DISCLAIMER: This document has been translated from a part of the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.
May 13, 2025
Company name: ＮＩＣＨＩＨＡＣＯＲＰＯＲＡＴＩＯＮ
Listing: Tokyo Stock Exchange / Nagoya Stock Exchange
Securities code: 7943
URL: https://www.nichiha.co.jp
Representative: Narumitsu Yoshioka, President and Representative Director Inquiries: Kazushi Tonoi, Director,Senior Executive Officer Telephone: +81-52-220-5111
Scheduled date of annual general meeting of shareholders: June 26, 2025 Scheduled date to commence dividend payments: June 27, 2025
Scheduled date to file annual securities report: June 24, 2025
Preparation of supplementary material on financial results: Yes
Holding of financial results briefing: Yes (for institutional investors and analysts)
(Yen amounts are rounded down to millions, unless otherwise noted.)
-
Consolidated financial results for the fiscal year ended March 31, 2025 (from April 1, 2024 to March 31, 2025)
-
Consolidated operating results (Percentages indicate year-on-year changes.)
Net sales
Operating profit
Ordinary profit
Profit attributable to owners of parent
Fiscal year ended
Millions of yen
%
Millions of yen
%
Millions of yen
%
Millions of yen
%
March 31, 2025
148,478
4.0
6,951
(31.9)
7,254
(38.8)
2,706
(66.4)
March 31, 2024
142,790
3.4
10,205
(12.8)
11,856
(7.4)
8,066
(10.7)
Note: Comprehensive income For the fiscal year ended March 31, 2025:
¥6,768 million
[(49.4)%]
For the fiscal year ended March 31, 2024:
¥13,375 million
[2.3%]
Basic earnings per share
Diluted earnings per share
Return on equity
Ratio of ordinary profit to total assets
Ratio of operating profit to net sales
Fiscal year ended
Yen
Yen
%
%
%
March 31, 2025
78.49
78.32
2.2
4.1
4.7
March 31, 2024
223.57
223.13
6.6
6.9
7.1
-
Consolidated financial position
Total assets
Net assets
Equity-to-asset ratio
Net assets per share
As of
Millions of yen
Millions of yen
%
Yen
March 31, 2025
177,455
124,157
70.2
3,659.66
March 31, 2024
175,688
126,303
72.0
3,570.27
Reference: Equity
As of March 31, 2025: ¥124,518 million
As of March 31, 2024: ¥126,526 million
- Consolidated cash flows
Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities
Cash and cash equivalents at end of period
Fiscal year ended
Millions of yen
Millions of yen
Millions of yen
Millions of yen
March 31, 2025
10,413
(3,036)
(8,008)
26,481
March 31, 2024
6,919
(6,039)
(7,121)
26,700
-
Consolidated operating results (Percentages indicate year-on-year changes.)
-
Cash dividends
Annual dividends per share
Total cash dividends (Total)
Payout ratio (Consolidated)
Ratio of dividends to net assets (Consolidated)
First quarter-end
Second quarter-end
Third quarter-end
Fiscal year-end
Total
Yen
Yen
Yen
Yen
Yen
Millions of yen
%
%
Fiscal year ended March 31, 2024
-
57.00
-
57.00
114.00
4,080
51.0
3.3
Fiscal year ended March 31, 2025
-
57.00
-
57.00
114.00
3,887
145.2
3.2
Fiscal year ending March 31, 2026 (Forecast)
57.00
57.00
114.00
53.9
- Forecast of consolidated financial results for the fiscal year ending March 31, 2026 (from April 1, 2025 to March 31, 2026)
(Percentages indicate year-on-year changes.)
