Shimano Breaks Revenue & Earnings Records By Ridiculous Margins, With Bike Division Sales Up 49% over 2020

Feb 8, 2022 at 11:03
by Alicia Leggett  
Shimano Deore on Vancouver s North Shore 2020

Shimano broke its revenue and earnings records by absurd margins in 2021, financial records show and our sister site Bicycle Retailer reported.

Operating income increased 79.3% and sales rose 44.6% in 2021 company-wide compared with 2020. Shimano's bike division, which drove much of the growth, increased operating income 82.7% to 125.2 billion yen ($1.1 billion USD) and increased sales 49.0% to 443.7 billion yen ($3.8 billion USD) over 2020.

Some of the growth numbers are inflated in the Q1 and Q2 comparisons to 2020 because Shimano had to halt some operations at the beginning of the pandemic. Still, the bike boom has clearly driven the company to smash its previous records. Compared with the previous record year, 2015, when the company did 314.0 billion yen ($2.7 billion USD) bike division sales were up 41%. Until 2021, 2015 was the only year Shimano broke 300 billion yen in bike-related sales.

Company-wide, including the fishing division, Shimano did 546.5 billion yen ($4.7 billion USD) in sales, up 44.6% compared to 2020. Fishing sales account for 19% of Shimano's business, while a further 10% or so is made up of miscellaneous non-bike and non-fishing sales.

Shimano continues to trade publicly on several stock exchanges worldwide. Earnings per share nearly doubled from 2020 to 2021.

The rapid growth began to slow in the second half of 2021, the company said in its annual report Tuesday, and inventories are starting to approach standard levels again in some regions. In Japan, sales of low to medium-end bikes have stagnated, so inventories are slightly higher than usual, despite road bikes generally remaining scarce. In Europe, on the other hand, demand remains high for bikes all across the board, encouraged by governmental initiatives to promote biking, and the bike shortages remains. Demand in North America remains high, especially for high-end bikes, but inventories are beginning to stabilize. Asian, South American, and Central American markets have significantly cooled, and inventories there are returning to standard levels.

Shimano expects to increase sales by 6.1% to 580 billion yen company-wide in 2022.

Shimano celebrated its 100th year in 2021, after beginning in 1921 when founder manufactured the first 3.3.3 freewheel.



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244 Comments

  • 541 10
 "Due to our record earnings, we were forced to raise prices."
  • 123 20
 That's how it works. Higher demand equals higher prices.
  • 59 2
 @AndrewFleming: Lol, that's one side of the equation. Supply also matters... wanna guess that they won't adjust their prices once supply kicks back online?
  • 74 17
 @HB208: If demand drops enough and competition steps up, they will drop their prices.
  • 80 4
 @AndrewFleming: There is a functional duopoly in the bike components industry. So probs not.
  • 50 6
 @HB208: Agreed. It's basically like American elections unfortunately.
  • 13 35
flag Caligula1620 (Feb 8, 2022 at 11:44) (Below Threshold)
 @HB208: that's why these industries like the PC industry and cycling industry keep having all of these "robberies". If you can artificially keep your products scarce then who says you need to lower prices?
  • 5 1
 @AndrewFleming: demand likely won't drop imo, shimano components seem to be relatively inelastic in price for their core consumers.
  • 40 8
 Number one rule in business, you don't sell something based on what it is worth, you sell it at the highest price you can get.
  • 108 2
 @Bomadics: easy there Martin Shkreli
  • 37 1
 @HB208: I am curious to see how alternative brands like microShift pan out in all this. This brand has become the default OEM drivetrain supplier for all things 7/8/9 and some 10spd drivetrains and dealers comment the shifting performance, tuning and maintenance is way better than anything Shimano in those gear ranges. Could they become the new normal?
  • 3 1
 @FarmerJohn: Maybe on the low end of the market. Shimano and SRAM basically run everything at this point.
  • 4 7
 @Caligula1620: LOL, yeah, it's the industry steeling their own product. It's probably not at all the fact that supply/demand is making the stolen parts more valuable to thieves.
  • 8 3
 @Caligula1620: That's some insult coming from a man that models himself after a mind numbingly corrupt roman emperor!
  • 50 3
 ill bet their workers didnt see the same record earnings in their paychecks.
  • 5 0
 @HB208: There is no duopoly in the SIS or nexus Range. It's Shimano or unbranded obscure crap.
  • 4 0
 @mammal: I meant that as a flippant conspiracy comment, I don't necessarily think that's what's happening but I really wouldn't be shocked if some profit driven CEO made that call.
  • 17 1
 @Bomadics: models himself? I have yet to condemn any of you to death so I take umbrage at your insinuation.
  • 9 6
 @Caligula1620: ok, I will rephrase, NAMES himself! And you can insinuate your umbrage in private please.
  • 4 1
 @AndrewFleming: Still cheaper than Sram & Outside
  • 2 0
 @HB208: Yes only way to get lower prices is to stop buying the stuff?
  • 2 1
 @aljoburr: Probably more competition on the OEM side.
  • 4 1
 Theres a huge increase in operating costs so there’s that. Those container prices have quadrupled and cost of raw goods have skyrocketed…but I’m sure they’re selling just about everything they make.
  • 9 1
 Hopefully they’ll use some of that profit and reinvest it into R&D and materials quality. The current components are the cheapest feeling, least durable parts, I’ve ever seen from the company. The RD’s in particular are a joke.
  • 5 1
 Just you wait for Specialized and other's revenues. I predict the same story. They sold more bikes than ever *and* raised prices.
  • 6 0
 @FarmerJohn: microshift gets it.
  • 3 0
 Guess that robbery won't hurt them that much...
  • 7 0
 Yep, we as cyclists need to end this BS and stop buying.
  • 11 0
 @Bomadics: How true, have you read about Peloton?
"“It was interesting psychology that we teased out,” Peloton CEO John Foley recalled in an interview last year with Yahoo Finance. “In the very, very early days, we charged $1,200 for the Peloton bike for the first couple of months. And what turned out happening is we heard from customers that the bike must be poorly built if you’re charging $1,200 for it. We charged $2,000 dollars for it, and sales increased, because people said, ‘Oh, it must be a quality bike.’”"
  • 4 0
 @tacolord: holy sh!t can we put this at the top
  • 4 2
 You sell your house to the highest bidder. No one calls you greedy for that.
  • 1 3
 @HB208: neither will I, as a salesman. Almost like lockdowns that caused massive supply chain issues will have long term consequences.
  • 3 1
 @TheOriginalTwoTone:

