Waves

LIXIL Q1 FY2023

Revenue rises, profits decline but showing recovery

Please see below some highlights of today’s announcement of the financial results for the first quarter of fiscal year 2023 (1st April 22-31st March 23) from LIXIL, a manufacturer of pioneering water technologies and housing products whose brand portfolio also includes the GROHE brand. The full press release in English can be found here.

  • Revenue for the first quarter increased 4% year-over-year to ¥360.3 billion (EUR 2.61bn) due to the effect from foreign exchange rates, renovation sales growth in Japan, and progress in the recovery of economic activities in the Asia-Pacific region.

  • Revenue of LIXIL Water Technology’s (LWT) international business, which the GROHE brand is part of, was little changed from the previous year in local currency terms and increased 9.3% on a JPY basis to ¥121.8 billion (EUR 881.1m).

  • Core earnings margin decreased 63% to ¥5.9 billion (EUR 42.68m) due to the impact of increased costs among other factors. Core earnings margin also deteriorated by 9.4pp to 4.8% but has been recovering every month since April due to the start of price optimization reflecting cost increases. The full effect of price optimization measures will be felt starting October of this year. In addition, the positive impact of a recent declining trend in raw material and fuel costs will begin to take effect next year. However, signs of this are already showing in the form of improved profit margins.

  • Revenue in the EMEA region declined 3% on a local currency basis due to logistics challenges. In the region, two distribution centers were established as a part of initiatives to build a more resilient supply chain and to combat increased logistics costs.

Jonas Brennwald, Leader LIXIL EMENA, commented: “While the macroeconomic environment remains volatile, we continue to implement measures in the EMENA region that will create a more resilient supply chain. Demand for the GROHE brand continues to be strong and its differentiated go-to-market strategy will continue to contribute to the success of LIXIL.”

LIXIL revenue & profit Q1

Contact

Sarah Bagherzadegan
Sarah Bagherzadegan

Sarah Bagherzadegan

Leader Brand Communications LIXIL EMENA