TAIYO YUDEN CO., LTD. Consolidated Financial Results
First quarter for the year ending March 31, 2024
Tomomitsu Fukuda
Chief of Management Planning Headquarters
August 3, 2023
©TAIYO YUDEN 2017
Financial Summary
1Q for the Year Ending March 2024
Net sales were ¥72.6 billion, nearly the same level as in the previous quarter.
Sales of products for use in Chinese smartphones increased, but inventory adjustments continued in IT infrastructure/industrial equipment.
Operating loss was ¥0.6 billion, a ¥3.5 billion contraction in loss Q/Q. The effect of capacity utilization contributed to this figure.
Earnings Forecast for the Year Ending March 2024
There are no changes to the earnings forecasts.
The earnings forecasts are for net sales of ¥322.0 billion, up 1% Y/Y, and operating profit of ¥15.0 billion, decreased 53% Y/Y.
©TAIYO YUDEN 2017 | 2 | |
Financial Summary for 1Q FYE March 2024
Net sales were 72.6 billion yen, in line with the previous quarter.
As a result of inventory optimization, there was an increase in Chinese smartphone sales, where inventory adjustments had continued up until the previous quarter.
Meanwhile, inventory adjustments continued for IT infrastructure/industrial equipment.
Operating loss was 0.6 billion yen, a contraction of 3.5 billion yen Q/Q.
In addition to the small decrease in inventories, the increase in sales volume due to the recovery in demand for products for use in communication equipment contributed to the contraction of loss.
Earnings Forecasts for FYE March 2024
There are no changes to the forecasts published at the beginning of the fiscal year.
TAIYO YUDEN will aim for net sales up 1% Y/Y to 322.0 billion yen and operating profit down 53% to 15.0 billion yen.
Consolidated Financial Results (Q/Q)
¥ in million | FYE Mar 31, 2023 | FYE Mar 31, 2024 | Change Q/Q | ||||
4Q | 1Q | ||||||
(01 Jan 2023 -31 Mar 2023) | (01 Apr 2023 -30 Jun 2023) | ||||||
Net sales | 72,458 | 100.0% | 72,612 | 100.0% | 154 | 0.2% | |
Operating profit | (4,100) | (5.7)% | (577) | (0.8)% | 3,522 | ー | |
Ordinary profit | (3,299) | (4.6)% | 1,159 | 1.6% | 4,458 | ー | |
Profit attributable to | (3,636) | (5.0)% | 903 | 1.2% | 4,539 | ー | |
owners of parent | |||||||
Yen/USD | 132.75 yen | 134.93 yen | 2.18 yen | ||||
average exchange rate | depreciated | ||||||
Impact of exchange rate | 0.7 billion yen on net sales, 0.7 billion yen on operating profit | ||||||
fluctuation | *Including the impact of currencies other than US dollars | ||||||
R&D expenses | 3,165 | 3,169 | 4 | 0.1% | |||
Capital investment | 14,385 | 25,968 | 11,582 | 80.5% | |||
Depreciation expenses | 9,489 | 8,850 | (638) | (6.7)% | |||
©TAIYO YUDEN 2017 | 3 | ||||||
The financial results for the first quarter of the fiscal year ending March 2024 recorded net sales of 72.6 billion yen, operating loss of 0.6 billion yen.
Since the yen depreciated to US$1:¥144 level at the end of the quarter, foreign exchange gain of 1.9 billion yen was recorded as non-operating income, resulting in ordinary profit of 1.2 billion yen.
Profit attributable to owners of parent was 0.9 billion yen.
The average exchange rate during the quarter was US$1:¥134 level, a depreciation of ¥2 from the fourth quarter of the previous fiscal year.
The impact from this was an increase of 0.7 billion yen in both net sales and operating profit.
The depreciation of Asian currencies had a slightly bigger impact on operating profit.
R&D expenses were 3.2 billion yen, practically the same Q/Q.
Capital investment was 26.0 billion yen, an increase of 11.6 billion yen Q/Q due to the completion of a new multilayer ceramic capacitor (MLCC) plant in China. Depreciation expenses were 8.9 billion yen, down 0.6 billion yen Q/Q.
Factors behind Operating Profit (Q/Q)
Effect from
capacity utilization
+5.0
Effect from | Currency | |
cost | fluctuations | |
reductions | +0.7 | |
+0.1 | ||
(0.5) | (0.6) | |
(1.8) | Changes | Operating profit |
in | (1Q FYE Mar 2024) | |
Impact of | fixed costs | |
selling price | ||
(4.1) | ||
Operating profit | ||
(4Q FYE Mar 2023) | ||
©TAIYO YUDEN 2017 | 4 | |
The main factor for the contraction of operating loss was the effect from capacity utilization.
The effect from capacity utilization includes the impact of improvement in product mix in addition to changes in sales volume and changes in inventory.
In the first quarter, the increase in sales volume associated with inventory optimization of Chinese smartphones, where inventory adjustments had continued up until the previous fiscal year, and the smaller reduction in TAIYO YUDEN's inventory than in the fourth quarter of the previous fiscal year were factors for increase in profit amounting to 5.0 billion yen.
Company-wide inventory as of June 30, 2023 decreased 1.5 billion yen from March 31, 2023 on the actual basis excluding the portion with no effect on operating profit, such as the impact of exchange rates.
Other factors for increase in operating profit were the 0.7 billion yen effect of exchange rates due to the depreciation of the yen and 0.1 billion yen impact of lower costs.
Although the 1.8 billion yen effect of selling prices and the 0.5 billion yen increase in fixed costs were factors for decrease in profit, operating loss contracted by 3.5 billion yen Q/Q.
Financial Results by Product Classification (Q/Q)
¥ in million | FYE Mar 31, 2023 | FYE Mar 31, 2024 | Change Q/Q | |||
4Q | 1Q | |||||
Capacitors | 47,225 | 65.2% | 47,133 | 64.9% | (91) | (0.2)% |
Inductors | 10,748 | 14.8% | 10,976 | 15.1% | 228 | 2.1% |
Integrated modules & | 7,786 | 10.7% | 8,182 | 11.3% | 396 | 5.1% |
devices | ||||||
Others | 6,697 | 9.2% | 6,320 | 8.7% | (377) | (5.6)% |
Total net sales | 72,458 | 100.0% | 72,612 | 100.0% | 154 | 0.2% |
©TAIYO YUDEN 2017 | 5 | |
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Taiyo Yuden Co. Ltd. published this content on 03 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 August 2023 07:19:28 UTC.
