TOKYO, JAPAN — HONMA Golf Limited (HKEX: 6858), one of the world's most prestigious golf brands, has announced its consolidated annual results for the year ended March 31, 2026. Despite ongoing global economic and geopolitical challenges, the Group successfully returned to profitability, driven by a massive sales rebound in Korea and robust growth in its third-party and e-commerce channels.
HONMA reported a year-on-year revenue growth of 2.7%, reaching JPY22,259.7 million (equivalent to USD147.7 million). The most significant financial milestone was the Group's bottom-line recovery: full-year net profit rose to JPY1,119.8 million (equivalent to USD7.4 million), a major reversal from the net loss of JPY264.2 million recorded in the previous fiscal year ending March 31, 2025.
Other key financial highlights from the period include:
Positive Cash Flow: Net operating cash flow remained healthy at JPY1,109.3 million (equivalent to USD7.4 million).
Reduced Gearing: Net gearing decreased from 23.5% to 21.4% year-on-year.
Operational Efficiency: Inventory turnover days improved significantly, dropping from 315 days to 251 days.
South Korea emerged as the standout performer for the Group, staging a robust recovery with an overall year-on-year sales growth of 55.2%. Broken down by sales channels, Korea delivered a 56.7% growth in its wholesale channel and 34.3% in its retail channel. This surge was supported by a 10 percentage point improvement in gross profit margin within the country, fueled by optimized price management and product offerings.
Product-wise, golf clubs remained the primary revenue driver, accounting for 70.7% of total sales and yielding a solid 4.5% year-on-year growth. Revenue from the super-premium BERES golf clubs rose by 3.9%, while country-specific club sales surged by 41.5%. Meanwhile, golf ball sales grew by 12.2% globally, bolstered by a strong recovery in China (+87.3%), Japan (+5.1%), and Korea (+4.8%).
Faced with intensified industry competition, HONMA strategically adjusted its distribution network. While revenue from self-operated stores dipped by 6.2% due to economic headwinds in Japan, third-party channel sales picked up the slack, increasing by 12.3% year-on-year.
The brand also accelerated its digital marketing and e-commerce initiatives to capture younger, digitally savvy golfers. This shift generated consistent organic traffic and conversion rate improvements, with e-commerce sales rising by 13.1% in Chinese Mainland and 18.1% in North America.
Reflecting on the year's performance, Mr. LIU Jianguo, Chairman of the Board, President, and Executive Director of HONMA Golf Limited, stated:
"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."
Looking forward, HONMA intends to reinforce its leadership in the super-premium segment while accelerating growth in the premium-performance category. The Group plans to expand its presence in North America and Europe using refined product lines and optimized distribution, alongside broadening its portfolio of non-club products to establish itself as a comprehensive global golf lifestyle brand.
