Stable revenue growth accompanied by improved management efficiency

「Although costs increased due to persistently high prices for materials, energy and components, business profit increased to ¥38,500 million, up 22.9% year on year, owing in part to efforts to optimise selling prices, mainly in Japan, improved sales, particularly in Europe, and the cost-reduction effects of structural reforms.」

「Business profit increased to ¥16,862 million, up 60.4% year on year, and operating profit increased to ¥11,407 million, up 15.5%, driven by the recovery in European sales and growth in renovation sales in Japan. Although financial expenses increased due in part to foreign exchange fluctuations, profit before tax from continuing operations also increased to ¥4,459 million, up 9.1% year on year.」

「Although costs increased due to persistently high prices for materials, energy and components, business profit increased to ¥31,337 million, up 35.3% year on year, owing in part to efforts to optimise selling prices, mainly in Japan, improved sales, particularly in Europe, and the cost-reduction effects of structural reforms.」

「On the earnings front, business profit increased 18.9% year on year to ¥10,511 million and operating profit increased 49.0% to ¥9,880 million. Although finance costs increased due in part to higher interest expenses, interim profit before tax also increased 54.5% year on year to ¥4,087 million.」

「Although efforts continued in Japan and overseas to implement structural reforms, optimize selling prices and improve profitability, business profit declined 10.0% year on year to ¥23,162 million because higher costs resulting from persistently elevated material, energy and component prices, together with lower revenue caused by softer demand and weak market conditions, particularly in the overseas business, could not be fully offset.」

「Against this backdrop, revenue for the first 3 quarters of the current consolidated fiscal year declined slightly by 0.1% year on year to ¥1,122,938 million. On the earnings front, business profit increased 26.7% year on year to ¥26,613 million and operating profit increased 5.0% to ¥25,459 million, returning to growth. However, profit before tax from continuing operations declined 10.5% to ¥19,176 million due in part to higher finance costs associated with increased interest-bearing debt and higher interest rates.」

「Against this backdrop, revenue for the first 2 quarters of the current consolidated fiscal year declined slightly by 0.1% year on year to ¥732,249 million. On the earnings front, business profit increased 43.6% year on year to ¥8,839 million, returning to growth. However, operating profit declined 33.9% to ¥6,631 million, partly because gains on the disposal of land and other assets recognized in the year-earlier quarter did not recur, while profit before tax from continuing operations declined 73.5% to ¥2,645 million due in part to higher finance costs associated with increased interest-bearing debt and higher interest rates.」

「On the earnings front, business profit declined 46.3% year on year to ¥3,744 million. Operating profit declined 79.9% to ¥2,425 million, partly because gains on the transfer of land and other assets recognized in the year-earlier quarter did not recur. Profit before tax from continuing operations declined 97.8% to ¥149 million, partly due to higher finance costs associated with increased interest-bearing debt.」

「Revenue increased by ¥67.4 billion year on year to ¥1,496.0 billion due to yen depreciation and price revisions. However, because the full increase in costs could not be absorbed during the fiscal year due to the time lag between cost increases and price revisions, business profit declined by ¥39.1 billion year on year to ¥25.7 billion, resulting in higher revenue but lower profit.」

「Against this backdrop, revenue for the first 3 quarters of the current consolidated fiscal year increased 4.6% year on year to ¥1,123,817 million. On the other hand, business profit declined 66.0% year on year to ¥20,997 million.」

「On the other hand, business profit declined 83.5% year on year to ¥6,156 million, operating profit declined 73.0% to ¥10,039 million and profit before tax from continuing operations declined 71.9% to ¥9,995 million, with each showing a decline.」

「On the other hand, business profit declined 69.8% year on year to ¥6,977 million, operating profit declined 49.6% to ¥12,067 million and profit before tax from continuing operations declined 47.5% to ¥12,031 million, with each showing a decline.」

「In this sense, as a result of the various structural reforms pursued over several years, we believe that we have transformed the business to a level at which its underlying structure can achieve the 7.5% business profit margin that we have targeted as a medium-term performance indicator.」

「Although business profit continued to be affected by higher material and transportation costs and difficulty procuring components due to the renewed spread of infections, strong demand centered on the European and U.S. markets in the Water Technology business, together with efforts to review selling prices in Japan and overseas and reduce selling, general and administrative expenses, lifted business profit 36.6% year on year to ¥61,751 million. As a result, the business profit margin improved by 1.4 percentage points to 5.7%, the gross profit margin improved by 1.0 percentage point to 34.8% and the selling, general and administrative expense ratio improved by 0.4 percentage points.」

「On the earnings front, business profit was ¥37,271 million, 2.4 times the year-earlier level, operating profit was ¥37,161 million, 3.1 times the year-earlier level, and profit before tax for the quarter was ¥35,593 million, 3.3 times the year-earlier level, representing substantial increases from the year-earlier quarter, which was most severely affected by the spread of COVID-19.」

「Business profit reached a record ¥23,076 million for a first-quarter consolidated cumulative period, supported by strong markets in Europe and the United States in the Water Technology business, higher revenue from renovation products in Japan and lower selling, general and administrative expenses through improved productivity. Business profit increased by ¥25,709 million year on year. As a result, the business profit margin improved by 7.5 percentage points to 6.7%, the gross profit margin improved by 5.0 percentage points to 36.2% and the selling, general and administrative expense ratio improved by 2.5 percentage points.」

「The performance of our group during the current consolidated fiscal year was substantially weaker in the first half due to the suspension of economic activity caused by the spread of COVID-19. Although demand recovered in the second half in the overseas business, particularly in the United States and Europe, revenue declined 9.0% year on year to ¥1,378,255 million. On the earnings front, the impact of lower revenue was offset by the effects of continued gross profit margin improvements in the domestic business, various measures to improve employee productivity and reductions in selling, general and administrative expenses through expense-control measures implemented during the pandemic. As a result, business profit increased 9.6% year on year to ¥57,288 million.」

