Financial Results of Fiscal 2024, ended March 31, 2024
May 9, 2024
Disclaimer
Forecasts, projections, strategies, and other forward-looking statements contained in this
document are based on information currently available to the Company and certain
assumptions that the Company believes are reasonable. Actual results may differ materially from these statements due to various risks and uncertainties. This material is
for informational purposes only and is not intended as a solicitation to trade.
©Rinnai Corporation | 2 |
- Fiscal 2024 Results
- Review of Medium-Term Business Plan (New ERA 2025) and Future Outlook
- Fiscal 2025 Outlook
3
Fiscal 2024: Consolidated Performance Overview
Net sales: ¥430.1 billion (up 1.2% year on year)
Record-high level
[vs target*: down 2.2%]
Despite weak market conditions in the first half of the year, inventory levels began to optimize in the second half, leading to record-high net sales
Operating income: ¥39.3 billion (down 5.0% year on year; Operating income to net sales ratio:9.2%) Normalization of the production system and cost reductions in the second half largely compensated
for our negative performance in the first half | [vs target*: up 0.9%] | |
Record-high level | ||
Ordinary income: ¥46.0 billion (up 3.4% year on year; Ordinary income to net sales ratio:10.7%) | ||
Increase with the help of foreign exchange gain | [vs target*: up 4.7%] | |
Net income attributable to owners of the parent company: ¥26.6 billion
(up 2.2% year on year; Net income to net sales ratio: 6.2%)
[vs target*: up 6.7%]
*"vs target" indicates the figure compared to performance forecasts announced August 4, 2023.
- First half: Weak sales due to cooling consumer confidence caused by rising prices and high interest rates
- Second half: Due to optimization of inventory levels, both sales and profit recovered significantly, with second-half profit reaching a record high
©Rinnai Corporation | 4 |
Fiscal 2024: Consolidated Financial Results | |||||||
Net Sales | Operating Income | Attributable to owners of the parent company | |||||
Net Income | |||||||
[Billions of Yen] | [Billions of Yen] | [Billions of Yen] | |||||
450 | 45 | 45 | |||||
300 | 30 | Operating income to | 30 | ||||
11.8% | net sales ratio | Net income to | |||||
9.8% | 9.7% | ||||||
150 | 9.2% | 15 | 8.0% | net sales ratio | |||
15 | |||||||
6.5% | 6.1% | 6.2% | |||||
0 | 0 | 0 | |||||
FY2021 FY2022 FY2023 FY2024 | FY2021 FY2022 FY2023 FY2024 | FY2021 FY2022 FY2023 FY2024 | |||||
- Net sales up for fourth consecutive year, partly due helped by foreign currency translation
- Profits volatile over past four years due to supply-demand imbalance and supply chain disruptions
©Rinnai Corporation | 5 |
Fiscal 2024: Net Sales by Product
Fiscal | Fiscal | YOY | |||||
[Billions of yen] | 2023 | 2024 | Change | ||||
Amount | % of total | Amount | % of total | Amount | (%) | ||
Water heaters | 258.65 | 60.8% | 263.83 | 61.3% | +5.18 | +2.0% | |
Kitchen | |||||||
91.78 | 21.6% | 90.49 | 21.0% | -1.28 | -1.4% | ||
appliances | |||||||
Air | 21.94 | 5.2% | 21.74 | 5.1% | -0.19 | -0.9% | |
conditioning | |||||||
appliances | |||||||
Commercial- | |||||||
10.66 | 2.5% | 11.21 | 2.6% | +0.54 | +5.1% | ||
use equipment | |||||||
Others | 42.17 | 9.9% | 42.89 | 10.0% | +0.71 | +1.7% | |
Total | 425.22 | 100.0% | 430.18 | 100.0% | +4.95 | +1.2% | |
©Rinnai Corporation | 6 |
Fiscal 2024: Consolidated Sales/Income Results
[Billions of yen] | Net Sales | YOY | Operating | YOY Change | Operating | YOY |
Change | Income | Margin | Change | |||
Consolidated | 430.18 | +1.2% | 39.36 | -5.0% | 9.2% | -0.6pt |
[Billions of yen] | Net Sales | YOY | Operating | YOY Change | Operating | YOY |
Change | Income | Margin | Change | |||
Japan | 192.35 | -2.3% | 17.96 | -23.9% | 9.3% | -2.6pt |
United States | 57.87 | +3.8% | -1.19 | - | -2.1% | -2.6pt |
Australia | 30.33 | +9.7% | 1.24 | +5.6% | 4.1% | -0.2pt |
China | 71.88 | +8.7% | 12.14 | +14.9% | 16.9% | +0.9pt |
South Korea | 31.87 | -0.7% | 0.01 | -97.7% | 0.1% | -2.1pt |
Indonesia | 14.91 | -8.0% | 2.74 | +14.4% | 18.4% | +3.6pt |
Others | 30.94 | +1.3% | 4.36 | -10.5% | 14.1% | -1.9pt |
Adjustments | - | - | 2.07 | - | - | - |
7 |
Fiscal 2024: Consolidated Operating Income Analysis
[Billions of yen]
Effect of domestic
41.41 revenue decrease
-13.78
Decreased
fixed
costs in
Effect of local Japan revenue
increase at
