Noritz (5943) Q4 2024 earnings summary

Executive summary

• Fiscal 2024 net sales rose 0.2% year-over-year to ¥202.2 billion, with operating income down 37.6% to ¥2.4 billion and net income up 404.4% to ¥4.4 billion, driven by a ¥3.9 billion gain from investment securities sales.

• Domestic business saw recovery in water heater demand and growth in thermal solutions, while overseas business faced sluggish conditions, especially in China.

• The first year of the "V-plan 26" Medium-Term Management Plan focused on business portfolio transformation, strategic investments, and sustainability.

Financial highlights

• Net sales: ¥202.2 billion (+0.2% year-over-year); operating income: ¥2.4 billion (–37.6%); ordinary income: ¥3.5 billion (+187.5%); net income: ¥4.4 billion (+404.4%).

• Operating margin declined to 1.2% from 1.9% in 2023.

• Cash and cash equivalents at year-end: ¥27.3 billion, up ¥2.1 billion from prior year.

• Net cash from operating activities: ¥8.6 billion; capital expenditures: ¥10.4 billion; depreciation: ¥7.6 billion.

• Total assets: ¥223.8 billion; net assets: ¥136.9 billion; equity ratio: 59.0%.

Outlook and guidance

• 2025 plan targets net sales of ¥205.0 billion and operating income of ¥3.0 billion.

• Revised 2026 plan under "V-plan 26" aims for net sales of ¥210.0 billion and operating income of ¥4.5 billion.

• Focus on expanding hybrid water and space heating systems, high-efficiency gas water heaters, and kitchen appliances domestically; rebuilding China business and expanding in North America and Southeast Asia.