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nippon-sanso-holdings-highlights-enhanced-profitability-in-q3-2024-report
nippon-sanso-holdings-highlights-enhanced-profitability-in-q3-2024-report

Nippon Sanso Holdings highlights ‘enhanced profitability’ in Q3 2024 report

Japanese industrial gases group Nippon Sanso Holdings Corporation (NSHD) has reported its financial results for the third quarter (Q3) FYE2024, highlighting enhanced profitability, continued disciplined price management, the seizure of business opportunities in the electronics industry

Q3 saw the company’s revenue stand at $2.1bn, a 5.6% increase year-on-year (YoY) compared with Q3 FYE2023’s figure of $2bn. Revenue for the first three quarters of FYE2024 (1st April, 2023 – 31st December 2023) was reported as $6.3bn, an uptick of 6.4% compared with FYE2023.

Core operating income was reported at $291m, a 37.3% increase compared with Q3 FYE2023’s figure of $211.8m. Core operating income for the first three quarters of FYE2024 was reported as $845m, an increase of 42.5% compared with the first three quarters of FYE2023.

Business performance by segment for quarter three (Q3) FYE2024

Japan revenue was $699m, a 2.6% decrease YoY compared to $718m in Q3 FYE2023. This has been attributed to the lower shipment volumes of core products such as air separation gases, carbon dioxide (CO2) and LP gas and sales price revisions against the backdrop of rising costs.

According to the company, shipment volumes of electronic material gases were soft, while both IG-related and electronics-related equipment and installation remained firm. A decrease in revenue has been associated with a conversion from on-site production facility to a joint operation entity.

As part of the Group’s ‘Strategic Overview’, it aims to improve the profitability of its Japan business by setting a ‘Milestone of Operational Excellence’.

“We focus on maximising the value of our contribution to our customers so that we achieve sustainable profitable growth by promoting ‘Grow further’, ‘Enhance the value contributed to customers,’ and ‘Price management.'”, said the Group in a statement.

The US business revenue was reported at $592m, a 10% change YoY compared with $524m in Q3 FYE2023. This was influenced by flat shipment volumes of core products such as air separation gases, and sales price revisions and productivity initiatives.

In equipment and installation, the revenue declined in IG-related (hard goods: welding and cutting-related items).

Europe revenue was $511.7m, an 8.8% increase YoY compared with $452m in Q3 FYE2023. This has been attributed to an increase in shipment volumes of core products such as air separation gases and sales price revisions along with productivity and cost reduction efforts.

The region also saw strong sales of gas-related equipment and medical-related equipment.

Asia & Oceania revenue was $279m, a 0.3% increase YoY compared with 41.0 $277m in Q3 FYE2023. This small change is due to slightly lower shipment volumes of core products such as air separation gases, sales price revisions against the backdrop of rising costs, low sales volumes in LP gas and ‘soft’ shipment volumes of electronic material gas.

The Thermos business revenue was $52.7m, a 0.4 change YoY compared with $50m in the previous year. Influencing factors included ‘favourable’ revenue from portable vacuum-insulated mugs in Japan and ‘firm’ revenue from Korean sales companies and Asian production plants.

The company reported sales conditions at equity-method affiliates as ‘soft’ and production costs increased mainly due to the weak JPY.

Overview of forecasts for the year

NSHD has issued a full-term forecast for FYE2024 revenue of $8.3bn, a 3.7% increase on the full-term FYE2023 forecast. Core operating income is forecast to increase to $1bn, a 25.9% increase on the full-term FYE2023 forecast.


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