There is a eimilar story with British Airways and concord.

Then sales were initially awful. When they did marketing to find out why, they found consumers expected to pay more than the tickets actually were. BA actually raised the price and began to sell more! Of course some of this was because people thought the price went down but value perception is a weird thing
  • 2 0
 @HB208: more like 1,5-poly. Sram is non existent in the medium to low end in the market, and that is hte biggest portion of it.
  • 1 2
 @HB208: And we're still several years out on supply chain coming back to normal, if ever
  • 1 1
 @HB208: seems to me that Shimano have always been very good at reinvesting there capitol into development so if they're earning more it will hopefully translate to product development and more and more improvements being handed down to the user in their next gen products.
  • 1 0
 @Bomadics: that’s why I give my body away…
  • 2 0
 @AndrewFleming: will they, or will they just stop raising them so drastically?
  • 3 0
 @HB208: no one will adjust prices, not bike manufacturers, not car manufacturers, no one. That is why its called inflation and it was all bull when economics gurus said that this will be temporary infaltion -- no such thing. I have never witnessed a negative inflation in my life. Once a company and share holders get a taste of profits there is no going back.
  • 1 1
 @Bomadics: um no thanks? lol I thought we were having a bit of banter but now it seems your anus is getting sore?
  • 1 3
 @Caligula1620: One day, far into the future when you learn how to read, you can get your head out of your crotch and rejoin the rest of us, but until then I wish you the best!
  • 2 2
 Negative props------ this site really has turned into a butch of whiney little snowflakes.
  • 1 4
 @Bomadics: lol damn how tilted did you get from that one comment? and lol at you saying I need to learn how to read after you misread who I claimed was making insinuations (I wasn't insinuating umbrage, I was taking umbrage at your insinuations). irony is a cruel dominatrix in your life it seems......
  • 1 0
 Couldn't have said it better in a short sentence.
  • 2 1
 @Caligula1620: Dude go buy a sense of humor, oh right supply shortages!
  • 2 3
 @Bomadics: lol ah I see everything is a joke now that you've firmly put your foot in your mouth. dude I was having a laugh the whole time, now you're just being laughably passive aggressive. anyways thanks for the lols and for being a good sport to dunk on.
  • 3 0
 @AndrewFleming: Everybody buy Sram
  • 1 4
 @Caligula1620: Tell yourself whatever you want, but please do make sure you tell us all more about how you are smarter than me, I really enjoy those bits.
  • 1 3
 @Bomadics: huh? oh you're still going on about this? dude, go ride your bike or something I already forgot you exist.
  • 2 5
 @Caligula1620: Then quit playing tag with me, forgot I exist, you are so full of it your eyes are brown, starting to get under your skin eh, eh, hah.
  • 7 0
 @Bomadics: @Caligula1620 and @Bomadics: Get a room.
  • 1 5
flag Bomadics (Feb 9, 2022 at 15:06) (Below Threshold)
 @AndrewFleming: I know right, the guy is fascinated with my anus!
  • 2 1
 @Bomadics: Is there a slight possibility that you are overworked and underf***ed?
Reason I am asking is: one of my coworkers behaves like you in times of stress at work and another break-up…
  • 1 2
 @Heidesandnorth: I find when people mention " coworkers" they are really talking about themselves, so ya got dumped eh, wanna talk about it?
  • 2 1
 @Bomadics: I doubt you even know what coworkers are, what with your excellent people skills.
  • 1 1
 @Heidesandnorth: Dude, you are third man in in a fight and you don't have a clue what's going on, you are just trolling cause you're bored. You should probably go have a quiet moment with that "co-worker" you keep telling us about!
  • 1 1
 @Bomadics: idk I think he's spot on with his assessment of you being underf*cked. and lol at you calling this a "fight", getting hit in the face must be a war crime in your book XD
  • 1 2
 @Caligula1620: Dude you trolled me and compared me to a criminal sociopath, did you just expect me to lie down like a little girl and whimper.

