Financial Results for the 2nd Quarter of Fiscal Year Ending March 31, 2025
NS TOOL CO., LTD.
October 31, 2024
(Securities Code: 6157)
Contents
1. Consolidated Financial Results for 2Q FY3/25
Ｐ. 3 | ・・・ | Financial Results Summary for 1H FY3/25 |
Ｐ. 4 | ・・・ | Factors for Increase in Operating Profit |
Ｐ. 5 | ・・・ | Summary of Statement of Income |
Ｐ. 6 | ・・・ | Summary of Balance Sheet |
Ｐ. 7 | ・・・ | Business Performance |
2. Consolidated Financial Forecasts for FY3/25
Ｐ. 14 ・・・ Financial Forecasts Ｐ. 15 ・・・ Dividend Forecasts
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Consolidated Financial Results for 2Q FY3/25
Financial Results Summary for 1H FY3/25
Increased in net sales and profits year on year Roughly in line with 1H forecasts
（Unit: million) | 1H FY3/24 | 1H FY3/25 | Full-year | Progress |
Actual | Actual | Forecasts | Rate | |
Net Sales | 4,416 | 4,654 | 9,430 |
-7.4% | +5.4% | 49.4% | |
YoY changes | +4.3% | ||
Operating profit | 751 | 812 | 1,730 |
-21.7% | +8.1% | 47.0% | |
YoY changes | -7.4% | ||
Ordinary profit | 769 | 814 | 1,740 |
-19.5% | +5.9% | 46.8% | |
YoY changes | -8.8% | ||
Profit attributable to | 507 | 568 | 1,190 |
owners of parent | |||
47.8% | |||
-18.2% | +12.0% | ||
YoY changes | -9.9% |
- In the domestic sales, the automotive industry did not achieve a full-fledged recovery due to the impact of the certification fraud issue at major automotive manufacturers. In the market of semiconductor and electronic components and devices, AI-related demand increased, but on the other hand, inventory adjustments continued as a whole. In Greater China, some parts of the automobile and electronic components markets were brisk.
- Consolidated net sales were ¥4,654 million, up 5.4% YoY.
- Consolidated ordinary profit was ¥814 million, up 5.9% YoY. Ordinary profit margin was 17.5%, up 0.1 pp YoY.
- Progress ratios for both net sales and profits were slightly lower than the forecasts, but the financial forecasts remain unchanged due to the expected recovery of market conditions in 2H.
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Factors for Increase in Operating Profit
Domestic net sales increased by ¥3 million, up 0.1% YoY, while overseas net sales increased by ¥234 million, up 18.3% YoY. Overall net sales increased by ¥237 million, up 5.4% YoY.
Cost of sales increased by ¥102 million, up 4.9% YoY.
In SG&A expenses, due to the cost of revising product catalogues, selling expenses increased by 7.8% YoY, and overall SG&A expenses increased by ¥74 million, up 4.8% YoY.
As a result, operating profit increased by ¥60 million, up 8.1% YoY, to ¥812 million, while operating profit margin increased by 0.5 pp to 17.5%.
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Summary of Statement of Income
Unit: | million) | 1H FY3/24 | 1H FY3/25 | YoY | |
（ | Actual | Actual | Changes | ||
Net Sales | 4,416 | 4,654 | +5.4% | ||
Gross profit | 2,311 | 2,447 | +5.9% | ||
Ratio to net sales | 52.3% | 52.6% | |||
SG&A expenses | 1,559 | 1,634 | +4.8% | ||
Ratio to net sales | 35.3% | 35.1% | |||
Operating profit | 751 | 812 | +8.1% | ||
Ratio to net sales | 17.0% | 17.5% | |||
Ordinary profit | 769 | 814 | +5.9% | ||
Ratio to net sales | 17.4% | 17.5% | |||
Profit attributable to | 507 | 568 | |||
owners of parent | +12.0% | ||||
Ratio to net sales | 11.5% | 12.2% | |||
Capital investment | 337 | 67 | -80.0% | ||
Depreciation | 303 | 306 | +1.0% | ||
No. of employees | 350 | 361 | +3.1% | ||
(persons) | |||||
- Net sales were ¥4,654 million, up 5.4% YoY. Recovery of domestic sales has been delayed, but sales to Greater China were brisk.
- Gross profit was ¥2,447 million, up 5.9% YoY. Gross profit margin was 52.6%, up 0.3 pp YoY.
- SG&A expenses increased by 4.8% YoY due to an increase in selling expenses, but SG&A expenses ratio was 35.1%, down 0.2 pp YoY.
- As a result, operating profit increased by 8.1% YoY to ¥812 million and operating profit margin was 17.5%, up 0.5 pp YoY.
- Capital expenditures decreased by 80.0% YoY to ¥67 million due to fewer new equipment installation in 1H. Depreciation increased by 1.0% YoY due to the startup of facilities carried over from the previous fiscal year.
