Kurabo ＜3106＞ announced consolidated financial results for the fiscal year ending 2024/3 on the 13th. Although sales fell 1.4% from the previous fiscal year to 151,314 billion yen, operating income hit record highs at each consolidated profit stage, with an increase of 5.9% to 9.186 billion yen, ordinary income up 1.7% to 10.191 billion yen, and net income attributable to parent company shareholders up 22.1% to 6.738 billion yen. Furthermore, ordinary profit will be the highest for the third consecutive term.

Sales in the textile business were 51.03 billion yen, down 9.6% from the same period last year, and operating losses were 257 million yen (profit of 308 million yen for the same period last year), partly due to cost increases. As for yarn, the highly functional product “NaTech (Natech),” which utilizes raw material modification technology, was progressing smoothly, but sales declined as the Brazilian subsidiary was affected by deteriorating market conditions, and orders for denim by the Thai subsidiary and for innerwear and socks by the Indonesian subsidiary declined. As for textiles, although price transfer of cost increases due to exchange effects etc. was promoted, orders were sluggish and remained sluggish, but for casual materials, there was also an increase in sales due to additional orders for products with strong over-the-counter sales. Orders for textile products declined due to the effects of customer inventory adjustments, etc., and sales declined.

Sales in the chemical products business increased 2.7% to 61,318 billion yen, and operating profit increased 6.7% to 3.963 billion yen. For automotive interior materials, sales of soft urethane increased as a result of steady acceptance of orders from domestic and Brazilian subsidiaries due to a recovery in automobile production, etc., and price transfer of cost increases due to soaring raw fuel prices also progressed. As for functional resin products, orders for high-performance resin processed products for semiconductor manufacturing equipment, which were affected by the slowdown in semiconductor demand, declined, but orders for functional films for solar cells and automobiles recovered, and sales increased. As for residential building materials, sales of insulation materials remained steady, but heat insulation work declined, leading to a decline in sales. Sales of nonwovens declined due to a decline in orders for masks and automotive filters.

Sales in the environmental mechatronics business increased 5.2% from the same period to 25.530 billion yen, and operating profit increased 26.1% to 3,574 billion yen. As for electronics, substrate inspection equipment remained sluggish, but due to mitigation of shortage of parts supply, film thickness meters, liquid component concentration meters, etc. were going well, and subsidiaries also had large-scale semiconductor cleaning equipment projects, which led to an increase in sales. As for engineering, exhaust gas treatment equipment and chemical solution supply devices for the semiconductor industry progressed smoothly, and subsidiaries also had large-scale projects for equipment for the pharmaceutical manufacturing industry, which led to an increase in sales. In biomedical, overseas sales of mixing and defoaming equipment were strong, and sales increased. Machine tools were excluded from consolidation in the fourth quarter due to the transfer of all shares of Kurashiki Kikai, which manufactured and sold machine tools, etc., and sales declined.

Sales in the food and service business increased 3.0% to 9.572 billion yen, and operating profit increased 38.4% to 641 million yen. As for food, sales declined due to the decline in demand for eating out due to the recovery in demand for eating out and refraining from buying due to retail price increases, and instant noodle ingredients, molded soups, etc. were sluggish. In relation to hotels, lodging showed a strong trend due to the abolition of behavioral restrictions and an increase in guest room occupancy rates and guest room unit prices due to inbound demand, etc., and banquets and restaurants also showed a recovery trend, leading to an increase in sales.

As for real estate leasing, sales increased 1.8% from the same period to 3.79 billion yen due to the start of new leases, but operating profit decreased 4.1% from the same period to 2.332 billion yen due to increases in repair costs, etc.

Regarding the consolidated earnings forecast for the full year ending 2025/3, we expect sales to increase 1.1% from the previous fiscal year to 153.00 billion yen, operating profit up 1.2% to 9.300 billion yen, ordinary profit up 0.1% to 10.200 billion yen, and net income attributable to parent company shareholders to increase 6.8% to 7.200 billion yen.

Also, on the same day, it was announced that the year-end dividend for the fiscal year ending 2024/3 will be 60.00 yen, an increase of 20.00 yen per share from the most recent dividend forecast of 40.00 yen per share, based on performance trends for the current fiscal year. Together with the interim dividend of 40.00 yen that has already been implemented, it will be an annual dividend of 100.00 yen.