「Revenue for the first 3 quarters of the current consolidated fiscal year declined 9.9% year on year to ¥1,035,509 million. Business profit declined 13.8% to ¥45,220 million. Although the decline in gross profit caused by lower revenue and reduced capacity utilization had a significant impact, the gross profit margin improved by 0.3 percentage points to 33.8% due to the effect of transaction price revisions pursued since last year and an improved product mix. Selling, general and administrative expenses were reduced by approximately ¥27.5 billion year on year through expense-reduction measures implemented amid the COVID-19 environment and improved operating efficiency. As a result, the business profit margin recovered to 4.4%, down 0.2 percentage points year on year.」

「On the earnings front, business profit declined 54.8% year on year to ¥15,371 million, operating profit declined 64.3% to ¥11,976 million and profit before tax for the quarter declined 75.6% to ¥10,678 million, with each showing a substantial decline.」

「Revenue for the first quarter of the current consolidated cumulative period declined 14.6% year on year to ¥310,458 million. On the earnings front, business loss was ¥2,633 million, compared with business profit of ¥10,469 million in the year-earlier quarter.」

「Business profit increased to ¥58,576 million, up 7.5% year on year.」

「Business profit was ¥51,728 million, up 39.3% year on year.」

「As noted above, business conditions were solid during the first 2 quarters of the current consolidated fiscal year. However, demand is expected to decline from the second half onward due to a decrease in new housing starts in Japan, and we must continue working to transform the business into one less susceptible to changes in the external environment.」

「Business profit increased substantially to 2.5 times the year-earlier level. This was attributable to higher revenue in the domestic business and, in particular, improved production efficiency in the domestic Housing Technology business.」

「Business profit increased substantially to 2.5 times the year-earlier level. This was attributable to the benefit of higher revenue in the domestic business, as well as improved gross profit margins, particularly in the domestic Housing Technology business, and control of selling, general and administrative expenses in Japan and overseas.」

「Although the benefits of higher revenue in the domestic business, continued cost reductions and measures to control selling, general and administrative expenses were effective, business profit declined 83.2% year on year to ¥12,798 million due to provisions for losses on construction costs required to complete properties and bad debt provisions associated with deteriorating performance at Permasteelisa in the overseas business.」

「Against this backdrop, revenue for the first 3 quarters of the current consolidated fiscal year increased slightly by 0.8% year on year to ¥1,381,186 million. On the earnings front, business profit declined 45.8% year on year to ¥37,146 million, operating profit declined 18.9% to ¥38,285 million and profit before tax for the quarter declined 17.2% to ¥36,209 million.」

「Against this backdrop, revenue for the first 2 quarters of the current consolidated fiscal year declined slightly by 0.2% year on year to ¥888,196 million. Business profit declined 66.1% year on year to ¥13,790 million, while operating profit declined 2.5% to ¥14,708 million.」

「Revenue for the first quarter of the current consolidated cumulative period increased slightly by 1.1% year on year to ¥397,135 million. Business profit fell 65.1% year on year to ¥6,560 million, operating profit fell 64.9% to ¥6,555 million and profit before tax for the quarter fell 63.5% to ¥6,555 million, with each showing a substantial decline.」

「On the earnings front, although higher revenue and continued cost reductions increased gross profit, business profit declined 16.1% year on year to ¥75,319 million due to higher raw material prices, increased logistics costs associated with higher sales and a substantial increase in selling, general and administrative expenses resulting from upfront investments, including marketing costs and IT system amortization.」

「Against this backdrop, revenue for the first 3 quarters of the current consolidated fiscal year increased 2.4% year on year to ¥1,250,485 million. Although revenue was affected by the sale of a subsidiary in the previous consolidated fiscal year, proactive marketing activities proved effective and water and housing-related products continued to perform well in Japan and overseas. On the earnings front, although higher revenue and continued cost reductions increased gross profit, business profit declined 10.5% year on year to ¥68,638 million due to higher logistics costs associated with increased sales and a substantial increase in selling, general and administrative expenses resulting from upfront investments, including marketing costs and IT system amortization.」

「Revenue increased 1.7% year on year to ¥809,912 million, despite the impact of the sale of a subsidiary in the previous consolidated fiscal year, as water and housing-related products performed well in both Japan and overseas. On the earnings front, although higher revenue increased gross profit and robust cost-reduction measures continued, business profit declined 4.5% year on year to ¥40,657 million because selling, general and administrative expenses increased due to upfront investments, including marketing and IT costs.」

「During the first quarter of the current consolidated cumulative period, revenue increased 1.2% year on year to ¥431,878 million. Although revenue was affected by the sale of a subsidiary in the previous consolidated fiscal year, water and housing-related products performed well in both Japan and overseas. Business profit increased 27.1% year on year to ¥18,706 million, reflecting higher gross profit resulting from increased revenue and the continued implementation of robust cost-reduction measures, resulting in higher revenue and profit.」

「On the earnings front, business profit increased to ¥88,312 million, up 26.0% year on year, as expanded sales of high-gross-margin products, including the GROHE brand, and cost reductions in Japan and overseas more than offset higher promotional costs, including television advertising.」

「On the earnings front, business profit increased to ¥73,809 million, up 9.3% year on year, as gross profit margin improved through cost reductions and other measures, while selling, general and administrative expenses were reduced despite higher marketing and promotional costs.」

「We have launched a new business model focused on innovation and technology leadership, with the aim of achieving growth supported by stable earnings power.」