You both seem to bring sex into every conversation, it seems you both are not getting anything other than your own hands for company.

You want to settle this on the trails I will happily drop you like the beginner you obviously are.
  • 1 1
 @Bomadics: hahahahaha oh my god that was the biggest swing and miss at being tough that I've ever seen! great stuff man you're clearly joking bc nobody would seriously write that who has any self esteem.

and ya I compared you to Shkreli as a joke and you got super butt hurt then put your foot in your mouth and proceeded to whine like a little girl.
I still think this is funny af but if you are ever in the San Diego area please message me I'd love to cash that check your mouth just wrote. cheers
  • 1 2
 @Caligula1620: Ah California, that explains so much, we ride Mountains up here, can you say mountains little guy?

I understand what a joke is, but when I joked back at you you got all offended and got even more personal, if you throw crap at me, I will make you eat that crap every time!
  • 1 1
 @Bomadics: damn them mountains must make you excellent at backpedaling lol. and ok you can claim I was the one offended but everyone can read what happened and your negative props speak for itself. sorry you took so much offense to that one comment, if it makes you stop crying I don't actually think you're comparable to martin. so sorry to have hurt your feelings.
and again do send me a message if you're ever in the area, my gym has plenty of gear you can borrow so I don't do any further permanent brain damage to ya Wink
  • 1 1
 @Caligula1620: have a nice day y'all.
  • 1 1
 @Bomadics from "i'll drop you" to "have a nice day", the reality of online tough guys xox
  • 1 1
 @Caligula1620: Ha, see ya!
  • 1 1
 @Caligula1620: you do understand I meant drop you, as in ride way faster than you on any trail right? I am not juvenile enough to actually threaten someone.
  • 1 1
 @Bomadics: gotcha, just juvenile enough to send "meet me at the trail head and lets race" messages. my mistake
  • 1 1
 @Caligula1620: correct, now yer getting it!
  • 1 0
 @TheOriginalTwoTone: same with Volvo in the US. Raised prices to align with a luxury brand. "They're boxy, but they're good!".
  • 1 0
 @Caligula1620: He is a keyboard warrior and has nothing better to do.
  • 177 2
 Did Shimano steal their stuff back to sell it again?
  • 47 5
 cum sea mi nu websit www.toetally_leggit_shinamo_gea.com
  • 169 18
 Couple of black swan type events, the company is doing well despite them. Yet, people are angry? Should we all be encouraging Shimano, SRAM, Santa Crux, Fox, etc etc. to go out of business? You know, f*ck those evil companies making all the cool toys we folks get to play in the woods/on the mountains with?

I just don't get the constant pessimistic, angry, negative attitude folks have towards folks that make our recreation lives move forward. If it WAS so easy to make incredible products from components and raw materials sourced globally, wouldn't all those haters be magically putting pressure on the 'Big guys'? I mean Heavens forbid a company has some good years that balance out the bad ones.

For those who still enjoy life, rock on and rubber side down. I will await my downvotes....
  • 20 7
 nope gonna upvote this, too many whiners 'round here
  • 13 6
 Exactly. If you want to share in the profits, buy shares in the company (and share the losses as well). If you don't like the price, don't buy the product.
  • 13 5
 I was going to chime in and say kind of the same thing. It’s good they’re making profits so that (among other things) they can continue to make parts for our bikes and invest in more research and development so that their products can become better. No profits = no company=no bike parts. For some reason, people have been brainwashed into hearing profits=evil.
  • 8 1
 Ya. besides the point that they may have taken on a lot of debt in 2020, you also need a lot of cash to grow a company. So if they're building a factory and trying to expand business, they need cash to do so. An earnings report doesn't go that deep into their cash flow and how their debt is structured.
  • 4 7
 You’re spot on. Upvote from me.
  • 30 3
 I suspect the reason people are upset isn't Shimano (or SRAM or otherwise).

It's that big companies in general, bike related or not, have made way more money with COVID lockdowns and general USD printing more than ever before in history (i.e. artificial inflation), while small companies were bankrupted and individuals were either let go or saw their salary stagnate.

