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Financial results presentation6306NIKKO CO.,LTD.Machinery

First-Quarter Financial Results Presentation Materials for the Fiscal Year Ending March 2027

In Q1 of the fiscal year ending March 2027, revenue increased 42.5% year on year and operating profit was ¥274 million, resulting in higher revenue and operating profit overall. While the BP-related business grew significantly, the AP-related business recorded a wider operating loss. The company also announced a minimum annual dividend and changes to its shareholder benefit program.

Worth reading
73In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Mixed performance
Direction inferred from the company’s description.
Scale
42.5
% (year-on-year change in revenue)
Wording
Conditional
How definitive the wording is.

Contents of this document

Financial results presentationFirst quarter of the fiscal year ending March 202713 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥11,822 million+42.5%
Operating profit¥274 million
Ordinary income¥459 million+575.0%
Net income¥203 million
Operating profit margin2.3 %
Results for the three months of the current quarter
Net Sales
¥11,822 million
Operating profit
¥274 million
Ordinary income
¥459 million
Profit attributable to owners of parent for the quarter
¥203 million
Orders received
¥14,005 million
Full-year earnings forecast
Net Sales
¥55,000 million
Operating profit
¥3,800 million
Ordinary income
¥3,830 million
Profit attributable to owners of the parent
¥2,650 million
Orders received
¥57,900 million
Order backlog
¥36,326 million
Progress against full-year forecast　通期の予想に対して、いまどこまで進んだかの割合です。
Net Sales21.5%
Operating profit7.2%
Ordinary income12.0%
Profit attributable to owners of the parent7.7%
Orders received24.2%
BP-related business: first-half progress rate61.5%
Environmental and conveyance-related business: first-half progress rate61.2%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
The environmental and conveying-related businesses were generally in line with plan. Thailand in the AP-related business achieved orders above plan, while the other businesses were described as proceeding according to or broadly in line with plan.
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Revenue and cost ratio¥686 million
  • Personnel expenses¥-195 million
  • Freight costs¥-117 million
  • Office expenses¥-21 million
  • Depreciation¥-18 million
  • Acquisition-related expenses¥32 million
  • Other¥24 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Specific assumptions for exchange rates, raw material prices, volumes and other factors are Not disclosed. In China, the company expects demand to decline in the second half and road construction profitability to deteriorate due to higher crude oil prices.
New initiatives
  • Begin using sponsored research reports after the earnings announcement
  • Set a minimum annual dividend of ¥42 per share
  • Redesign the shareholder benefit program for holders of 500 shares or more
Key KPIsA metric the company considers important as a management benchmark.
  • Orders received¥14,005 million+34.6%
  • Order backlog¥35,609 million+41.6%
  • AP-related business orders in China
  • AP-related business domestic revenue¥3,851 million+58.1%
  • AP-related business overseas revenue¥279 million-57.1%
Unit price and quantity metricsThese figures show sales broken down by price and volume.
  • Crusher-related mobile plant orders
    Prior-year period5
    Current fiscal year2
  • Crusher-related stationary crusher orders
    Prior-year period5
    Current fiscal year5
  • Crusher-related mobile plant units sold
    Prior-year period4
    Current fiscal year2
  • Crusher-related stationary crusher units sold
    Prior-year period5
    Current fiscal year4
Segment results
  • AP-Related Business
    Net Sales¥4,130 million
    Revenue_yoy_pct33.8
    Operating profit¥-179 million
  • BP-Related Business
    Net Sales¥4,879 million
    Revenue_yoy_pct101.2
    Operating profit¥676 million
    Operating profit_yoy_pct144
  • Environmental and conveying-related business
    Net Sales¥699 million
    Revenue_yoy_pct-11.9
    Operating profit¥208 million
    Operating profit_yoy_pct-1.4
  • Crushing equipment-related business
    Net Sales¥352 million
    Revenue_yoy_pct25.7
    Operating profit¥-23 million
  • Contract manufacturing-related business
    Net Sales¥501 million
    Revenue_yoy_pct-26.1
    Operating profit¥86 million
    Operating profit_yoy_pct-13.1
  • Other Businesses
    Net Sales¥1,259 million
    Revenue_yoy_pct22.5
    Operating profit¥94 million
    Operating profit_yoy_pct88
Medium-term management plan targets
Annual dividend target for the fiscal year ending March 2027¥40 per share
Annual dividend target for the fiscal year ending March 2028¥50 per share
Risk amount incorporated into the outlookThe amount representing the range of variation the company expects in its forecast.
¥-568 million
DetailsConservatively factoring in higher selling, general and administrative expenses for business infrastructure and management systems, as well as the possibility of higher non-operating expenses, including foreign exchange losses and interest expenses.
Market Size / Share
Sales trends for 3 listed road paving companies and the ready-mixed concrete price index are presented. The company's market share is Not disclosed.
Orders received and order backlog
Orders received
¥14,005 million
Order backlog
¥35,609 million
Annual Dividend
Annual dividend amount¥42 per share
Interim¥21 per share
End of period¥21 per share
Payout ratio
61.1 %
Basic PolicyPayout ratio of 60% or higher
Contents of this document
ItemDetails
Document typeFinancial results presentation
Fiscal Period CoveredFirst quarter of the fiscal year ending March 2027
Net Sales¥11,822 million (YoY +42.5%)