Net sales | Operating profit | Ordinary profit | Profit attributable to owners of parent | Basic earnings per share | |||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | Yen | |
Six months ending September 30, 2025 | 71,500 | (2.1) | 3,500 | 1.9 | 3,700 | 14.4 | 2,500 | 36.6 | 73.48 |
Fiscal year ending March 31, 2026 | 147,500 | (0.7) | 10,000 | 43.8 | 10,300 | 42.0 | 7,200 | 166.0 | 211.61 |
Significant changes in the scope of consolidation during the period: None
Changes in accounting policies, changes in accounting estimates, and restatement
Changes in accounting policies due to revisions to accounting standards and other regulations: Yes
Changes in accounting policies due to other reasons: None
Changes in accounting estimates: None
Restatement: None
Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2025
37,324,264 shares
As of March 31, 2024
37,324,264 shares
Number of treasury shares at the end of the period
As of March 31, 2025
3,299,644 shares
As of March 31, 2024
1,885,331 shares
Average number of shares outstanding during the period
Fiscal year ended March 31, 2025 | 34,484,213 shares |
Fiscal year ended March 31, 2024 | 36,081,217 shares |
Financial results reports are exempt from audit conducted by certified public accountants or an audit firm.
Proper use of earnings forecasts, and other special matters
(Cautions on forward-looking statements, etc.)
The forward-looking statements, including forecasts of financial results, contained in these materials are based on information currently available to the Company and on certain assumptions deemed to be reasonable. However, the Company makes no guarantee that these forecasts will be achieved. Actual financial results, etc. may differ substantially due to various factors. For the conditions on which earnings forecasts are predicated and other matters related to earnings forecasts, please refer to Appendix P.3 "1. Summary of Operating Results (4) Outlook for the Next Fiscal Year."
Consolidated balance sheet | |||
(Millions of yen) | |||
As of March 31, 2024 | As of March 31, 2025 | ||
Assets | |||
Current assets | |||
Cash and deposits | 26,700 | 26,481 | |
Notes and accounts receivable - trade | 27,376 | 23,444 | |
Electronically recorded monetary claims - operating | 1,810 | 5,349 | |
Merchandise and finished goods | 18,316 | 19,485 | |
Work in process | 3,609 | 3,664 | |
Raw materials and supplies | 6,688 | 6,283 | |
Other | 1,554 | 1,326 | |
Allowance for doubtful accounts | (30) | (31) | |
Total current assets | 86,025 | 86,002 | |
Non-current assets | |||
Property, plant and equipment | |||
Buildings and structures | 49,346 | 51,061 | |
Accumulated depreciation | (34,916) | (36,417) | |
Buildings and structures, net | 14,430 | 14,644 | |
Machinery, equipment and vehicles | 128,022 | 131,124 | |
Accumulated depreciation | (91,908) | (93,079) | |
Machinery, equipment and vehicles, net | 36,114 | 38,045 | |
Tools, furniture and fixtures | 6,515 | 6,616 | |
Accumulated depreciation | (5,945) | (6,121) | |
Tools, furniture and fixtures, net | 570 | 495 | |
Land | 20,393 | 20,403 | |
Leased assets | 517 | 487 | |
Accumulated depreciation | (258) | (242) | |
Leased assets, net | 258 | 244 | |
Construction in progress | 428 | 462 | |
Total property, plant and equipment | 72,196 | 74,295 | |
Intangible assets | |||
Leased assets | 2 | 30 | |
Software | 446 | 275 | |
Other | 186 | 176 | |
Total intangible assets | 634 | 482 | |
Investments and other assets | |||
Investment securities | 11,075 | 10,210 | |
Deferred tax assets | 427 | 361 | |
Retirement benefit asset | 1,733 | 2,594 | |
Other | 3,622 | 3,545 | |
Allowance for doubtful accounts | (28) | (36) | |
Total investments and other assets | 16,831 | 16,674 | |
Total non-current assets | 89,662 | 91,452 | |
