Business Report
Consolidated Financial Statements
for the Third Quarter of FY2024
(Ending March 31, 2025)
February 06,2025
GUNZE LIMITED
TSE Prime (Code:3002)
1
Contents
- Financial Statements for the Third of FY2024
-
Business Summary for the Third Quarter
Ⅲ. Forecast for FY2024
2
Ⅰ. Financial Statements for
the Third Quarter of FY2024 (Ending March 31, 2025)
3
I-1. Consolidated Financial Statements for FY2024 N3Q
Consolidated operating results
FY2024 N3Q | FY2023 N3Q | Y on Y | |||
Bottom | Bottom | Increase | Change | ||
profit margin | profit margin | ||||
(Decrease) | (%) | ||||
Net sales | 102,916 | 101,450 | 1,466 | 1.4 | |
Operating profit | 6,377 | 6,168 | 209 | 3.4 | |
6.2% | 6.1% | ||||
Ordinary profit | 6,508 | 6,085 | 422 | 7.0 | |
6.3% | 6.0% | ||||
Profit attributable to | 4,441 | 3,985 | 456 | 11.4 | |
owners of parent | 4.3% | 3.9% | |||
Consolidated financial position
FY2024 N3Q | End of FY2023 | Increase | |
(Decrease) | |||
Total assets | 168,857 | 161,971 | 6,886 |
Net assets | 118,562 | 118,642 | (80) |
Equity ratio | 70.2% | 73.2% | (3.0%) |
Interest-bearing debt | 16,481 | 9,004 | 7,476 |
BPS (JPY) | 7,223.19 | 7,112.73 | 110.46 |
(Millions of yen)
(Main extraordinary income/losses)
Gain on sales of securities | 1,072 |
Restructuring costs | (1,154) |
4
I-2-(1). FY2024 N3Q Segment Summary
(April 1, 2024 - December 31, 2024)
Net sales increased due to strong performance in the Functional Solutions business, where sales of materials-related products are increasing, and the Medical business, where sales of new products and products for the Chinese market expanded.
Operating profit and ordinary profit increased overall due to factors such as profit expansion in the Functional Solutions and Medical businesses and the structural reform of sports clubs, despite a decrease in profit in the Apparel business due to factors such as increased costs and a decrease in sales volume.
Net profit attributable to owners of the parent increased due to factors such as the recording of gains on sales of investment securities from the sale of shares held for policy reasons, despite the recording of expenses for business structure improvement due to factors such as the discontinuation of electronic components and additional losses from the transfer of subsidiaries.
5
I-2-(2). FY2024 N3Q Segment Summary
(April 1, 2024 - December 31, 2024)
Functional Solutions
Medical
Apparel
Lifestyle
Creations
Highlights of segment performance
Increase in sales and profit
Plastic films were affected by sluggish demand overseas, but domestic sales remained strong.
In addition to a recovery in the market for Engineering plastics for office automation equipment, demand for semiconductor-related products remained strong.
Increase in sales and profit
In Japan, sales of absorbable adhesion barrier sheets and bone fixation devices increased. Medical Laser market is gradually recovering, but faces increasing competition. Overseas, sales to China increased, particularly for bioabsorbable reinforcement felt.
Slight increase in sales and decrease in profit
Apparel sales through EC channels are increasing, but men's innerwear sales are sluggish due to the shift to private label products in mass retail.
In addition to the impact of the weak yen since the beginning of the year, profits declined due to high production costs as a result of reduced production and the impact of higher production costs and higher labor costs.
Decrease in sales and increase in profit
The Real Estate business, sales decreased due to the impact of sales from the underutilized land redevelopment project in the previous period.
The Sports Club business, sales declined due to the closure of underperforming stores, but profitability improved.
