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Presentation materials for financial results8174NIPPON GAS CO.,LTD.Retail

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

First-quarter operating profit exceeded the initial plan by ¥900 million, driven by wider margins and higher sales volumes for LP gas. The full-year operating profit forecast was left unchanged at ¥20 billion, while gross profit plans by segment were revised.

Worth reading
82Important
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
9
¥100 million (amount by which operating profit exceeded the plan)
Wording
Conditional
How definitive the wording is.

Contents of this document

Presentation materials for financial resultsFirst 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)
Operating profit38 Hundreds of millions of yen+5.6%
Net income26 Hundreds of millions of yen0.0%
Selling, general and administrative expenses137 Hundreds of millions of yen
Results for the three months of the current quarter
Gross profit
175 Hundreds of millions of yen
Selling, general and administrative expenses
137 Hundreds of millions of yen
Operating profit
38 Hundreds of millions of yen
Net income
26 Hundreds of millions of yen
EPS
¥24.4
Full-year earnings forecast
Gross profit
755 Hundreds of millions of yen
Selling, general and administrative expenses
555 Hundreds of millions of yen
Operating profit
200 Hundreds of millions of yen
Net income
140 Hundreds of millions of yen
EPS
¥132.3
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。
Selling, general and administrative expenses
25 %
Breakdown of selling, general and administrative expensesPersonnel expenses 23%, depreciation 23%, customer acquisition costs 23%, IT expenses 27%, commissions and other expenses 24%, gas-related equipment and other expenses 34%, gas cylinder transportation costs 26%, repairs 23%, taxes and dues and business taxes 29%, communications expenses 25%, advertising and promotional expenses 25%, travel and transportation expenses 29%, call center 20%, other 24%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Operating profit exceeded plan. SG&A expenses were generally controlled in line with plan.
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Operating profit variance from plan
Gross profit+¥1 billion
Selling, general and administrative expenses+¥100 million
Operating profit+¥900 million
Gross profit variance from plan
PF+¥100 million
Electricity+¥200 million
City gas+¥100 million
LP gas+¥600 million
Operating profit variance between the full-year plan and Q2–Q4
Gross profit-¥1.0 billion (LP gas household -¥400 million, commercial -¥600 million)
Selling, general and administrative expensesDown ¥100 million
OtherDown ¥100 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Average LP gas feedstock CP price
650 US$/t
Average exchange rate
¥160 /US$
Electricity margin
¥3.1 /kWh
Average LNG CIF price
¥131 thousand/t
Average temperature
17.3 ℃
New initiatives
  • The platform business was established as a separate segment from the fiscal year ending March 2027
  • Continue growth investments, including acquisitions of LP gas customer bases
  • Contain SG&A expenses through improved operating efficiency and optimal use of equipment and materials
Key KPIsA metric the company considers important as a management benchmark.
  • LP gas customers1,057 thousand cases
    Year on year against the same period last year+21 thousand accounts
  • City gas customers613 thousand cases
    Year on year against the same period last year+19 thousand accounts
  • Electricity customers409 thousand cases
    Year on year against the same period last year+20 thousand accounts
  • Electricity bundling rate24.5 %
    Year on year against the same period last year+0.6 percentage points
  • Cumulative hybrid water heater sales1.8 thousand units
    Year on year against the same period last year+0.3 thousand units
  • LP gas margin166 Yen/kg
    Year on year against the same period last year+¥13/kg
Unit price and quantity metricsThese figures show sales broken down by price and volume.
LP gas
Household sales volume
41 thousand tonnes
Commercial sales volume
26 thousand tonnes
Margins
166 Yen/kg
Customer Base
1,057 thousand cases
City gas
Household sales volume
32 thousand tonnes
Commercial sales volume
44 thousand tonnes
Customer Base
613 thousand cases
Electricity
Sales volume
292 GWh
Margins
¥1.8 /kWh
Customer Base
409 thousand cases
Segment results
LP gas
Gross profit
119 Hundreds of millions of yen
Year on year against the same period last year+9.0%
City gas
Gross profit
45 Hundreds of millions of yen
Year on year against the same period last year-1.0%
Electricity
Gross profit
5 Hundreds of millions of yen
Year on year against the same period last year-5.0%
Platform
Gross profit
5.8 Hundreds of millions of yen
Year on year against the same period last year+1.7%
Medium-term management plan targets
Fiscal year ending March 2029
Operating profit
250 Hundreds of millions of yen
Net income
175 Hundreds of millions of yen
Gross profit
820 Hundreds of millions of yen
ROEApproximately 22%
ROICApproximately 13%
Financial targets
ROE
TargetApproximately 22%
Actual results22%
ROIC
TargetApproximately 13%
Actual results13%
Equity ratio
TargetApproximately 40%
Actual results41%
Risk amount incorporated into the outlookThe amount representing the range of variation the company expects in its forecast.
City gas pass-through time lag
-11 Hundreds of millions of yen
DetailsImpact of higher energy prices accompanying heightened tensions in the Middle East
Capital expenditures
¥23 100 million investment cash flow for the first quarter of the fiscal year ending March 2027
Annual Dividend
Annual dividend per share
¥110
Acquisition of treasury shares
¥5.9 billion (fiscal year ended March 2024), ¥6.0 billion (fiscal year ended March 2025), ¥6.7 billion (fiscal year ended March 2026)
Contents of this document
ItemDetails
Document typePresentation materials for financial results
Fiscal Period CoveredFirst quarter of the fiscal year ending March 2027
Operating profit38 Hundreds of millions of yen (YoY +5.6%)
