US: LIXIL's Strong Japan Renovation Sales Offset by US Market Slump during the first Quarter FY 2024
Japan: LIXIL Corporation announced its first-quarter results for the fiscal year ending March 31, 2024. Revenue increased by 3% year-on-year to 2.53 billion USD, driven by strong performance in Japan's renovation market and a recovery in Europe. However, profits declined due to increased expenses related to structural reforms and tax costs, resulting in a net loss of 40 million USD. Core earnings were ¥0.6 billion, down by 21 million USD year-on-year, impacted by sluggish demand in the U.S. and higher SG&A expenses. Despite these challenges, LIXIL remains optimistic about future growth, driven by continued structural reforms and innovation in their product offerings.
In the Asia Pacific region, overall regional sales remained flat despite continued robust sales in India. The Europe, Middle East, and Africa (EMEA) region experienced a 9% increase in revenue on a local currency basis, driven by a recovery in demand in Europe and sustained strong performance in the Middle East. Conversely, the U.S. market continued to struggle with persistent high interest rates causing sluggish demand, and the Chinese market was impacted by a real estate downturn, resulting in a decrease in revenue on a local currency basis. LIXIL's international business recorded revenues of 87 million USD, a 10.1% increase year-on-year, although this growth was tempered by the challenges in the U.S. and China. Core earnings improved by 13 million USD to 2.1 million USD, owing to the recovery in demand in Europe.
Source: Lixil