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Summary of Balance Sheet
（Unit: million) | FY3/24-End | Composition | 1H FY3/25- | Composition | VS FY3/24- |
Ratio | End | Ratio | End | ||
(Assets) | |||||
Ⅰ Current assets | 12,719 | 66.1% | 13,218 | 67.9% | +3.9% |
Cash and deposits | 8,893 | 46.2% | 9,598 | 49.3% | +7.9% |
Notes and accounts receivable | 1,305 | 6.8% | 1,316 | 6.8% | +0.8% |
- trade | |||||
Inventories | 2,381 | 12.4% | 2,152 | 11.1% | -9.6% |
ⅡNon-current assets | 6,521 | 33.9% | 6,251 | 32.1% | -4.1% |
Property, plant and equipment | 5,361 | 27.9% | 5,111 | 26.3% | -4.7% |
Intangible assets | 24 | 0.1% | 22 | 0.1% | -11.4% |
Investments and other assets | 1,135 | 5.9% | 1,118 | 5.7% | -1.5% |
Total assets | 19,241 | 100.0% | 19,470 | 100.0% | +1.2% |
(Liabilities) | |||||
Ⅰ Current liabilities | 1,287 | 6.7% | 1,157 | 5.9% | -10.1% |
Accounts payable - trade | 173 | 0.9% | 214 | 1.1% | +24.1% |
ⅡNon-current liabilities | 224 | 1.2% | 224 | 1.2% | － |
Total liabilities | 1,512 | 7.9% | 1,382 | 7.1% | -8.6% |
(Net assets） | |||||
Total equity | 17,525 | 91.1% | 17,893 | 91.9% | +2.1% |
Total net assets | 17,729 | 92.1% | 18,087 | 92.9% | +2.0% |
Total liabilities and net assets | 19,241 | 100.0% | 19,470 | 100.0% | +1.2% |
Current assets
Increased by 3.9% from the end of previous fiscal year due to an increase in cash and deposits resulting from a decrease in new capital expenditures.
Non-current assets
Decreased by 4.1% from the end of previous fiscal year, due to depreciation exceeding new capital expenditures.
Liabilities
Decreased by 8.6% from the end of previous fiscal year due to decreases in provision for bonuses and provision for bonuses for directors (and other officers).
Net assets
Increased by 2.0% from the end of previous fiscal year mainly due to an increase in retained earnings. Partly due to a decrease in liabilities, equity-to-asset ratio was 91.9%, up 0.8 pp from the end of previous fiscal year.
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Business Performance (Trend of net sales (1) By product)
Trend of net sales by product and ratio of small-diameter end mills
- In Japan, the automotive industry did not achieve a full- fledged recovery, although the impact of the certification fraud issue at major automotive manufacturers has dissipated. In the market of semiconductor and electronic components and devices, AI-related demand increased, but on the other hand, inventory adjustments continued. As for overseas, net sales to Greater China were brisk due to the acquisition of orders from some parts of the automobile and electronic components markets. Net sales were ¥4,654 million, up 5.4% YoY.
- By product, net sales for mainstay end mills (diameter 6 mm or less) increased by 6.9% YoY, end mills (diameter over 6 mm) increased by 4.4% YoY, end mills (other), mainly special tools custom-made to users, decreased by 3.4% YoY, and other products such as tool cases also decreased by 2.7% YoY. The ratio of small- diameter end mills was 79.6%, up 1.1 pp YoY.
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Business Performance (Trend of net sales (2) Domestic and overseas)
Trend of domestic and overseas net sales
Domestic net sales increased by ¥3 million, up 0.1% YoY, to ¥3,138 million. Overseas net sales increased by ¥234 million, up 18.3% YoY, to ¥1,515 million.
Overseas net sales increased in Greater China, where net sales were down sharply in the same period of previous fiscal year. In account consolidation of NS TOOL Hong Kong Ltd. into 1H results, figures for China are for January-June.
Overseas net sales ratio increased by 3.6 pp YoY to 32.6%, thanks to an increase in overseas net sales.
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Business Performance (Trend of net sales (3) By overseas region)
Trend of net sales by overseas region | Combined net sales for China, Hong Kong and Taiwan |
increased by 25.7% YoY, to ¥684 million. In account | |
consolidation of NS TOOL Hong Kong Ltd. into 1H results, | |
figures for China are for January-June. Recovery in orders for | |
the smartphone industry continued. In addition, net sales | |
increased due to increased demand for the automotive | |
industry. Although the market condition has not improved | |
significantly, net sales improved from the same period of | |
previous fiscal year due to the acquisition of orders. | |
Other Asia increased by 9.0% YoY to ¥395 million. In | |
Southeast Asia, demand for molds for automobiles remained | |
sluggish. India is performing well due to brisk capital | |
expenditures by the expansion of domestic demand. | |
In Europe, the automotive industry remained sluggish, but net | |
sales increased by 4.0% YoY, to ¥315 million, as sales to the | |
medical-related industry increased slightly. | |
Figures for the U.S. and Mexico are for January-June due to | |
the consolidation of NS TOOL USA, INC. The reasons for the | |
increase in net sales are the deviation in consolidation | |
periods resulted from the change of commercial distribution | |
as well as the impact of exchange rates, so there is only a | |
slight increase when comparing actual net sales. |
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