Summary of Financial Results for the Fiscal Year Ended December 31, 2024
February 17, 2025
© 2025 KOKUYO Co., Ltd.
Contents
- Full-YearFY2024 Results
- Full-YearFY2025 Forecasts
- Groupwide Strategic Management
- Results in Each Business
- Reference Materials
-
The business segments are as follows:
Furniture Businesses: FN
Business Supply Distribution: BS
Stationery Businesses: ST
Interior Retail Businesses: IR - Unless otherwise indicated, monetary figures are rounded down to the nearest million yen.
As such, the sum of the figures in a breakdown may not match the stated total.
Executive Summary
Full-Year FY2024 Results (third medium-term plan in review)
- Net sales and operating income were mostly in line with the downgraded targets (as announced in Q3 results presentation). Year on year, net sales increased and operating income decreased.
- Net income reached the third medium-term target as did ROE (8%), The sale of cross shareholdings was brought forward, which more than offset the impact of impairment loss in Kokuyo Hong Kong (which reflected economic adversities in China).
- The dividend of ¥77 (¥10.5 more than the previous annual dividend and ¥1 more than the target), in line with the 40% payout ratio set out in the third medium-term plan.
Summary of 4th medium-term plan (groupwide strategic management)
- Build sustained growth as follows: Establish a framework that prioritizes cashflow (≈EBITDA), use strategic and disciplined investment in line with the Forest-like Management Model, build up talent and knowledge to increase replicability of business success, and bolster strategic assets to reduce risks (capital costs).
- From the ¥35 billion share buyback budget, buy back ¥20 billion of shares to achieve an early improvement in capital efficiency.
- Work on 4th medium-term plan measures: e.g. relocate Osaka head office, introduce stock incentive plan, allocate growth CapEx to building business supply distribution centers.
Full-Year FY2025 Forecasts
- Net sales and operating income will increase on the back of growth in each business, especially the furniture business.
- EBITDA will increase following investment in PP&E in Japan and other growth investments.
- Net income will decrease relative to the FY2024 high (which was on the back of the sale of cross-held shares and other non-business assets brought forward).
- We plan to pay an annual dividend of ¥91 (¥14 more than the previous annual dividend), consistent with our commitment to a payout ratio of 50% and a steadily increasing dividend. ROE will be around 8%.
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1. Full-Year FY2024 Results
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FY2024 Results: Year on Year Comparisons
Net sales and operating income were mostly in line with downgraded targets. Year on year, net sales increased and operating
income decreased.
Despite the recording of impairment loss, net income reached an all-time high with the sale of cross shareholdings.
The third medium-term plan's ROE target was reached, at 8.5%.
(Millions of yen)
2023 | Revised 2024 | 2024 | YoY change | % YoY change | |
result | target | result | |||
Net sales | 328,753 | 338,000 | 338,227 | +9,474 | +2.9% |
Gross profit | 127,392 | 133,200 | 132,921 | +5,528 | +4.3% |
(ratio) | 38.8% | 39.4% | 39.3% | ||
SG&A expenses | 103,561 | 111,700 | 110,892 | +7,330 | +7.1% |
(ratio) | 31.5% | 33.0% | 32.8% | ||
Operating income | 23,830 | 21,500 | 22,028 | -1,802 | -7.6% |
(ratio) | 7.2% | 6.4% | 6.5% | ||
Ordinary income | 25,989 | 23,500 | 24,410 | -1,579 | -6.1% |
(ratio) | 7.9% | 7.0% | 7.2% | ||
Net income attributable to | 19,069 | 21,400 | 21,787 | +2,717 | +14.3% |
owners of parent | |||||
(ratio) | 5.8% | 6.3% | 6.4% | ||
ROE | 7.8% | >8% | 8.5% | ||
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© 2025 KOKUYO Co., Ltd.
