly executed its growth strategy while continuously investing in product innovation, optimising its distribution network, and strengthening brand marketing efforts.
Korea Market Outperformed All Other Markets with Exponential Growth in Both Retail and Wholesale Channels
While overall market conditions and consumer sentiment remained subdued, Korea outperformed all other markets and delivered a year-on-year growth of 56.7% from its wholesales channel and 34.3% from its retail channel, thanks to continued investment in HONMA's brand awareness among Korean golfers, its direct-to-consumer businesses in the country and the renewal of its distributor arrangements. During the Period, gross profit margin in Korea improved by 10 percentage points resulting from continued improvement in the Group's price management, product offering and consumer journey in this dynamic and evolving golf market.
Newly Launched Products Received Positive Consumer Acceptance
HONMA launched a number of products in the twelve months' period ended March 31, 2026. These products symbolized the highest level of Japanese craftsmanship and HONMA's signature aesthetics and performance features and have in turn received positive feedback and acceptance from its customers and end consumers. In addition, the Company incorporated several proprietary, cutting-edge technologies into the design and development of its latest BERES and TOUR WORLD series, targeting affluent and avid golfers. As a result, revenue from BERES golf clubs rose by 3.9% and from country specific golf clubs surged by 41.5%, reconfirming HONMA's strong brand equity and its resilience amid economic headwinds.
Optimised Distribution Network
During the Period, the Group continued to optimise its distribution network in Asia, gradually shifting towards a more balanced channel mix and customers who are capable of delivering sustainable and profitable sales growth in their respective markets. While revenue from self-operated stores decreased by 6.2% due to strong headwinds in Japan, sales from third-party channels increased by 12.3% year on year, benefiting from ongoing channel optimisation in its key markets.
Re-defining the HONMA Brand
HONMA implemented a series of marketing initiatives to strengthen its global brand positioning, brand awareness, to expand reach and to deepen engagement with its target consumers. To reposition the brand as a dynamic, relevant, and premium golf lifestyle offering for digitally savvy younger golfers, the Group has continued to enhance its global website and social media presence through the delivery of regular, high-quality visual content, supporting increased brand awareness and product appeal.
Supported by a full-channel strategy and increased investment in digital marketing, the Group recorded consistent enhancements in organic traffic and conversion rates during the Period, with certain markets achieving double-digit monthly growth. HONMA's e-commerce sales recorded a year-on-year growth of 13.1% and 18.1% in Chinese Mainland and North America market.
Business Outlook
Looking ahead, HONMA will continue to advance its long-term growth strategy, with the ambition of establishing itself as a leading global golf lifestyle brand. This strategic direction builds on the Group's strong heritage, expanding distribution footprint, advanced technologies, and renowned Japanese craftsmanship. Key priorities include enhancing and revitalizing brand value to deepen customer loyalty, reinforcing leadership in the super-premium segment, and accelerating growth in the fast-expanding premium-performance category. HONMA also aims to drive sustainable expansion in North America and Europe through a more refined product offering and optimized distribution strategy, while broadening its portfolio of complementary non-club products to deliver a more holistic golf lifestyle experience. At the same time, the Group will continue to prioritize innovation and product development to remain aligned with evolving market dynamics and shifting consumer preferences.
Mr. LIU Jianguo, Chairman of the Board, President, and Executive Director of HONMA Golf Limited, said: "Despite ongoing operating challenges and business uncertainties, HONMA delivered resilient results, underpinned by solid margin performance and continued progress in its direct-to-consumer strategy. Through a disciplined focus on premium positioning, enhanced digital engagement, and an optimized distribution footprint, we have established a robust platform for sustainable long-term growth and remain committed to delivering value for our stakeholders."
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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.
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.
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