Total assets | 175,688 | 177,455 | |
(Millions of yen)
As of March 31, 2024 | As of March 31, 2025 | |||
Liabilities | ||||
Current liabilities | ||||
Notes and accounts payable - trade | 16,057 | 14,871 | ||
Short-term borrowings | 220 | 1,185 | ||
Current portion of long-term borrowings | 3,000 | 3,034 | ||
Lease liabilities | 106 | 107 | ||
Accrued expenses | 5,970 | 6,529 | ||
Income taxes payable | 1,941 | 2,962 | ||
Provision for bonuses | 1,799 | 1,871 | ||
Provision for bonuses for directors (and other officers) | 72 | 47 | ||
Provision for product warranties | 90 | 84 | ||
Other | 3,724 | 4,117 | ||
Total current liabilities | 32,982 | 34,813 | ||
Non-current liabilities | ||||
Long-term borrowings | 11,621 | 11,641 | ||
Lease liabilities | 199 | 215 | ||
Deferred tax liabilities | 1,964 | 3,191 | ||
Provision for retirement benefits for directors (and other officers) | 170 | 137 | ||
Provision for product warranties | 740 | 1,094 | ||
Retirement benefit liability | 1,334 | 1,375 | ||
Other | 371 | 827 | ||
Total non-current liabilities | 16,401 | 18,484 | ||
Total liabilities | 49,384 | 53,297 | ||
Net assets | ||||
Shareholders' equity | ||||
Share capital | 8,136 | 8,136 | ||
Capital surplus | 10,944 | 10,950 | ||
Retained earnings | 99,271 | 98,008 | ||
Treasury shares | (4,775) | (9,733) | ||
Total shareholders' equity | 113,577 | 107,361 | ||
Accumulated other comprehensive income | ||||
Valuation difference on available-for-sale securities | 5,686 | 5,067 | ||
Foreign currency translation adjustment | 6,040 | 10,445 | ||
Remeasurements of defined benefit plans | 1,222 | 1,644 | ||
Total accumulated other comprehensive income | 12,949 | 17,157 | ||
Share acquisition rights | 161 | 169 | ||
Non-controlling interests | (384) | (530) | ||
Total net assets | 126,303 | 124,157 | ||
Total liabilities and net assets | 175,688 | 177,455 |
Consolidated statement of income | (Millions of yen) | ||
Fiscal year ended March 31, 2024 | Fiscal year ended March 31, 2025 | ||
Net sales | 142,790 | 148,478 | |
Cost of sales | 92,050 | 97,626 | |
Gross profit | 50,740 | 50,851 | |
Selling, general and administrative expenses | |||
Freight and packing costs | 18,298 | 20,519 | |
Advertising and promotion expenses | 3,487 | 3,459 | |
Provision of allowance for doubtful accounts | 1 | (16) | |
Salaries and allowances and welfare expenses | 8,828 | 9,708 | |
Provision for bonuses | 856 | 933 | |
Provision for bonuses for directors (and other officers) | 72 | 47 | |
Retirement benefit expenses | 169 | 85 | |
Provision for retirement benefits for directors (and other officers) | 24 | 17 | |
Depreciation | 460 | 465 | |
Experimentation and research expenses | 1,153 | 1,075 | |
Provision for product warranties | (62) | 23 | |
Other | 7,245 | 7,580 | |
Total selling, general and administrative expenses | 40,534 | 43,900 | |
Operating profit | 10,205 | 6,951 | |
Non-operating income | |||
Interest income | 152 | 154 | |
Dividend income | 282 | 319 | |
Rental income from real estate | 88 | 60 | |
Foreign exchange gains | 1,133 | - | |
Other | 229 | 227 | |
Total non-operating income | 1,885 | 762 | |
Non-operating expenses | |||
Interest expenses | 121 | 326 | |
Foreign exchange losses | - | 68 | |
Other | 112 | 65 | |
Total non-operating expenses | 234 | 460 | |
Ordinary profit | 11,856 | 7,254 |
(Millions of yen)
Fiscal year ended March 31, 2024 | Fiscal year ended March 31, 2025 | |||
Extraordinary income | ||||
Gain on sale of non-current assets | 3 | 6 | ||
Gain on sale of investment securities | 46 | 432 | ||
Gain on sale of investment property | - | 305 | ||
Total extraordinary income | 49 | 744 | ||
Extraordinary losses | ||||
Loss on retirement of non-current assets | 37 | 329 | ||
