Iwatani Corporation TSE:8088
Iwatani : Supplementary Explanation for 1Q FY24 NEW
Source: MarketScreener
Financial Results for 1Q FY2024
(Results for the Fiscal Year Ended June 30th, 2024）
August 9, 2024
Iwatani Corporation
〔Security Code 8088〕
(Forward-Looking Statements)
This material contains forward-looking statements based on expectations and are not guarantees or assurances of future performance. Accordingly, please be fully aware that results may differ materially from those expectations.
Copyright © Iwatani Corporation. All rights reserved.
FY2024 1Q Overview
Copyright © Iwatani Corporation. All rights reserved. | 1 |
Highlights
Net sales decreased. Operating profit decreased. Ordinary profit and profit attributable to owners of parent reached record highs.
Summary of Financial Results for FY2024 1Q
■ The LPG import prices were higher than those in the previous fiscal year, leading to an increase in its selling price. However, due to the sluggish sales of stainless steel and rechargeable battery materials, and the weakening of the helium markets mainly in Asia, revenues decreased.
■ Operating profit declined due to weak sales of products for the industrial sector in the Industrial Gases & Machinery and Material businesses. However, due to factors such as the equity method investment earnings of Cosmo Energy Holdings (hereinafter referred to as Cosmo Energy HD) being recorded as non-operating income and expenses, both ordinary profit and profit attributable to owners of parent have increased.
■ Full-year forecasts : No change
Net sales
Operating profit
Ordinary profit
Profit attributable to owners of parent
197.5
8.4
15.0
11.6
billion yen | YoY | (4.3) billion yen | (2.2)% | |
billion yen | YoY | (0.09) billion yen | (1.1)% | |
billion yen | YoY | +4.4 | billion yen | +41.7% |
billion yen | YoY | +4.4 | billion yen | +61.7% |
■ Operating profit quarterly trends (100 million yen)
173 | 187 | ||||||||
85 | 60 | 84 | |||||||
1Q | 2Q | 3Q | 4Q | 1Q | 2Q | 3Q | 4Q |
FY2023FY2024
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Consolidated Operating Results
(100 million yen)
FY24 1Q | FY23 1Q | YoY | FY24 | ||
results | results | (A)-(B) | Progress | ||
forecasts | |||||
(A) | (B) | (A)/(B) | |||
Net Sales | 1,975 | 2,019 | (43) | 9,020 | 21.9% |
(2.2%) | |||||
Gross profit | 536 | 516 | +20 | - | - |
+3.9% | |||||
Operating profit | 84 | 85 | (0) | 527 | 16.0% |
(1.1%) | |||||
Operating profit | (17) | ||||
excluding impact | 84 | 102 | 527 | 16.1% | |
of LPG import | (17.1%) | ||||
price fluctuation | |||||
Non-operating | 66 | 21 | +45 | - | - |
profit | +214.9% | ||||
Equity gains of | +49 | ||||
affiliated companies | 49 | - | - | - | |
related to Cosmo | - | ||||
Energy HD | |||||
Ordinary profit | 150 | 106 | +44 | 728 | 20.7% |
+41.7% | |||||
Profit attributable | +44 | ||||
to owners of | 116 | 71 | 540 | 21.5% | |
+61.7% | |||||
parent | |||||
■ Net sales
Industrial | |||||
56 | Gases & | ||||
2,019 | Machinery Materials | Others | 1,975 | ||
Integrated | (18) | ||||
(80) | (1) | ||||
Energy | |||||
FY23 1Q | FY24 1Q |
■ Operating profit
Industrial
Gases &
16 Machinery
85 | Materials | 0 | 84 | |
Integrated | (16) | (2) | Others, | |
Energy | ||||
Adjustments | ||||
FY23 1Q | FY24 1Q |
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Consolidated Operating Results (Segment Analysis)
(100 million yen)
