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Akebono Brake Industry Co., Ltd. has released its consolidated financial results for the nine months ended December 31, 2024, revealing a decline in net sales but a significant increase in profit attributable to owners of the parent. While sales dropped, the company improved its operating profit and overall profitability, largely driven by cost management and extraordinary income from investment sales. However, ordinary profit turned negative, and comprehensive income recorded a loss.
Key Highlights
- Net Sales: ¥120,838 million, a 3.3% decrease year-on-year.
- Operating Profit: ¥1,702 million, marking a 56.4% increase from the prior period.
- Ordinary Profit: ¥(1,667) million, a sharp drop from ¥1,107 million in 2023.
- Profit Attributable to Owners of Parent: ¥1,953 million, up 921.5% from ¥191 million in the previous year.
- Comprehensive Income: ¥(5,356) million, a reversal from ¥5,416 million last year.
- Total Assets: ¥126,361 million, down from ¥150,475 million in March 2024.
- Net Assets: ¥52,565 million, compared to ¥60,467 million in March 2024.
- Capital Adequacy Ratio: 36.5%, an increase from 34.8%.
Financial Forecast for FY Ending March 31, 2025
- Net Sales: ¥167,600 million, representing a 0.8% increase year-on-year.
- Operating Profit: ¥3,200 million, a 1.5% increase.
- Ordinary Profit: ¥1,000 million, reflecting a 73.5% decline.
- Profit Attributable to Owners of Parent: ¥3,100 million, down 10.2%.
- Earnings Per Share Forecast: ¥19.06.
Additional Notes
- Dividends: No dividends were declared for the first three quarters, with a full-year forecast of ¥0.00 per share.
- One entity, Akebono Europe S.A.S., was removed from consolidation.
- Extraordinary income of ¥9,036 million was recorded, primarily from the sale of investment securities.
- Total liabilities decreased to ¥73,796 million, down from ¥90,008 million in March 2024.
- Cash and Cash Equivalents at the end of the period stood at ¥17,477 million, down from ¥26,949 million in March 2024.
Despite weaker sales performance, Akebono Brake continues to improve its profitability, aided by strategic financial decisions. However, the decline in ordinary profit and comprehensive income losses highlights ongoing challenges in the business environment.
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