It's not fair but it's not Shimano's fault. Besides, lockdowns encouraged way more people to go outside and to do sport, which is a pretty great thing as well, and definitely helped all bike companies for the right reasons.
  • 1 0
 This.
  • 6 2
 US consumer spending has gone through the roof on the back of free money from the Fed.

You generally chose to spend your free money on bikes instead of guns this time, which imho was some great decision making.

However this extra (unexpected) demand sent prices through the roof, ah well, they’ll come down again once Todd and Phillipa are allowed back in the country club.

Go shimano, reinvest, make XT great again.

tradingeconomics.com/united-states/consumer-spending
  • 3 7
flag aljoburr (Feb 9, 2022 at 2:44) (Below Threshold)
 YOU cant trust anyone that profited from pandemic, was not an accident ?
  • 8 1
 @Altron5000: I bought a gun and a bike.
  • 2 0
 @aljoburr: So you are saying, on a mounting bike website, with hundreds of other mountain bikers who enjoy this sport /hobby, that we cannot trust ANY bike or bike component company that had the audacity to make a profit? What the h*ll is wrong with you? So we should be encouraging them to go out of business? She we hope they lay off all their employees? What a lame way to look a life.

I am sure many here agree, I would MUCH rather bike companies have a windfall that another few billion to big pharma or a cable/satellite/movie company or similar.

@TheR ..same Big Grin
  • 1 0
 @Altron5000: wireless XT groupset similar to the wireless ultegra with a single battery in the frame would be awesome. Not a fan of the batteries on the derailleur or dropper post with the SRAM stuff, seems way to easy to end up hosed in the middle of nowhere if you pop a battery off.
  • 59 11
 I did not read anything about profit in this article, only sales and revenue. So are the words "ridiculous" and "absurd" appropriate? Basically the article is stating that there was high demand and Shimano grew to meet it as best they could.
  • 34 124
flag alicialeggett Mod (Feb 8, 2022 at 11:20) (Below Threshold)
 Since they do make a margin on everything they make/sell, even if the margin changes, more sales definitely, massively = more profit.
  • 32 5
 Agree with that, important figures missing from this article and lots of excitable language used.

As you say, demand was (is still?) huge - of course revenue was huge, but we need to see profit to see if the industry is really ripping us off or not.
  • 15 0
 EPS doubled...
  • 63 6
 @alicialeggett: that could not be more inaccurate. A lot more goes into "more profit" than making a margin. With increased shipping/material costs and several other factors, margins and profits could be smaller than the previous year despite higher sales.
  • 3 1
 Unless those margins were significantly leaner due to significantly higher material, production, or distribution costs, there would indeed be a big increase in profits (but would it be 'record breaking'?).

It would be interesting to see the profit info and better understand if the increase in profit was fairly proportional to the increase in overall sales, or if there was a significant margin hit that recent and future price hikes will serve to mitigate. Not sure if sharing those numbers is common practice though...
  • 44 0
 Quick search of their financial reports shows they pulled in a 51.2% increase in gross profit. 2020: 153,083 million yen. 2021: 231,417 million yen for an increase of 78,334 million yen...which is ridiculous and absurd for 1 YOY time period. Net Income saw an 82.8% increase after all costs, taxes, liabilities etc are taken into account.
  • 10 7
 @wilsonians: I'm not surprised at any of that. But the article only presented revenue growth.
  • 4 5
 @HB208: Don't make it too difficult for the armchair economists...
  • 12 1
 @AndrewFleming: Yeah, thats valid. I found those numbers in 30 seconds, not sure why they wouldn't include it since it gives good context.
  • 1 5
flag Caiokv (Feb 8, 2022 at 12:00) (Below Threshold)
 @wilsonians: Are those numbers for the whole year, or for the first quarter?

And how do they compare with the past 5 years?

A lot more information than what was provided in the article is needed to make any assumptions.
  • 5 1
 Operating income is revenue less operating expenses, so it's basically pre-tax and pre-depreciation profit.
  • 42 0
 @Caiokv: www.shimano.com/en/ir/library/cms/contents/Summary%20of%20Financial%20Results%20FY2021-Q4.pdf

Consolidated financial statements for all of FY21.

5yr
Gross Profit (millions yen):
2021: 231,417
2020: 153,083
2019: 140,591
2018: 136,572
2017: 137,456
2016: 131,537

So while they have been growing YOY as expected, the 51%+ from 2020-2021 is insane. Yes, yes I know there are a lot of factors but as a quick glance thats pretty nuts.
  • 3 1
 @wilsonians:

Thanks, this gives a little more perspective on the subject!

I wonder how this will affect 2022 numbers
  • 9 8
 @wilsonians: Gross Profit is before expenses. We would need to see what their Net Profit is to see how much they actually earned. If they are like most every other company last year, their revenue was up but their net profit was down overall percentage wise due to everything costing more.
  • 9 0
 @n8dawg82: "Earnings per share nearly doubled from 2020 to 2021."