Net income26 Hundreds of millions of yen (YoY 0.0%)
Selling, general and administrative expenses137 Hundreds of millions of yen
Results for the three months of the current quarterGross profit 175 Hundreds of millions of yen / Selling, general and administrative expenses 137 Hundreds of millions of yen / Operating profit 38 Hundreds of millions of yen / Net income 26 Hundreds of millions of yen / EPS ¥24.4
Full-year earnings forecastGross profit 755 Hundreds of millions of yen / Selling, general and administrative expenses 555 Hundreds of millions of yen / Operating profit 200 Hundreds of millions of yen / Net income 140 Hundreds of millions of yen / EPS ¥132.3
Progress against full-year forecastSelling, general and administrative expenses 25 % / Breakdown of selling, general and administrative expenses Personnel expenses 23%, depreciation 23%, customer acquisition costs 23%, IT expenses 27%, commissions and other expenses 24%, gas-related equipment and other expenses 34%, gas cylinder transportation costs 26%, repairs 23%, taxes and dues and business taxes 29%, communications expenses 25%, advertising and promotional expenses 25%, travel and transportation expenses 29%, call center 20%, other 24%
Self-assessment against the planOperating profit exceeded plan. SG&A expenses were generally controlled in line with plan.
Segment resultsLP gas Gross profit 119 Hundreds of millions of yen / Year on year against the same period last year 9 Hundreds of millions of yen / City gas Gross profit 45 Hundreds of millions of yen / Year on year against the same period last year -1 Hundreds of millions of yen / Electricity Gross profit 5 Hundreds of millions of yen / Year on year against the same period last year -5 Hundreds of millions of yen / Platform Gross profit 5.8 Hundreds of millions of yen / Year on year against the same period last year 1.7 Hundreds of millions of yen
Breakdown of Factors Affecting the ChangeOperating profit variance from plan Gross profit +¥1 billion / Selling, general and administrative expenses +¥100 million / Operating profit +¥900 million / Gross profit variance from plan PF +¥100 million / Electricity +¥200 million / City gas +¥100 million / LP gas +¥600 million / Operating profit variance between the full-year plan and Q2–Q4 Gross profit -¥1.0 billion (LP gas household -¥400 million, commercial -¥600 million) / Selling, general and administrative expenses Down ¥100 million / Other Down ¥100 million
Key KPIsIndicator name LP gas customers / Value 1,057 thousand cases / Year on year against the same period last year +21 thousand accounts, Indicator name City gas customers / Value 613 thousand cases / Year on year against the same period last year +19 thousand accounts, Indicator name Electricity customers / Value 409 thousand cases / Year on year against the same period last year +20 thousand accounts, Indicator name Electricity bundling rate / Value 24.5 % / Year on year against the same period last year +0.6 percentage points, Indicator name Cumulative hybrid water heater sales / Value 1.8 thousand units / Year on year against the same period last year +0.3 thousand units, Indicator name LP gas margin / Value 166 Yen/kg / Year on year against the same period last year +¥13/kg
Unit price and quantity metricsLP gas Household sales volume 41 thousand tonnes / Commercial sales volume 26 thousand tonnes / Margins 166 Yen/kg / Customer Base 1,057 thousand cases / City gas Household sales volume 32 thousand tonnes / Commercial sales volume 44 thousand tonnes / Customer Base 613 thousand cases / Electricity Sales volume 292 GWh / Margins ¥1.8 /kWh / Customer Base 409 thousand cases
Assumptions Underlying the Business OutlookAverage LP gas feedstock CP price 650 US$/t / Average exchange rate ¥160 /US$ / Electricity margin ¥3.1 /kWh / Average LNG CIF price ¥131 thousand/t / Average temperature 17.3 ℃
Risk amount incorporated into the outlookCity gas pass-through time lag -11 Hundreds of millions of yen
Medium-term management plan targetsSubject Fiscal year ending March 2029 / Operating profit 250 Hundreds of millions of yen / Net income 175 Hundreds of millions of yen / Gross profit 820 Hundreds of millions of yen / ROE Approximately 22% / ROIC Approximately 13%
Financial targetsROE Target Approximately 22% / Actual results 22% / ROIC Target Approximately 13% / Actual results 13% / Equity ratio Target Approximately 40% / Actual results 41%
Annual DividendAnnual dividend per share ¥110 / Interim and Year-End Breakdown Not disclosed
Acquisition of treasury sharesAmount ¥5.9 billion (fiscal year ended March 2024), ¥6.0 billion (fiscal year ended March 2025), ¥6.7 billion (fiscal year ended March 2026) / Number of Shares Not disclosed / Period Not disclosed
Capital expenditures¥23 100 million (investment cash flow for the first quarter of the fiscal year ending March 2027)
New initiativesThe platform business was established as a separate segment from the fiscal year ending March 2027, Continue growth investments, including acquisitions of LP gas customer bases, Contain SG&A expenses through improved operating efficiency and optimal use of equipment and materials
Items this document does not state (10)
Net SalesOrdinary incomeGross Profit MarginOperating profit marginNumber of stores and locationsNumber of employeesPayout ratioOrders received and order backlogMarket Size / ShareKey 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.

For LP gas, household sales volume increased, commercial margins widened, and gross profit from equipment grew. In electricity, margins narrowed and sales volumes declined due to higher fuel prices. In city gas, household sales volumes declined and the negative impact of the pass-through adjustment weighed on results. Higher costs from inflation and advance procurement of equipment and materials were absorbed through measures including improved operating efficiency.

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First-Quarter Financial Results Presentation for the Fiscal Year Ending March 2027 | NIPPON GAS CO.,LTD. (8174) timely disclosure | Komori