overseas
subsidiaries
+7.94 +3.04
+4.24
Increased
fixed costs overseas
-5.45
-3.11
YOY change
-2.05 billion
Cost-
cutting 39.36
Effect of efforts, etc. raw
materials
prices
-0.15 +6.35
-0.53
*Overseas local
procurement
FY2023 | FY2024 | ||
Forex effect +0.60 |
- Reductions in fixed costs in Japan and overseas and cost reductions resulting from recovery in production significantly curbed the profit decline in the first half
©Rinnai Corporation | 8 |
Japan Fiscal 2024 Results
*From April 2023 to March 2024
- Segment companies
Rinnai (non-consolidated basis), domestic consolidated subsidiaries (manufacture and sales of products)
■ Main products | Net sales by product |
(Fiscal 2024 results) |
- Non-consolidatedresults of major company Rinnai (non-consolidatedbasis)
- Recovery trend due to optimization of distribution inventories through the second half and entrenched effects of price revisions
- Increase in sales of key products such as hybrid water heaters
Commercial-use equipment 1% | |||
Built-in hobs | Gas clothes | Others | |
(stovetops) | dryers | 14% | |
Water | |||
Kitchen | heaters | ||
appliances | 51% | ||
30% | |||
Hybrid water | Dishwasher/ | ||
heater | dryers | Air conditioning |
appliances 4%
- Segment results
[Billions of Yen] | Fiscal | Fiscal | YOY |
2023 | 2024 | change | |
Net Sales | 196.83 | 192.35 | -2.3% |
Operating Income | |||
23.59 | 17.96 | -23.9% | |
Operating income to | |||
12.0% | 9.3% | -2.6pt | |
net sales ratio | |||
Rinnai (non-consolidated basis),
Fiscal 2024 Results
■:Net sales ■:Operating income | (Billions of yen) |
-●-:Operating income to net sales ratio |
204.92242.44 210.52
14.27 | 19.87 | 15.10 | ||||
Fiscal 2022 | Fiscal 2023 | Fiscal 2024 | ||||
[Billions of Yen] | Fiscal | Fiscal | YOY | |||
2023 | 2024 | change | ||||
Net Sales | 242.44 | 210.52 | -13.2% | |||
Operating Income | ||||||
19.87 | 15.10 | -24.0% | ||||
Operating income to | ||||||
8.2% | 7.2% | -1.0pt | ||||
net sales ratio | ||||||
Quarterly Operating Income
(Billions of yen)
6.25
4.78
1.60 | 2.46 | |||
[Sales Volume in Japan] | YOY | |||
change | ||||
Water heater with heating | -16.3% | |||
systems | ||||
Water heater with bath-filling | ||||
-25.2% | ||||
systems | ||||
Built-in hobs (stovetops) | -3.9% | |||
Gas clothes dryers | -2.7% | |||
©Rinnai Corporation | 9 |
United States Fiscal 2024 Results
*From January to December 2023
■ Segment company
Rinnai America
■ Main products | Net sales by product | ||
(Fiscal 2024 results) | |||
Commercial-use | Others | ||
equipment 1% | 5% | ||
Non- | Condensing water | Air conditioning | |
appliances | |||
condensing | heaters (High- | 6% | |
water heaters efficiency models) | |||
Water | |||
Condensing boilers | heaters | ||
88% |
- Segment results
[Billions of Yen] | Fiscal | Fiscal | YOY |
2023 | 2024 | change | |
Net Sales | 55.75 | 57.87 | +3.8% |
Operating | |||
0.31 | -1.19 | - | |
Income (loss) | |||
Operating | |||
income (loss) to | 0.6% | -2.1% | - |
net sales ratio | |||
- Non-consolidatedresults of major company Rinnai America
- Adjustments of inventories, which had been high since the beginning of the fiscal year, due to sales promotion and production cutbacks, ran its course
- Inventory optimization led to reductions in warehousing fees, labor costs, and sales promotion expenses, and reduced cumulative losses
Rinnai America, Fiscal 2024 Results
■:Net sales ■:Operating income | (Billions of yen) | |
-●-:Operating income to net sales ratio | ||
Quarterly Operating Income | ||
44.75 | 55.75 | 57.87 | (Billions of yen) | |||||
1.37 | ||||||||
0.68 | ||||||||
-1.77 | -1.47 | |||||||
2.01 | -2.1%-1.19 | |||||||
0.30 | ||||||||
Fiscal 2022 | Fiscal 2023 | Fiscal 2024 | ||||||
Fiscal | Fiscal | YOY change | ||||||
[Billions of Yen] | [Sales Volume] | YOY change | ||||||
2023 | 2024 | Yen | Local | |||||
currency | ||||||||
Tankless water | ||||||||
-5.8% | ||||||||
Net Sales | 55.75 | 57.87 | +3.8% | -3.4% | heaters | |||
Operating Income (loss) | 0.30 | -1.19 | - | - | Condensing water | |||
heaters of total | ||||||||
-13.6% | ||||||||
Operating income (loss) | (High-efficiency | |||||||
0.6% | -2.1% | - | ||||||
to net sales ratio | models) | |||||||
©Rinnai Corporation | 10 |
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Rinnai Corporation published this content on 08 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 May 2024 02:00:05 UTC.