EPS is a function of net income, so no, that's not the case.
  • 22 0
 @n8dawg82: Let me help you with that.

Net Income (millions yen)
2021: 116,132
2020: 63,525
2019: 51,857
2018: 53,939
2017: 38,464
2016: 50,894

and based on the 2021 financial reports they are forecasting 117,500 net income for FY22

While context was left out of the article, the same thread goes thru all of their financials. They made record sales, profits, income etc. even after all the supply chain and cost issues.
  • 13 3
 The problem is that the authors do not understand accounting and were not able to make sense of the data and form a financially literate statement, which most readers also aren’t able to do.

ycharts.com/companies/SHMDF/financials/income_statement/1

This financial data should give you a better idea.

Like many industries, I don’t believe that Shimano will be able to maintain their rate of business as a result of more people playing outside.
  • 11 2
 Can we please stop talking about shimano’s “supply chain issues”? There may be a bottleneck on the supply side of their production systems, but the supply chain is clearly not the real issue. They increased sales almost 50% AND improved inventory? Any supply chain would struggle with that, but the “problem” is clearly with demand. If Shimano sales were flat they would have a few hiccups like everyone else right now, but in general they wouldn’t have any issue with availability. And somehow we’re surprised that a company with huge sales growth is posting record profits?

While we’re talking about exploding demand for shimano, I have to think that this is a sign of things to come. SRAM better find an answer to Deore/SLX quick or they might as well discontinue everything below GX.
  • 23 0
 @wilsonians: The increase from 2016 to 2017 was partly me I wreaked Three XT derailleurs.
  • 5 23
flag stickysidedown (Feb 8, 2022 at 14:22) (Below Threshold)
 @alicialeggett: This is a terrible take. As a learning opportunity maybe you should enroll in a econ 101 course, high school level should suffice.
  • 16 5
 Using “ridiculous” in the headline is editorializing, which was a bad journalism.
  • 10 0
 @stickysidedown: you learn this in accounting and not economics. I’m sure that you’re very educated and know this
  • 5 0
 @Mntneer: I'm a CPA. Can confirm.
  • 4 1
 @HB208: I somehow have taken 6 accounting classes between undergrad and an MBA and still somewhat dread actual accounting
  • 3 6
 @Mntneer:
Educated enough to know that more sales does not (necessarily) equal more profit.

Pretty sure i learned this in high school econ, but i am sure you are right.
  • 2 2
 @alicialeggett: i want to downvote such a silly retort but -69
  • 3 4
 @alicialeggett: can’t believe your in the negative on this one. Your logic is sound to me
  • 1 2
 @alicialeggett: cost of capitol, ROI, all good down when margin goes down.
  • 4 0
 @alicialeggett:
I think that’s a fair comment. Given that I couldn’t get hold of a 11-51t cassette for love nor money in 2021, could you ask Shimano what the they could have sold without all the supply chain issues?
  • 1 0
 @HB208: EPS, by definition, is calculated as a company's profit divided by the outstanding shares of its common stock.
  • 1 0
 @Kopsis: Yes, net income and profit are the same thing. Profit isn't really a term in financial reporting.
  • 1 0
 @bertimusmaximus: Say, what does the capitol cost?
  • 35 2
 “Savings passed to the consumer”
“Unprecedented supply chain issues”

- “We really do want more money”, Mr. Shimano
  • 24 1
 These are 2030 Profits from when we actually receive the parts
  • 3 2
 Well aren’t we the optimistic type /s

