Daifuku reports decline in orders but increase in sales and profit, outlines long-term vision, and more

Daifuku, a Japanese manufacturer of logistics systems and material handling equipment, held its full-year results meeting for the fiscal year ending March 2024 on May 10, 2024. 

New orders received declined 15.9% year-on-year (YoY) to 620.3 billion yen, but sales rose 1.6% YoY to 611.4 billion yen, operating income rose 5.5% YoY to 62.0 billion yen, ordinary income rose 7.4% YoY to 64.2 billion yen, and net income attributable to shareholders of the parent company rose 10.2% YoY to 45.4 billion yen. 

Orders were roughly in line with the original plan, although orders for semiconductor and liquid crystal display (LCD) production equipment, which had been ordered ahead of schedule in the previous fiscal year, declined sharply. Profitability improved due to progress in passing on higher costs. Operating income reached a record high, far exceeding the 54.5 billion yen forecast at the beginning of the period. 

The company plans to change its fiscal year-end from March to December, and for the fiscal year ending December 2024, which will be a 9-month accounting period, it forecasts net sales of 550 billion yen, operating income of 52 billion yen, ordinary income of 53.5 billion yen, and net income attributable to shareholders of the parent company of 39 billion yen. 

Along with the financial results, the company also announced its long-term vision “Driving Innovative Impact 2030” and a new mid-term management plan, with the goal of achieving consolidated sales of 1 trillion yen, an operating margin of 12.5%, and a return on equity (ROE) of 13.0% by 2030. 

Hiroshi Geshiro, President and CEO of Daifuku, commented: In addition to supporting social infrastructure such as logistics and production sites, we aim to provide solutions to social issues in new areas such as food and the environment. Both organizational growth and improved profitability will be the cornerstones of our management strategy.