Thank you for your continued support of Noritsu Koki.
I would like to update you on the Group’s business activities and performance in FY12/2024, the period from January 1 to December 31, 2024.
In FY12/2024 (ended December 31, 2024), revenue, operating EBITDA, operating profit and net profit all rose sharply year on year, supported by growth in the audio equipment/peripherals business, the weaker yen and a gain on the sale of shares in PreMedica Inc.
In the audio equipment/peripherals business, SG&A expenses increased due to marketing spend and investment to reinforce the business base, but earnings were strong, reflecting buoyant sales in Europe and the US, forex effects and other factors, as well as the success of cost reduction measures.
In the parts/materials business, the pen nib category was impacted by stagnant demand, mainly in China and Europe, but earnings increased year on year due to steady growth in parts for transportation equipment in the MIM category.
As a result, consolidated revenue increased 18.3% year on year to ¥106,539 million and net profit surged 58.1% to ¥16,120 million
Our new Medium-Term Management Plan FY30 has three key strategies – (1) strategy for existing businesses, (2) financial strategy, and (3) Group strategy.
Under our strategy for existing businesses, we are targeting CAGR of 10% or more. While each Group business is a leading player in its specific market, ensuring stable supplies of products is a key theme. We will therefore invest to strengthen supply chains. We are also targeting further growth by focusing on M&A in peripheral business fields.
Under our financial strategy, we are aiming for ROE of 10% or higher. We aim to achieve this through investment returns from M&A in new fields and by improving shareholder returns.
Under our Group strategy, we will implement sustainability management and human capital management across the Group. The plan’s targets will be updated annually in the period through FY12/2030.
Going forward, everyone in the Group will continue to work together to achieve the targets in Medium-Term Management Plan FY30 and our vision of “a corporate group that continues to create ‘No.1/Only 1’ businesses.”
I hope we can count on your continued support as the Noritsu Koki Group strives to achieve these goals.
March 2025