I’m actually seeing more availability recently. No issue getting brake pads or chains.
  • 3 4
 @jason3559: I have been able to source any Shimano part I want throughout the entire pandemic by buying new off eBay from reputable sellers.
  • 16 0
 Imagine the sales numbers if their factories weren’t catching on fire lol
  • 19 3
 More people going fishing
  • 4 0
 ... while Shimano gone phishing
  • 14 2
 Makes sense. When you have nothing to sell, but sell it anyways, profits are great!
  • 5 2
 Well this is revenue. Before they account for losses, expenses and such. Its kind of like flaunting with very little reason. Profit is where you really flex the muscles. Shows how well the company is actually doing.
  • 6 0
 Maybe now people can stop repeating that old, inaccurate line about how Shimano makes sooooo much more money from their Fishing product, and that they don't care about innovation in bike because it's not anywhere near as important to them as the Fish stuff.
  • 3 1
 It’s not totally inaccurate. Shimano does care about cycling just not the very niche subsection of cycling we all care about which is mid to high end mountain bike components, so it appears like they don’t.
  • 9 1
 amazing since I have had to warranty my XTR shifter once and my rear brakes 3 times.
  • 7 2
 In the last 2 years I've Used a Garbaruk, e13 helix, and Sun Race cassette and three YBN chains and all were as good and cheaper than the SRAM/Shimano counterparts. People need to realize that the media push the idea anything that isn't from the people who buy the biggest ad space (Sram/Shimano) is inferior, it isn't.
  • 8 0
 Ma boi Shozaburo looking fresh AF
  • 8 0
 Updated SAINT brakes let's go
  • 15 0
 Why did I read this like Ricky asking Cory and Trevor for smokes
  • 6 1
 How is this possible when even the Shimano diehards I personally know moved over to SRAM simply because they could actually find SRAM replacement parts?
  • 4 0
 E-bike motors
  • 3 0
 They make most of their money from low end market. Massive orders for wall mart bikes etc.
  • 1 0
 @thenotoriousmic: Not sure what you'd consider the "low" end of the market, but I think in commuting they're dominant. No one seems to have as many OEM geared hubs and hub dynamos spec'd on these bikes. And rightly so. Nexus and Alfine hubs usually work well, SRAM geared hubs don't. Even with e-bikes, now that more and more come with mid-motors, these geared hubs are still in high demand even for these bikes. Also, most brakes on commuter e-bikes here seem to be either Shimano or Magura. And with that also comes the increased demand for replacement/wear parts. I already stretch my singlespeed chains on my commuter (running Nexus 7sp hub) quite fast because I pedal hard, but according to the people in my local bike shop it is pretty insane with these mid-motor e-bikes. So they may sell a motor once, but then sell loads of chains afterwards.
  • 1 0
 @vinay: yes that exactly the type a low end I’m talking about. There’s way more money in that than electronic 12 speed drivetrains.
  • 1 0
 @thenotoriousmic: One mans low end is another mans high end Wink . I don't understand shit about electronics let alone all these wireless protocols. But watching these 7 or 8 speed geared hubs work, that's actual nice stuff to look at. And considering the (lack of) maintenance they need, it is even more impressive how much load is going through all these little gears. Not rarely pushing 200kg system weight up the hill. Don't want to know what it is when it is driven with both leg power as well as power assist. Work, shops, bringing the kids places. XTR is for a hobby, Nexus is what makes the world go round. (Is this considered trolling?)
  • 4 0
 Demand is about to drop considerably though! you know how many late season fat bikes are trickling in and no one wants!!! its the start to overstock I am pretty confident about this.
  • 3 0
 Agreed, the number of people currently selling bikes, paddle boards, camper vans etc to pay for foreign holidays now that covid is over is pretty telling of what to expect for the next few years.
  • 1 1
 @thenotoriousmic: What are they going to do on a holiday without camper, bike and paddle board? Just play uke around the campfire?
  • 1 0
 @thenotoriousmic: Campervan asking prices are still pretty high. I've been hoping prices to come down since last September....
  • 1 0
 @thenotoriousmic: Honestly, alot of people have tried new sports simply to get out of the house, but once you've taken in all that the local area has to offer then it gets old. Example, we bought kayaks years ago, enjoyed the local 1 hour drive places and once we had our experience it got old quick. We sold the kayaks and moved onto other things....

My point is, alot of these sports might be exciting the first year, but when the sense of adventure gets old and you don't feel like taking it to the next level, people will 100% sell their sporting equipment.

Snowmobiling is the best example, the last 2 years people went nuts for them, but honestly, its a 8 weekend sport tops, with hit or miss snow conditions and trial closures, and its super expensive and high maintenance. you need to drive hours to make it worth while and hit the legit trails.

I anticipate you will see many many many snowmobiles for sale and people trying to cut their losses. I won't be shocked if there is a flooded market of used shit and drastic decrease in demand for new 22K sleds in the coming years.
  • 2 0
 Is it just me or Shimano either lowered their the quality control or made their 12s groupset inferior in terms of quality compared to 11s?
I've seen a lot of complains from the shifters and the RD and that's with the XT/XTR, which is still supposedly made in Japan.
  • 2 0
 I have an XT 11speed and 12 speed.

The 11 speed shifter feels like a much higher quality product /ergonomics are better for me.

Derailleurs seem pretty similar.
  • 1 0
 @Ososmash: I've seen a lot of complains about moisture ingress and seized clutches. Some after mere 300km. I started seeing tutorials about clutch service after 12s was released.
My 11s XT has never been serviced and the clutch still moves freely after 3 years of abusive. Most of my friends are still on 11s mix of XT/XTR and nobody had problems for years, besides one snapped XTR cage.
  • 24 21
 Record profits, even in the face of acute supply chain problems. This isn't a bike issue, it's a late-stage capitalism issue.
  • 8 3
 It's probably just a capitalism problem.

Who knows if we are in "late stage capitalism."
  • 8 6
 I’m not sure why this is a problem?
  • 15 2
 They don’t really have “supply chain problems” though. Sales are up almost 50% and they still seem to have produced enough extra parts to stabilize inventory. Yes the supply chain struggled to keep up, but no supply chain can just suddenly churn out 50% more product. This is 100% a demand problem.