Impairment losses | 379 | - | ||
Loss on retirement of inventories | - | 167 | ||
Extra retirement payments | - | 218 | ||
Provision for product warranties | - | 450 | ||
Total extraordinary losses | 417 | 1,165 | ||
Profit before income taxes | 11,488 | 6,832 | ||
Income taxes - current | 2,863 | 1,558 | ||
Income taxes for prior periods | - | 2,051 | ||
Income taxes - deferred | 515 | 662 | ||
Total income taxes | 3,378 | 4,272 | ||
Profit | 8,109 | 2,560 | ||
Profit attributable to | ||||
Profit attributable to owners of parent | 8,066 | 2,706 | ||
Profit attributable to non-controlling interests | 42 | (145) | ||
Other comprehensive income | ||||
Valuation difference on available-for-sale securities | 2,932 | (619) | ||
Foreign currency translation adjustment | 1,631 | 4,405 | ||
Remeasurements of defined benefit plans, net of tax | 702 | 421 | ||
Total other comprehensive income | 5,266 | 4,207 | ||
Comprehensive income | 13,375 | 6,768 | ||
Comprehensive income attributable to | ||||
Comprehensive income attributable to owners of parent | 13,312 | 6,914 | ||
Comprehensive income attributable to non-controlling interests | 63 | (145) |
(Millions of yen)
Shareholders' equity | |||||
Share capital | Capital surplus | Retained earnings | Treasury shares | Total shareholders' equity | |
Balance at beginning of period | 8,136 | 10,925 | 95,027 | (2,059) | 112,030 |
Dividends of surplus | (3,822) | (3,822) | |||
Change in scope of consolidation | |||||
Profit attributable to owners of parent | 8,066 | 8,066 | |||
Purchase of treasury shares | (2,738) | (2,738) | |||
Disposal of treasury shares | 2 | 22 | 24 | ||
Purchase of shares of consolidated subsidiaries | 16 | 16 | |||
Net changes in items other than shareholders' equity | - | ||||
Total changes during period | - | 19 | 4,243 | (2,716) | 1,546 |
Balance at end of period | 8,136 | 10,944 | 99,271 | (4,775) | 113,577 |
Accumulated other comprehensive income | Share acquisition rights | Non-controlling interests | Total net assets | ||||
Valuation difference on available-for-sale securities | Foreign currency translation adjustment | Remeasurements of defined benefit plans | Total accumulated other comprehensive income | ||||
Balance at beginning of period | 2,754 | 4,429 | 519 | 7,703 | 150 | (264) | 119,619 |
Dividends of surplus | (3,822) | ||||||
Change in scope of consolidation | |||||||
Profit attributable to owners of parent | 8,066 | ||||||
Purchase of treasury shares | (2,738) | ||||||
Disposal of treasury shares | 24 | ||||||
Purchase of shares of consolidated subsidiaries | 16 | ||||||
Net changes in items other than shareholders' equity | 2,932 | 1,610 | 702 | 5,245 | 11 | (119) | 5,137 |
Total changes during period | 2,932 | 1,610 | 702 | 5,245 | 11 | (119) | 6,683 |
Balance at end of period | 5,686 | 6,040 | 1,222 | 12,949 | 161 | (384) | 126,303 |
(Millions of yen)
Shareholders' equity | |||||
Share capital | Capital surplus | Retained earnings | Treasury shares | Total shareholders' equity | |
Balance at beginning of period | 8,136 | 10,944 | 99,271 | (4,775) | 113,577 |
Dividends of surplus | (3,968) | (3,968) | |||
Change in scope of consolidation | (1) | (1) | |||
Profit attributable to owners of parent | 2,706 | 2,706 | |||
Purchase of treasury shares | (5,000) | (5,000) | |||
Disposal of treasury shares | 5 | 41 | 47 | ||
Net changes in items other than shareholders' equity | - | ||||
Total changes during period | - | 5 | (1,262) | (4,958) | (6,215) |
Balance at end of period | 8,136 | 10,950 | 98,008 | (9,733) | 107,361 |
Accumulated other comprehensive income | Share acquisition rights | Non-controlling interests | Total net assets | ||||
