LIXIL’s revenue is 70.2 billion, Grohe 7.3 billion, American Standard 10.5 billion
In the kitchen and bathroom industry, LIXIL disclosed its report for fiscal year 2024 (April 1, 2023 - March 31, 2024).
During the reporting period, Lixil’s revenue was 1,483.1 billion yen (total RMB 70.18 billion), a year-on-year decrease of 0.9%; core income was 23.162 billion yen (total RMB 1.096 billion), a year-on-year decrease of 10%; operating profit was 16.351 billion yen (total RMB 1.096 billion), a year-on-year decrease of 10%. RMB 774 million), a year-on-year decrease of 34.3%; net profit loss attributable to shareholders of the parent company was 13.908 billion yen (total RMB 658 million).
LIXIL said revenue fell due to weak demand and poor market conditions, particularly in its international business. Profit before tax from continuing operations was 6.664 billion yen, down 66.3% year-on-year due to higher financial expenses due to rising interest rates. Basic earnings per share loss was 48.43 yen.
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Revenue of the Water Technology Division fell to 896.924 billion yen (42.442 billion yuan), a year-on-year decrease of 2.0%. Core income decreased to 22.717 billion yen (1.075 billion yuan), a year-on-year decrease of 51.9%. This was affected by lower sales and an increase in fixed cost burden due to lower production volumes. Among the main categories, although sanitary ware still contributed 106.5 billion yen in main revenue, the same as the previous year; the largest growth came from complete bathroom ware, which increased by 2.9% to 89.9 billion yen. Ceramic tiles and kitchens declined, while bathroom cabinets and suites increased slightly by 0.6%.
The revenue of the Housing Technology Division fell slightly to 596.448 billion yen (28.224 billion yuan), a year-on-year decrease of 0.3%. On the other hand, core profit increased significantly to 35.887 billion yen, a year-on-year increase of 85.4%. This was driven by sales growth and price optimization of refurbished products, which ensured appropriate gross margins and thus steadily improved profitability. In addition, continued increases in component costs and energy prices have been overcome through productivity-enhancing measures such as asset-light production.
During the reporting period, American Standard's revenue was US$1.283 billion (RMB 7.289 billion), a year-on-year decrease of 5%; core income loss was US$24 million. Grohe's revenue was 1.457 billion euros (10.549 billion yuan), down 18% year-on-year. Core income was US$23 million, down 88% year-on-year.
For the international market, LIXIL will focus on faucets (especially sales expansion in the United States) and flushing systems (Middle East), stabilizing the business portfolio and expanding market demand by approaching potential markets and capturing demand. For example, this year Lixil Grohe opened a joint venture water tank factory in Riyadh, Saudi Arabia.
During the reporting period, revenue in China was 42.9 billion yen, down 2% year-on-year. Lixil predicts a 1% growth in the next fiscal year. Revenue in the Asia-Pacific region was 51.8 billion yen, down 4% year-on-year. During the reporting period, India grew strongly, sales in Thailand were flat, and sales in Vietnam were challenged by weak demand. Therefore, Lixil is given a 10% growth rate for the next year.
In the past two years, LIXIL has been promoting structural reforms and released the LIXIL Playbook, specifically proposing the urgency of restoring international business profitability at the strategic level. LIXIL proposed to reform the management structure, promote sustainable growth, and cultivate an entrepreneurial culture. The goal is
- Increase ROIC to 10% or above
- Improved core profit margin, targeting 7.5%. Mid- to long-term target increased to 10%
- Maintain net debt/EBITDA at or below 3.5x to provide a stable foundation for mid- to long-term growth
- It is necessary to achieve sustainable growth of the enterprise and to have a positive impact on society
Reform measures include optimizing staffing in Europe and the United States; further reviewing the business portfolio, such as streamlining loss-making entities and restructuring supply chains.
These initiatives are expected to further improve profitability from the financial year ending March 2025. Revenue in fiscal 2025 is expected to be 1.57 trillion yen (74.292 billion yuan), with core income of 35 billion yen.
Please note that the above information is inferred based on the technical characteristics of general water-saving shower products. The specific water-saving technology application of Rising Bath shower products needs to be determined based on official information or product descriptions.
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