Shimano net income declines despite sales increase; treasury share disposal announced

Shimano (TSE:7309) reported a 12.9% increase in net sales to JPY113.539 million for the first quarter of fiscal year 2025. However, net income attributable to owners of the parent decreased by 58.7% to JPY9.786 million, with diluted earnings per share falling to JPY110.20. This decline is attributed to higher non-operating expenses due to currency fluctuations. While the Bicycle Components segment saw a 15.6% sales increase, the Fishing Tackle segment's sales rose by only 4.5%. The company has revised its full-year net income forecast downwards, citing currency impacts. Concurrently, Shimano announced the disposal of 3,214 treasury shares, valued at JPY65,324,550, as restricted stock remuneration to directors and executive officers. This action is intended to incentivize management and align their interests with shareholders, as detailed in the company's stock remuneration plan approved in March 2023. The transfer of these shares is restricted until the recipients retire from their positions.