Valuation difference on available-for-sale securities | Foreign currency translation adjustment | Remeasurements of defined benefit plans | Total accumulated other comprehensive income | ||||
Balance at beginning of period | 5,686 | 6,040 | 1,222 | 12,949 | 161 | (384) | 126,303 |
Dividends of surplus | (3,968) | ||||||
Change in scope of consolidation | (1) | ||||||
Profit attributable to owners of parent | 2,706 | ||||||
Purchase of treasury shares | (5,000) | ||||||
Disposal of treasury shares | 47 | ||||||
Net changes in items other than shareholders' equity | (619) | 4,405 | 421 | 4,207 | 7 | (145) | 4,069 |
Total changes during period | (619) | 4,405 | 421 | 4,207 | 7 | (145) | (2,145) |
Balance at end of period | 5,067 | 10,445 | 1,644 | 17,157 | 169 | (530) | 124,157 |
(Millions of yen)
Fiscal year ended March 31, 2025Cash flows from operating activities | ||
Profit before income taxes | 11,488 | 6,832 |
Depreciation | 5,347 | 5,446 |
Impairment losses | 379 | - |
Extra retirement payments | - | 218 |
Gain on sale of investment property | - | (305) |
Loss on retirement of non-current assets | 37 | 329 |
Gain on sale of non-current assets | (3) | (6) |
Loss (gain) on sale of investment securities | (46) | (432) |
Increase (decrease) in provision for product warranties | (114) | 340 |
Increase (decrease) in retirement benefit liability | 69 | 41 |
Decrease (increase) in retirement benefit asset | (1,151) | (861) |
Interest and dividend income | (434) | (474) |
Interest expenses | 121 | 326 |
Foreign exchange losses (gains) | (469) | (95) |
Decrease (increase) in trade receivables | (2,029) | 747 |
Decrease (increase) in inventories | (4,746) | 508 |
Increase (decrease) in trade payables | (1,883) | (1,692) |
Other, net | 1,564 | 2,072 |
Subtotal | 8,130 | 12,995 |
Interest and dividends received | 427 | 463 |
Interest paid | (109) | (316) |
Extra retirement payments | - | (166) |
Income taxes paid | (1,851) | (2,566) |
Income taxes refund | 321 | 3 |
Net cash provided by (used in) operating activities | 6,919 | 10,413 |
(Millions of yen)
Fiscal year ended March 31, 2024 | Fiscal year ended March 31, 2025 | |||
Cash flows from investing activities | ||||
Purchase of property, plant and equipment | (5,893) | (4,352) | ||
Proceeds from sale of property, plant and equipment | 3 | 7 | ||
Purchase of intangible assets | (207) | (62) | ||
Purchase of investment securities | (2) | (2) | ||
Proceeds from sale of investment securities | 63 | 499 | ||
Proceeds from sale of investment property | - | 972 | ||
Other, net | (2) | (98) | ||
Net cash provided by (used in) investing activities | (6,039) | (3,036) | ||
Cash flows from financing activities | ||||
Net increase (decrease) in short-term borrowings | (60) | 965 | ||
Proceeds from long-term borrowings | 2,696 | 3,055 | ||
Repayments of long-term borrowings | (2,928) | (3,000) | ||
Repayments of lease liabilities | (97) | (101) | ||
Purchase of treasury shares | (2,738) | (5,000) | ||
Dividends paid | (3,822) | (3,968) | ||
Purchase of shares of subsidiaries not resulting in change in scope of consolidation | (172) | - | ||
Other, net | 2 | 41 | ||
Net cash provided by (used in) financing activities | (7,121) | (8,008) | ||
Effect of exchange rate change on cash and cash equivalents | 201 | 412 | ||
Net increase (decrease) in cash and cash equivalents | (6,040) | (219) | ||
Cash and cash equivalents at beginning of period | 32,740 | 26,700 | ||
Cash and cash equivalents at end of period | 26,700 | 26,481 |
(Notes on segment information, etc.)
Overview of Reporting Segments
The Company's reporting segments are those of the Company's constituent units for which segregated financial information is available and which are subject to periodic review by the Board of Directors to determine the allocation of management resources and evaluate performance.