6
I-3. FY2024 N3Q Performance by Segment
Consolidated Results | (Millions of yen) | |||||
Net sales | Operating profit | |||||
Bottom: profit margin | ||||||
FY2024 | FY2023 | YoY | FY2024 | FY2023 | YoY | |
N3Q | N3Q | N3Q | N3Q | |||
Functional | 38,604 | 37,348 | 3.4% | 5,179 | 4,506 | 14.9% |
Solutions | 1,255 | 13.4% | 12.1% | 673 | ||
Medical | 9,625 | 8,768 | 9.8% | 1,784 | 1,627 | 9.6% |
857 | 18.5% | 18.6% | 156 | |||
Apparel | 46,549 | 46,444 | 0.2% | 1,320 | 2,017 | (34.5%) |
104 | 2.8% | 4.3% | (696) | |||
Lifestyle | 8,765 | 9,454 | (7.3%) | 634 | 552 | 14.8% |
Creations | (688) | 7.2% | 5.8% | 81 | ||
Total | 102,916 | 101,450 | 1.4% | 6,377 | 6,168 | 3.4% |
1,466 | 6.2% | 6.1% | 209 | |||
7
I-4. Consolidated Financial Statements for FY2024 N3Q by Segment
(Millions of yen)
Lifestyle Creations
9% | Functional Solutions | |||
8,765 | ||||
7% | 37% | |||
Net sales | Operating | |||
profit | ||||
15% | 634 | 38,604 | ||
1,320 | Net sales | |||
58% | ||||
¥102.9billion | ||||
Apparel | ||||
Operating profit | ||||
20% | ¥6.3billion | 5,179 | ||
44% | 1,784 |
45%
46,549 | 9% | |
9,625 | Medical | |
Total includes corporate expenses not included in segment profit. | 8 |
I-5. Net Sales Trend for FY2024 N3Q
(Millions of yen)
Net sales 102,916 YoY +1.4%
Sales Trends and Forecast
Forecast | |||||||||
136,030 | 140,000 | ||||||||
132,885 | |||||||||
124,314 | 33,382 | 1Q | |||||||
31,868 | |||||||||
31,706 | |||||||||
28,291 | |||||||||
33,946 | 2Q | ||||||||
35,481 | |||||||||
33,447 | |||||||||
31,099 | |||||||||
36,493 | 35,586 | 3Q | |||||||
33,359 | 36,296 | ||||||||
31,563 | 32,186 | 31,435 | 4Q | ||||||
FY2021 | FY2022 | FY2023 | FY2024 |
Total net sales in N3Q increased by JPY 1,466 million.
Sales by Business Segment
103,843 | 101,450 | 102,916 | |||
92,750 | |||||
38,239 | Functional | ||||
37,348 | 38,604 | Solutions | |||
33,339 | 37% | ||||
8,187 | 8,768 | 9,625 | Medical | ||
7,869 | 9% | ||||
43,475 | 47,030 | 46,444 | 46,549 | Apparel | |
45% | |||||
10,972 | Lifestyle | ||||
8,489 | 9,454 | 8,765 | Creations | ||
9% | |||||
FY2021 | FY2022 | FY2023 | FY2024 | ||
Total includes corporate expenses not included in segment profit.
Sales growth in Functional Solutions and Medical.
9
I-6. Net Operating profit Trend for FY2024 N3Q
Operating profit 6,377 YoY +3.4%
(Millions of yen)
Operating Profit Trends and Forecast | Operating profit by Business Segment |
Forecast |
9,000
2,083 | 1Q | |||||
6,777 | ||||||
4,880 | 5,812 | 1,515 | 1,483 | 2Q | ||
1,252 | ||||||
1,555 | 1,714 | |||||
2,811 | 3Q | |||||
1,554 | ||||||
1,784 | ||||||
1,980 | 2,937 | |||||
2,108 | 1,024 | 609 | 4Q | |||
-568 | ||||||
FY2021 | FY2022 | FY2023 | FY2024 |
Total operating profit in N3Q increased by JPY 209 million.
Profit Margin:% | 6,168 | 6,377 | ||||
5,448 | 4,787 | |||||
4,506 | Functional | |||||
5,179 | Solutions | |||||
6.1 | 58% | |||||
4,380 | ||||||
6.2 | ||||||
5,138 | ||||||
5.9 | 4.6 | |||||
1,627 | Medical | |||||
1,784 | ||||||
1,554 | 20% | |||||
1,551 | 2,017 | 1,320 | Apparel | |||
1,342 | 15% | |||||
363 | 552 | 634 | Lifestyle | |||
343 | 415 | Creations | ||||
FY2021 | FY2022 | FY2023 | FY2024 | 7% | ||
Total includes corporate expenses not included in segment profit. Apparel was impacted by a deterioration in profit due to currency effects.
10