■Performance Trends
1. Performance trends for the fiscal year ending March 31, 2024
Mimaki Engineering's financial results for the fiscal year ended 2024/3 were sales of 75,631 million yen (up 7.1% from the previous fiscal year), operating profit of 5,480 million yen (up 29.2% from the same period), ordinary profit of 4,882 million yen (up 28.8% from the same period), and net income attributable to parent company shareholders of 3,707 million yen (up 32.1% from the same period), hitting record highs at each stage below sales and operating profit. Note that the main exchange rates related to financial results were 1 US dollar = 144.62 yen (135.48 yen in the previous fiscal year) and 1 euro = 156.79 yen (140.97 yen in the previous fiscal year).
The global economy continued to be generally uncertain, including heightened geopolitical risks, as high levels of inflation continued and the effects of monetary policies etc. by each country's central banks and governments continued. In North America, the economy remained steady, centered on private consumption, and in Europe, the economy continued to stagnate against the backdrop of the prolonged Russia-Ukraine conflict. In Japan, in addition to the return of private consumption and capital investment due to the COVID-19 pandemic, a recovery in inbound demand and an increase in export demand have been driven by a sustained economic recovery. Under such an environment, the company continued market launch and sales expansion of new products, business development in anticipation of rapid changes in the market environment and customer needs, and infrastructure construction aimed at improving profitability based on priority measures defined in the medium- to long-term growth strategy “Mimaki V10” formulated in 2020/12.
On the product side, in addition to simultaneously selling the entry-model UV printer “UJV100-160Plus,” which has evolved with low power consumption etc. for the SG market, and the revolutionary UV printer “UCJV330 Series,” which is capable of various expressions on various substrates and will lead the SG market in the future, they also obtained a 3M performance guarantee with ink. For the IP market, the “M2COA” series of custom goods/industrial product printing automation package systems combined with arm robots was announced, and sales of the 360-degree printing option “Kebab HS,” a large 2.5 meter x 3.1 meter size machine of the JFX600 flatbed UV printer JFX600 with high speed and high image quality, were added to the lineup, and sales of the 360-degree printing option “Kebab HS,” which increased productivity by up to 3 times and compatible with inclined shapes, began. JFX600-2531 For the TA market, the DTF (Direct to Film) machine “TxF150-75” was introduced, and a next-generation printing pigment transfer system “TRAPIS,” which is easy to operate and reduces wastewater by about 90%, was also announced.
On the sales side, in order to respond to a recovery in demand and future business expansion, the JP Demo Center, which is the largest showroom in Japan, was relocated, new products and technologies were announced at the world's largest textile and apparel market equipment exhibition ITMA held once every 4 years in Milan, Italy, and the decolorization technology “Neochromatographic Process” for printed fabrics was exhibited for the first time in Japan at the Decarbonization Management EXPO, which is a specialized exhibition for realizing decarbonized management. In addition, a sales subsidiary was established in Vietnam, where economic growth is remarkable, the Okinawa Sales Office, which is the 17th sales base in Japan, was opened, and a prefectural (Agata) technical training center with a technical showroom was also opened. In October, the Mimaki Festival, which is a community contribution event, was held for the first time in 5 years.
In terms of sales, although sales of printer units declined for the SG market, where sales expanded due to the cancellation of backorders in the first and second half of the fiscal year, and to the IP market where new products were doing well in the 2023/3 fiscal year, strong sales of the “TxF150-75” introduced to the TA market continued mainly in developed countries, and sales of consumable ink also remained steady. By area, although sales declined slightly compared to the fiscal year ending 2023/3 due to economic stagnation in Europe, Japan continued strong sales, mainly for the IP market and TA market, and sales in China, which had been sluggish due to the effects of the COVID-19 pandemic, recovered drastically in Asia and Oceania. North America also remained steady in response to economic expansion, led by the TA market in particular. As a result, positive effects due to exchange rates were also added throughout the fiscal year, leading to an increase in sales.
On the profit side, although the impact of high-cost components such as semiconductors procured in the fiscal year ending 2023/3 continued over the 3rd quarter, the cost of sales ratio improved due to a decrease in marine transportation costs and sales price reviews associated with rising costs. As for SG&A expenses, labor costs and research and development expenses for new technology/new product development increased as global inflation progressed, and since sales activities were activated in line with economic recovery and economic normalization, the cost of hosting and participation in global exhibitions, events, and mini exhibitions also increased, but the increase in sales ratio of SG&A expenses was suppressed to a minimum. In addition to these, there was also a positive effect of exchange, which led to a significant increase in profit.
(Written by FISCO Visiting Analyst Miyata Hitomitsu)