LIXIL's International Business Drives Profitability in Q3 FYE2025
Japan: LIXIL Corporation announced its third-quarter results for the fiscal year ending March 31, 2025. Consolidated revenue increased by 1.6% year-on-year to ¥1,140.5 billion ($ 7.36 billion). In Japan, while new housing starts declined, we captured renovation demand for water products and saw steady sales of high insulation products for renovations, resulting in flat revenue year-on-year at ¥756.3 billion ($ 4.86 billion). Revenue from the international business increased by 6% year-on-year to ¥392.1 billion ($ 2.52 billion), and a 1% decline on a local currency basis. Despite continued weak demand in the U.S. and China, we achieved sales improvements in bathroom and shower products in Europe, and increased sales in growth markets such as the Middle East and India. Core earnings increased by 16.7% year-on-year to ¥31.1 billion ($ 0.20 billion). The profitability of our international business improved significantly, driven by sales growth in Europe, the Middle East, and India. Although the Japan business experienced a slight decrease in profit from weak new housing demand and increased selling, general, and administrative expenses (SG&A) from higher IT amortization costs, the improvement in productivity resulting from structural reforms also contributed positively. As a result, the overall core earnings margin improved by 0.4 pp to 2.7%. For the third quarter, LIXIL recorded a net profit of ¥4.3 billion ($ 28 million), a decrease of ¥2.5 billion ($ 16 million) from the same period in the previous year due to increased tax expenses. For the three months of the third quarter, profit improved by ¥1.9 billion ($ 12 million) year-on-year supported by increased core earnings. CEO Kinya Seto noted significant profitability improvements in the water technology business in Japan due to growth in renovation sales and robust sales of high-insulation windows. Internationally, despite sluggish demand in some markets, the company achieved increased revenue and profit by improving market share in Europe and expanding sales in the Middle East and India. Seto emphasized the company's focus on structural reforms and optimizing the business portfolio to improve profitability, aligning with the 'LIXIL Playbook' strategy.
Source: Lixil