Operating profit¥274 million
Ordinary income¥459 million (YoY +575.0%)
Net income¥203 million
Operating profit margin2.3 %
Results for the three months of the current quarterNet Sales ¥11,822 million / Operating profit ¥274 million / Ordinary income ¥459 million / Profit attributable to owners of parent for the quarter ¥203 million / Orders received ¥14,005 million
Full-year earnings forecastNet Sales ¥55,000 million / Operating profit ¥3,800 million / Ordinary income ¥3,830 million / Profit attributable to owners of the parent ¥2,650 million / Orders received ¥57,900 million / Order backlog ¥36,326 million
Progress against full-year forecastNet Sales 21.5% / Operating profit 7.2% / Ordinary income 12.0% / Profit attributable to owners of the parent 7.7% / Orders received 24.2% / BP-related business: first-half progress rate 61.5% / Environmental and conveyance-related business: first-half progress rate 61.2%
Self-assessment against the planThe environmental and conveying-related businesses were generally in line with plan. Thailand in the AP-related business achieved orders above plan, while the other businesses were described as proceeding according to or broadly in line with plan.
Segment resultsSegment AP-Related Business / Net Sales ¥4,130 million / Revenue_yoy_pct 33.8 / Operating profit ¥-179 million / Operating profit_yoy_pct Not disclosed, Segment BP-Related Business / Net Sales ¥4,879 million / Revenue_yoy_pct 101.2 / Operating profit ¥676 million / Operating profit_yoy_pct 144, Segment Environmental and conveying-related business / Net Sales ¥699 million / Revenue_yoy_pct -11.9 / Operating profit ¥208 million / Operating profit_yoy_pct -1.4, Segment Crushing equipment-related business / Net Sales ¥352 million / Revenue_yoy_pct 25.7 / Operating profit ¥-23 million / Operating profit_yoy_pct Not disclosed, Segment Contract manufacturing-related business / Net Sales ¥501 million / Revenue_yoy_pct -26.1 / Operating profit ¥86 million / Operating profit_yoy_pct -13.1, Segment Other Businesses / Net Sales ¥1,259 million / Revenue_yoy_pct 22.5 / Operating profit ¥94 million / Operating profit_yoy_pct 88
Breakdown of Factors Affecting the ChangeItem Revenue and cost ratio / Amount ¥686 million, Item Personnel expenses / Amount ¥-195 million, Item Freight costs / Amount ¥-117 million, Item Office expenses / Amount ¥-21 million, Item Depreciation / Amount ¥-18 million, Item Acquisition-related expenses / Amount ¥32 million, Item Other / Amount ¥24 million
Key KPIsOrders received ¥14,005 million (YoY +34.6%), Order backlog ¥35,609 million (YoY +41.6%), Indicator name AP-related business orders in China / value Not disclosed / yoy_pct 30 30% increase year on year, AP-related business domestic revenue ¥3,851 million (YoY +58.1%), AP-related business overseas revenue ¥279 million (YoY -57.1%)
Unit price and quantity metricsIndicator name Crusher-related mobile plant orders / Prior-year period 5 Units / Current fiscal year 2 Units, Indicator name Crusher-related stationary crusher orders / Prior-year period 5 Units / Current fiscal year 5 Units, Indicator name Crusher-related mobile plant units sold / Prior-year period 4 Units / Current fiscal year 2 Units, Indicator name Crusher-related stationary crusher units sold / Prior-year period 5 Units / Current fiscal year 4 Units
Assumptions Underlying the Business OutlookSpecific assumptions for exchange rates, raw material prices, volumes and other factors are Not disclosed. In China, the company expects demand to decline in the second half and road construction profitability to deteriorate due to higher crude oil prices.
Risk amount incorporated into the outlookAmount ¥-568 million / Details Conservatively factoring in higher selling, general and administrative expenses for business infrastructure and management systems, as well as the possibility of higher non-operating expenses, including foreign exchange losses and interest expenses.
Medium-term management plan targetsAnnual dividend target for the fiscal year ending March 2027 ¥40 per share / Annual dividend target for the fiscal year ending March 2028 ¥50 per share
Annual DividendAnnual dividend amount ¥42 per share / Interim ¥21 per share / End of period ¥21 per share
Payout ratio61.1 %
Orders received and order backlogOrders received ¥14,005 million / Order backlog ¥35,609 million
Market Size / ShareSales trends for 3 listed road paving companies and the ready-mixed concrete price index are presented. The company's market share is Not disclosed.
New initiativesBegin using sponsored research reports after the earnings announcement, Set a minimum annual dividend of ¥42 per share, Redesign the shareholder benefit program for holders of 500 shares or more
Items this document does not state (8)
Gross Profit MarginSelling, general and administrative expensesNumber of stores and locationsNumber of employeesFinancial targetsAcquisition of treasury sharesCapital expendituresKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

In the BP-related business, projects carried over from the previous fiscal year, demand for capital investment and maintenance, and price pass-through contributed to higher revenue and operating profit. In the AP-related business, orders increased for subsidy-related equipment upgrades and expressway projects in China, but the operating loss widened due to projects priced at previous rates, lower overseas revenue and higher operating expenses.

How to read this page

This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.
Weight is not a verdictIt measures how much this changes what the company had already told the market. It is not a view on the shares.
Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.
First-Quarter Financial Results Presentation Materials for the Fiscal Year Ending March 2027 | NIKKO CO.,LTD. (6306) timely disclosure | Komori