On April 24, Nidek’s Global Group Representative Shigenobu Nagamori (pictured) stated at a financial results briefing that he had “not participated at all” in creating the business plan for the fiscal year ending March 2025, adding, “We have created it quite conservatively. ” Photo taken in July 2018 in Tokyo (2024 Reuters/Kim Kyung-Hoon)
Consolidated operating profit (International Financial Reporting Standards) for the fiscal year ending March 2025, announced on the 23rd, is planned to be 230 billion yen. This was lower than the average forecast of 242.9 billion yen from 18 analysts compiled by IBES. President Mitsuya Kishida said, “Our number one priority is to restore trust.We are sure to accomplish the plans we have put forth,” adding that the company has factored in possible risks.
The company also announced that it is considering a long-term plan up to fiscal 2030 under the new system, and plans to make an announcement when the first quarter is announced.
The company aims to achieve sales of 10 trillion yen in fiscal 2030. This fiscal year’s plan is 2.4 trillion yen. Representative Nagamori said, “50% of the growth will come from organic growth and 50% from M&A.” Up until now, the company had been buying loss-making companies and rebuilding them, but since it takes time, “Even if the price is high, we will buy companies that can immediately improve performance.” Regarding M&A, the company is also increasing its headcount.
President Kishida pointed out that the company has been working on the necessary structural reforms in the past two years in the automotive business, and said, “We are ready to restart in fiscal 2024.” The company changed its strategy in October 2023, and recorded structural reform costs of 59.8 billion yen in the January-March period of 2024, but the company said, “There will be no significant impact on business performance in fiscal 2024.”
As price competition has become more intense in our business in China, we have reconsidered our strategy of chasing sales numbers. However, Nagamori stated that there is a market in China, and clarified that he has no intention of withdrawing from China.
President Kishida also pointed to the “water-cooled module” business, which cools servers, as a new growth area, as large-scale data centers will become necessary due to advances in autonomous driving and other technologies.
Our Code of Conduct: Thomson Reuters “Principles of Trust” New Tab opens new tab
Tags: fiscal years business plan conservative Nagamori Nidek Group Representative Reuters