FY24 1Q | FY23 1Q | Year on year(C) | Year on year | FY24 | Progress | |
Results(A) | Results(B) | （A）- (B) | （A）/ (B) | Forecast | ||
Net sales | 1,975 | 2,019 | (43) | (2.2)% | 9,020 | 21.9% |
■ Integrated Energy | 825 | 769 | +56 | +7.3% | 3,840 | 21.5% |
■ Industrial Gases & Machinery | 603 | 621 | (18) | (2.9)% | 2,750 | 22.0% |
■ Materials | 473 | 553 | (80) | (14.5)% | 2,105 | 22.5% |
■ Others | 72 | 74 | (1) | (2.4)% | 325 | 22.3% |
Operating profit | 84 | 85 | (0) | (1.1)% | 527 | 16.0% |
■ Integrated Energy | 32 | 16 | +16 | +104.1% | 210 | 15.6% |
■ Industrial Gases & Machinery | 32 | 48 | (16) | (32.9)% | 220 | 14.9% |
■ Materials | 25 | 27 | (2) | (8.7)% | 128 | 19.8% |
■ Others, Adjustments | (6) | (7) | +0 | - | (31) | - |
Operating profit excluding impact of | 84 | 102 | (17) | (17.1)% | 527 | 16.1% |
LPG import price fluctuation | ||||||
Equity gains of affiliated companies | 49 | - | +49 | - | - | - |
related to Cosmo Energy HD | ||||||
Ordinary profit | 150 | 106 | +44 | +41.7% | 728 | 20.7% |
Profit attributable to owners of parent | 116 | 71 | +44 | +61.7% | 540 | 21.5% |
Copyright © Iwatani Corporation. All rights reserved. | 4 |
Operating Profit Analysis of Integrated Energy
Results | (100 million yen) | ||||||||||
FY24 1Q | FY23 1Q | YoY | YoY | FY24 | Progress | ||||||
Results | Results | Forecasts | |||||||||
(A)-(B) | (A)／(B) | (A)/(C) | |||||||||
(A) | (B) | (C) | |||||||||
Net sales | 825 | 769 | +56 | +7.3% | 3,840 | 21.5% | |||||
Operating profit | 32 | 16 | +16 | +104.1% | 210 | 15.5% | |||||
Operating profit | |||||||||||
33 | 33 | +0 | +0.3% | 210 | 15.9% | ||||||
excluding impact of LPG | |||||||||||
import price fluctuation | |||||||||||
Analysis of changes in operating profit | (million yen) | ||||||||||
1,660 | 70 | 240 | 3,267 |
220 | |||
(530) |
1,600
Main factors | (million yen) |
- Impact of LPG import price fluctuation +1,660
(100 million yen) | 1Q | 2Q | 1H | 3Q | 4Q | Full |
year | ||||||
FY24 | (0.7) | - | - | - | - | - |
FY23 | (17.3) | (34.0) | (51.3) | +32.6 | +26.3 | +7.5 |
Changes | +16.6 | - | - | - | - | - |
- Retail (530)
-decrease in profitability of LPG due to rising LPG import prices
- Wholesale +220
-improvement in profitability of LPG
- Industrial +70
-increase in LPG demand for calorific adjustment for city gas
- Others +240
-steady sales of gas-related safety equipment
Copyright © Iwatani Corporation. All rights reserved. | 5 |
Operating Profit Analysis of Industrial Gases & Machinery
Results | (100 million yen) | ||||||||||||
FY24 1Q | FY23 1Q | YoY | YoY | FY24 | Progress | ||||||||
Results | Results | Forecasts | |||||||||||
(A)-(B) | (A)／(B) | (A)/(C) | |||||||||||
(A) | (B) | (C) | |||||||||||
Net sales | 603 | 621 | (18) | (2.9)% | 2,750 | 22.0% | |||||||
Operating profit | 32 | 48 | (16) | (32.9)% | 220 | 14.9% | |||||||
Analysis of changes in operating profit | (million yen) | ||||||||||||
4,899 | 50 | 80 | |||||||||||
(1,350) | 3,286 | ||||||||||||
(390) | |||||||||||||
Main factors | (million yen) | ||
■ Air separation gases +50
-steady sales, mainly for the electronic components industry
■ Hydrogen Business +80
-increase in sales volume of liquid hydrogen for the space development and others
■ Specialty gases (1,350)
-helium market weakened mainly in Asia, resulting in lower profitability
■ Gas-related equipment (390)
-decrease in sales of automobile-related equipment and gas supply facilities