The Company conducts business activities centered on the exterior materials business, and has adopted a management style in which the Company and its consolidated subsidiaries (hereinafter referred to as "business operating companies") are engaged in a single business as independent management units for each business segmented by industry.
Accordingly, the Group is comprised of industry-specific segments based on the operating companies, with the Exterior Materials Business as the reporting segment. The Exterior Materials segment manufactures and sells ceramic and metal exterior materials, as well as related products and exterior accessories.
Method of calculating the amount of sales, profits or losses, assets, liabilities and other items for each reporting segment
The method of accounting for the reported business segments is generally the same as that described in the "Fundamental Important Matters for the Preparation of Consolidated Financial Statements".
Profit in the reporting segment is a figure based on operating income.
Internal revenues and transfers between segments are based on prevailing market prices.
Information on the amount of sales, profits or losses, assets, liabilities, and other items for each reporting segment. The previous fiscal year (April 1, 2023 to March 31, 2024)
(in millions of yen)
Reportable segments
Others (Note 1)
Total
Adjustment amount (Note 2 and 4)
Amount recorded in consolidated financial statements (Note 3)
Exterior building materials business
Sales
133,153
991
9,637
2,079
142,790
3,070
-(3,070)
142,790
-
Revenues from external customers
Transactions with other segments
Total
134,144
11,716
145,861
(3,070)
142,790
Segment profit (loss)
13,005
68
13,073
(2,868)
10,205
Segment Assets
143,776
7,267
151,043
24,644
175,688
Other items
Depreciation
4,991
93
5,085
262
5,347
Impairment losses
99
279
379
-
379
Increase in property, plant and equipment and intangible assets
4,295
235
4,530
245
4,776
Note: 1. The "Other" category refers to business segments that are not included in the reporting segments and includes the fiberboard business, construction business, FP business, and other businesses.
Adjustments for segment profits or losses of (2,868) million yen include (2,908) million yen in corporate expenses and 39 million yen in adjustments that have not been allocated to each reporting segment. Company-wide expenses are mainly expenses related to the Company's general affairs and other administrative divisions that are not attributable to the reporting segment.
Segment profit or loss is adjusted to operating income in the consolidated financial statements.
Adjustments to segment assets of ¥24,644 million include ¥27,193 million in company-wide assets and other adjustments that have not been allocated to each reporting segment and ¥(2,549) million.
Depreciation and amortization and increases in property, plant and equipment and intangible assets include long-term prepaid expenses and amortization. The current fiscal year (April 1, 2024 to March 31, 2025)
(in millions of yen)
Reportable segments | Others (Note 1) | Total | Adjustment amount (Note 2 and 4) | Amount recorded in consolidated financial statements (Note 3) | |
Exterior building materials business | |||||
Sales | 138,891 1,061 | 9,587 1,974 | 148,478 3,035 | -(3,035) | 148,478 - |
Revenues from external customers Transactions with other segments | |||||
Total | 139,952 | 11,561 | 151,513 | (3,035) | 148,478 |
Segment profit (loss) | 9,685 | 47 | 9,732 | (2,780) | 6,951 |
Segment Assets | 144,734 | 6,482 | 151,216 | 26,238 | 177,455 |
Other items | |||||
Depreciation | 5,095 | 82 | 5,178 | 268 | 5,446 |
Increase in property, plant and equipment and intangible assets | 4,200 | 100 | 4,301 | 113 | 4,414 |
Note: 1. The "Other" category refers to business segments that are not included in the reporting segments and includes the fiberboard business, construction business, FP business, and other businesses.
Adjustments for segment profits or losses of (2,780) million yen include (2,824) million yen in corporate expenses and 44 million yen in adjustments that have not been allocated to each reporting segment. Company-wide expenses are mainly expenses related to the Company's general affairs and other administrative divisions that are not attributable to the reporting segment.
Segment profit or loss is adjusted to operating income in the consolidated financial statements.
Adjustments to segment assets of ¥26,238 million include ¥28,467 million in company-wide assets and other adjustments that have not been allocated to each reporting segment and ¥(2,228) million.
Depreciation and amortization and increases in property, plant and equipment and intangible assets include long-term prepaid expenses and amortization.