This isn’t a company failing to meet expectations but still making money. This is a company making better products that more people want and getting rewarded for it.
  • 3 0
 Every Shimano spec’d bike is super delayed tho, not sram. The bike i wanted was full slx and they put it to nx because of it and now im not buying that bike.
  • 5 0
 Yet... I cannot buy a 12sp cassette anywhere.
  • 2 0
 The same on this side of the Atlantic too…
  • 8 4
 Can we vote to put articles behind the paywall in exchange for better ones? Willing to do trade-ies at a 4:1 ratio
  • 4 0
 98% of the growth has been accredited to sales of 12 speed Rear Derailleur Chain Stabilizer Units (clutches).
  • 3 0
 Now that is a clever joke. Or I'm not smart enough to get it. I'm not sure.
  • 4 3
 I would bet you their net profit margin when it is all said and done is within 3% of what it typically is. The producer price index went way up last year. Shipping costs skyrocketed and they probably had to put a lot of capital into being able to ramp up production to catch up.
Also, it's HILARIOUS that some of you seem to think there would be any advances or even the maintaining of current bike technology/reliability if capitalistic motivations went away. By all means, tell me about these great bikes and parts that are made by people who aren't trying to make any money producing them.
  • 4 0
 top tier dirt bike prices went up by $200 for 2022 models. the mtn bike companies are pulling some BS.
  • 3 1
 urrghh.. wanted to buy some of their stock last year.. sadly on the Tokyo Stock exchange, there are minimum amounts of what you have to buy.... was a bit too much for a single position...
  • 3 1
 Bike companies making loads of money is great for the sport. Unsure why everyone is moaning. Probably the same people moaning that racers are t getting sponsored, which comes out of said profit. Idiots.
  • 3 0
 I think far fewer people would be moaning if there weren't grievances regarding the company's product or service/availability.
Idiot.
  • 2 1
 @Tambo: I have no issues with the products, and the issue is more that everyone has been panic buying drivetrains. If it bothers you that much that a company has made money go and buy something else.
  • 3 0
 @mattyb84: eh? Panic buying drivetrains? lol The thing that bothers me is they'll continually hammer down the quality of their products which is bad for consumers and the environment, but profits will soar. I don't believe they have their customers best interests at heart. Sadly, while there are other options I'd gladly use, none were available at a reasonable price when I needed them - this is partly a result of the 2S duopoly, which looks very much set to continue
  • 3 0
 I wonder if they will take a leaf out of oil companies books and pass some of this onto the consumer? Wait, what the f**k, who am i f*****g kidding!
  • 1 0
 Well deserved, Shimano.

Everytime i am "forced" to work with SRAM/Rockshox, i end up compromising...
Latest example: why the hell did SRAM changed the bleeding bolt diameter on code series? To make our bleeding sets, useless? And to force us buy the new bleeding kit? on the same set the lever bolt remained as it was and the caliper one is bigger.