FY2024 Results: Contributors to YoY Change in Net Sales
Japan: Revenue growth led by furniture business, with steady stream of contracts Overseas: Revenue decreased mainly because of economic downturn in China
(Millions of yen) | ||
Japan | Overseas | Reconciliation |
+11,288 | -2,237 | +423 |
2,591
FY2023 | Other | Foreign | Reconciliation | FY2024 | 6 |
result | exchange | result | |||
© 2025 KOKUYO Co., Ltd. |
FY2024 Results: Contributors to YoY Change in Operating Income
Japan: Operating income increased with strong revenue in furniture business, the effects of price revisions in
business supply distribution.
Overseas: Operating income decreased with Chinese downturn.
(Millions of yen) | ||
Japan | Overseas | Reconciliation |
+1,374 | -1,393 | -1,783 |
FY2023 | Other | Foreign Reconciliation | FY2024 | 7 |
result | exchange | result | ||
© 2025 KOKUYO Co., Ltd.
Contributors to YoY Change in Operating Income
Costs increased, but we continued to enjoy the effects of price revisions in the Japanese stationery business and
Business Supply Distribution.
We invested in personnel and made other strategic expenditures to drive our medium- and long-term strategies while
controlling SG&A expenses.
Gross profit | SG&A expenses |
+5,528 | -7,331 |
System functionality
enhancements in FN and
BS, IT infrastructure
building
Hiring more staff Across-
board pay raises
M&A related expenses,
hiring expenses, etc.
Impact of higher | Impact of sales | Activity | IT system | FY2024 | ||||||||||
raw materials | expansion | expenses | expenditures | result | ||||||||||
costs | ||||||||||||||
FY2023 | Impact of sales | Personnel | Capital | Other | 8 | |||||||||
result | price revision | expenses | expenditures | |||||||||||
© 2025 KOKUYO Co., Ltd.
Cash Flow Performance
Cash and cash equivalents increased ¥16.9 billion year on year, with steady business performance generating
higher OCF and with the sale of non-business assets improving ICF.
115.1
Cash and
cash
equivalents
(Billions of yen) | |||||||
12.2 | |||||||
ICF | CFF | ||||||
16.3 | 39.0 | 132.0 |
Other
OCF-15.6
Cash and
cash
equivalents
FY2023 end | FY2024 end | 9 | |
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Balance Sheet Performance
The sale of cross-held shares halved investment securities and increased cash and cash equivalents.
Strong business performance increased equity ratio. This and higher net income meant that ROE reached target, at 8.5%.
FY2023 end | FY2024 end | YoY change | |||
Cash and cash equivalents | 115,161 | 132,080 | +16,919 | ||
Notes and accounts receivable | 68,551 | 75,383 | +6,831 | ||
and contract assets | |||||
Inventory assets | 39,718 | 38,853 | -865 | ||
Other non-current assets | 6,725 | 6,566 | -159 | ||
Property, plant and equipment | 61,542 | 63,241 | +1,699 | ||
Intangible assets | 16,614 | 12,961 | -3,653 | ||
Investment securities | 40,112 | 22,362 | -17,750 | ||
Other fixed assets | 9,985 | 11,509 | +1,524 | ||
Total assets | 358,412 | 362,959 | +4,546 | ||
Notes and accounts payable - | 55,157 | 54,357 | -799 | ||
trade | |||||
Interest-bearing liabilities | 9,238 | 4,177 | -5,060 | ||
Other liabilities | 40,589 | 40,361 | -227 | ||
Total liabilities | 104,985 | 98,896 | -6,088 | ||
Owned capital | 251,841 | 260,552 | +8,711 | ||
Non-controlling interests | 1,585 | 3,509 | +1,924 | ||
Net assets | 253,426 | 264,062 | +10,635 | ||
Equity ratio | 70.3% | 71.8% | +1.5pt | ||
ROE | 7.8% | 8.5% | +0.7pt |
(Millions of yen)
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