FY23 1Q | Air separation | Hydrogen | Specialty | Gas-related | FY24 1Q |
gases | Business | gases | equipment |
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Operating Profit Analysis of Materials
Results | (100 million yen) | Main factors | (million yen) | |||||||||||||||
FY24 1Q | FY23 1Q | YoY | YoY | FY24 | Progress | |||||||||||||
Results | Results | Forecasts | ||||||||||||||||
(A)-(B) | (A)／(B) | (A)/(C) | ||||||||||||||||
(A) | (B) | (C) | ■ Functional Plastics Products | +80 | ||||||||||||||
Net sales | 473 | 553 | (80) | (14.5)% | 2,105 | 22.5% | -increase in sales of plastic products, mainly for | |||||||||||
air conditioners | ||||||||||||||||||
Operating profit | 25 | 27 | (2) | (8.7)% | 128 | 19.8% | ||||||||||||
■ Resources & Advanced Materials +0 | ||||||||||||||||||
-production and sales at our own mining sites | ||||||||||||||||||
Analysis of changes in operating profit | (million yen) | remained strong in the mineral sands overseas | ||||||||||||||||
business | ||||||||||||||||||
-sluggish sales of catalyst raw materials for the | ||||||||||||||||||
petrochemical industry | ||||||||||||||||||
2,769 | 80 | 0 | ■ Metals (190) | |||||||||||||||
-decrease in stainless steel due to falling market | ||||||||||||||||||
(190) | 2,529 | prices and inventory adjustments at sales | ||||||||||||||||
destinations | ||||||||||||||||||
(130) | ■ Electronic Materials (130) | |||||||||||||||||
-sluggish sales of rechargeable battery materials | ||||||||||||||||||
for next-generation automobiles | ||||||||||||||||||
FY23 1Q | Functional | Resources & | Metals | Electronic | FY24 1Q | |||||||||||||
Plastics | Advanced | |||||||||||||||||
Materials | ||||||||||||||||||
Products | Materials | |||||||||||||||||
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FY2024 Forecasts
Copyright © Iwatani Corporation. All rights reserved. | 8 |
Forecasts for the Year Ending March 31, 2025
(100 million yen) | |||||
FY24 | FY23 | Change | Rate | ||
forecasts | results | ||||
Net sales | 9,020 | 8,478 | +541 | +6.4% |
■ Integrated Energy | 3,840 | 3,571 | +268 | +7.5% |
■ Industrial Gases &Machinery | 2,750 | 2,621 | +128 | +4.9% |
■ Materials | 2,105 | 1,982 | +122 | +6.2% |
■ Others | 325 | 303 | +21 | +7.1% |
Operating profit | 527 | 506 | +20 | +4.1% |
■ Integrated Energy | 210 | 201 | +8 | +4.1% |
■ Industrial Gases &Machinery | 220 | 217 | +2 | +1.4% |
■ Materials | 128 | 123 | +4 | +4.0% |
■ Others, Adjustments | (31) | (35) | +4 | - |
Operating profit excluding impact of | ||||
527 | 498 | +28 | +5.7% | |
LPG import price fluctuation | ||||
Equity gains of affiliated companies | 159 | 93 | +65 | +69.5% |
related to Cosmo Energy HD | ||||
Ordinary profit | 728 | 662 | +65 | +10.0% |
Profit attributable to owners of | 540 | 473 | +66 | +14.0% |
parent | ||||
Change from forecasts: No change
*Announced on May 13th, 2024
Estimated exchange rate
Exchange rate 145 JPY/USD
LPG import price 650 $/ton
(FY23 results)
Exchange rate 143.5 JPY/USD
LPG import price 569 $/ton
Dividend forecast
FY24 130 yen per share
*The dividend for FY24 does not include the impact of accounting for Cosmo Energy HD using the equity method
*A 4-for-1 stock split of shares of common stock will be conducted with an effective date of October 1, 2024, record of as September 30, 2024. The result shown on the table are before the stock split.
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