■Trends in Elematec's performance ＜2715＞

1. Summary of financial results for the 2nd quarter of the fiscal year ending March 31, 2025

Financial results for the second quarter of the fiscal year ending 2025/3 were sales revenue of 98360 million yen (down 3.7% from the same period last year), profit related to sales activities of 4996 million yen (down 0.8% from the same period), interim profit before income taxes of 4433 million yen (down 4.3% from the same period), and interim profit attributable to owners of parent companies of 3068 million yen (down 7.2% from the same period). Note that by market, sales of Automotive increased, but sales of Digital Electronics and Broad Market declined.

The gross profit margin improved 0.8 points from the same period last year to 13.0%, but this was mainly due to the depreciation of the yen and changes in product structure (a decrease in the ratio for drive recorders with relatively low profit margins). As a result, gross profit increased 2.4% from the same period, but since SG&A expenses increased 4.5% to 7828 million yen, profit related to sales activities decreased 0.8% from the same period. As a breakdown of the increase and decrease in sales and administration costs, labor costs increased by 378 million yen as personnel increased, and packing freight increased by 137 million yen as transportation costs increased. Meanwhile, other expenses decreased by 181 million yen due to a decrease in the return of provisions for debt loss, etc.

Automotive continues to grow due to adoption of new products, etc., but sales of Digital Electronics and Broad Market declined

2. Sales by market

Digital Electronics was 39419 million yen (down 1411 million yen from the same period last year, down 3.5% from the same period last year). According to the main breakdown, display-related items such as LCD, touch panels (TP), and backlights (BL) decreased by 3625 million yen due to production declines by major customers, and black goods decreased by 924 million yen due to poor TV sales by major customers, but demand for electric/electronic components recovered and increased by 2178 million yen.

Automotive remained steady at 22111 million yen (same 1020 million yen increase, same 4.8% increase) due to adoption of new products, etc., but it was slightly lower than the initial forecast for the fiscal year.

Broad Market was 36829 million yen (same 3351 million yen decrease, same 8.3% decrease), but mainly because the spread of drive recorders was sluggish all round, the aftermarket decreased by 4781 million yen, and industrial equipment and power tools decreased by 723 million yen. Meanwhile, medical devices increased by 1110 million yen due to an increase in customers, etc.

3. Status by region

Sales revenue by region (based on financial statements) was 46149 million yen (down 18.4% from the same period last year) in Japan, 26475 million yen (up 20.4% from the same period) in China, 17333 million yen (up 22.4% from the same period) in the rest of Asia, and 8402 million yen (down 11.0% from the same period) in Europe and the US. The domestic slump was mainly due to the effects of the aftermarket.

As for interim profit, Japan was 2558 million yen (down 14.1% from the same period), China was 1498 million yen (up 5.6% from the same period), the rest of Asia was 690 million yen (up 21.2% from the same period), and Europe and the United States were 238 million yen (down 6.6% from the same period).

(Written by FISCO Visiting Analyst Noboru Terashima)