kudos !!!!
  • 5 2
 How can they be breaking revenue numbers when I can't find any decent shimano stuff to buy?
  • 5 0
 Probably OEM sales
  • 5 0
 People and OEs are still ordering the stuff, even if it's years until the receive it
  • 6 2
 This is revenue, not profit.
  • 2 0
 I wonder how much there margin is up for simply no longer including the chainring lockring tool with XT cranks and still charging t$150 ish retail price....sons a bitches!
  • 4 0
 Remember when SunTour was a thing?
  • 1 0
 Suntour groupset is the ultimate differentiator in the Vintage MTB community! : www.ebay.com/itm/384714464417?hash=item5992c4dca1:g:yWUAAOSwJWBh~B7H
  • 1 0
 @zoobab2: Some of Suntour's stuff was really nice back when thumb shifters were still a thing. Their BMX freewheels were also very good
  • 3 0
 I'm patiently waiting for the return of XC PRO.
  • 1 0
 @Rektek37: I am sure Suntour has the capacities to produce a groupset. They already do cranksets.
  • 2 0
 @thanksshimano on insta. Have a good evening with beer or/and popcorn. You could see the reason of the mega growth of the company there. Have fun)))
  • 2 0
 This is the state of the bike industry and Pinkbike has done nothing but normalize high prices for this industry a la $3000 being an “affordable mountain bike”
  • 3 0
 Someone’s getting a new yacht!!! Not me but somebody else is!
  • 2 0
 Wasn't this Peloton, exactly 18 months ago? Not saying the Shimmy boys are going anywhere, but best to save those pennies.
  • 5 0
 Yeah probably same idea, but I'd guess Peloton is experiencing more dramatic effects since their product (digital workout platform) is less pandemic-proof than bikes
  • 5 0
 Anyone that couldn't see that Peloton was a bubble was blind. Their stock soared because of lockdowns. Once lockdowns eased people went outside. Even during the latest surges very few places actually locked down. Peloton created their own demise. Turn someone on to exercise. That person gets fit. Decides maybe I should ride a real bike outside, maybe even with real people. People realize it's more fun. Now that person has a real bike that fits them correctly. Person that still wants to ride inside on occasion buys a significantly cheaper bike trainer for the bike they now have. Also their treadmill rollout was a disaster.
  • 2 0
 @georgiamtbiker: can we get more on this?
Maybe @mikelevy could even get some interviews going about the main ‘indoor’ cycling activities people participate in?
  • 2 1
 Yep, shimano and Sram have the best stuff! All their current drivetrains and brakes are very reliable which wasn't always the case. Kudos because they deserve the sales!!
  • 1 0
 To combat higher prices everybody should boycott by not riding. I’ll lead the charge by riding around on the trails spreading the word
  • 1 0
 @tacolord: Being Japan I can assure you the workers were forced to work a bunch of hours for free, to express their loyalty to the company. Japan's labor laws are woeful.
  • 2 1
 wow great we dont have to pay to read this article and join a subscription model.
  • 1 0
 Confusing use of the word margin. Technically correct, but very confusing given the financial context.
  • 4 2
 record sales and profits yet prices still go up.
  • 6 2
 Article mentions revenue, not profit...
  • 4 1
 @bman33: Their profits have gone up though. same with energy companies.
  • 4 2
 @mtb-scotland: I have zero issue with bike industry profits going up. Why is that bad? Should others be angry if you improve your financial situation?
  • 6 1
 @bman33: No one cares if their profits go up. Its the price increases that are coming on the heals of record profits.
  • 3 2
 @wilsonians: record revenue. Revenue does NOT = profit. In addition, I'm pretty sure most of their expenses are going up just like every other company that competes in Western markets. Maybe they had record profits as well, this article does not address. However, if everything goes into making your product including labor goes out you have no choice or you'll be out of business.
  • 3 0
 @bman33: See my comments above. Their gross profit went up 51% YOY. Their Net Income went up over 80%. Yeah this article was weird cuz I pulled those #s in 30 seconds from their financial reports so I am not sure why they didnt include. But the record numbers waterfall thru everything.
  • 3 1
 @wilsonians: @wilsonians: As an engineer, I know jack sh*t about accounting. But can I conclude that since sales went up by half as well, the profit margin stayed about the same? In other words they still get the same percentage of our hard-earned money?
  • 3 0
 @ak-77: Generally speaking for profit margin you can take net income/net sales. Last year that was 16.8%. This year it was 21%. So it SEEMS like they are making more profit margin while at the same time having record sales. And we of course are still seeing price increases.
  • 2 1
 i just like bikes.... but everything now is expensive and probably wont go back
  • 1 0
 All indications good. I think i’ll switch my life savings of £3.20 out of the savings account into Shimano shares.
  • 2 0
 83% increase in operating income lol. Kinda comical.
  • 2 0
 I have four bikes, with four different brake pad shapes all from Shimano.
  • 2 0
 Bicycle prices and components are stupid atm. Let them eat cake
  • 1 0
 Amazed at the lack of Shimano Brake jokes here. Something something, wandering bite point.
  • 1 0
 This just in: business exist to maximize profit, not care about what your think is reasonable revenue.
  • 1 0
 High prices trigger warning. O.O According to comments here, hopefully Shimano gets their supply chain back online soon
  • 1 0
 Shimano broke its revenue and earnings records by absurd margins” ya no SHI! Since they jack up all the prices by 100%
  • 1 0
 If these record results help them get out a wireless XT group sooner rather than later then I'm all for it
  • 1 0
 Imagine their profits if they were actually able to meet the demand, I suspect it would nearly double again.
  • 1 0
 Let's ALL go 7 days and buy zero bike related items and the see what happens.
  • 2 1
 In the meanwhile SRAM didn't see record breaking sales Big Grin
  • 1 0
 Money laundering happening at Shimano
  • 1 0
 How in the hell is this article in not behind a paywall?
  • 1 0
 cool. still cant get a 12s chain anywhere
  • 1 0
 I bought two a couple months ago to hopefully make it through the shortages. Sorry, not sorry.
  • 1 0
 but i thought we were in a bubble?
  • 1 0
 See Article about merchandise theft
  • 1 2
 涨价，断货。unfortunately i started assembling my first commencal clash last year and everything was expensive. The frame still didn’t come to me now.
  • 1 0
 Just hoping this bolsters the R&D budget
  • 1 0
 i just want my derailleur that i ordered a year ago!!!!
  • 1 1
 this is what the pinkbike audience wants to see LOL
  • 1 0
 remember the canadian youtuber sean lamothe who "gave the people what they want"?


That guy was a legend
  • 1 3
 I'm all for Shimano doing well, they the gold standard in the bike industry and aren't ever going to start producing crap products.
  • 2 1
 Undeserved.
  • 2 1
 Well done Shimano.
  • 1 0
 BFI was an inside job?
  • 1 0
 Absurd.
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