Here I will report the business results for this company’s 51th consolidated fiscal year(from July 1, 2022 to June 30, 2023).
Due to the change of the accounting period, the 50th consolidated fiscal year is 9 months and 10 days from September 21, 2021 to June 30, 2022. Therefore, the length of this consolidated fiscal year (from July 1, 2022 to June 30, 2023) is different from the previous consolidated fiscal year (from September 21, 2021 to June 30, 2022) to be compared with.
Thus, no comparison with the previous period concerning the business results, etc. is included.
General conditions in the current consolidated fiscal year
During this consolidated fiscal year, economic and social activities in Japan started to move toward normalization as a result of eased COVID-19 restrictions, and the nation’s economy showed gradual and continued recovery. Meanwhile, the prolonged situation of Ukraine has caused further increases in prices of resources, raw materials, and energy, and the global credit crunch has caused rapid fluctuations in currency exchange and inflated prices. Consequently, risk of recession in the global economy is growing and the economy in Japan has been unstable.
In this situation, our MAEDAKOSEN group has announced the corporate message “MAEDAKOSEN is a company that can be creating ‘Mixing’” since its 100th anniversary in 2018. Our strong commitment to achieving sustainable growth embedded in this message. By “mixing” the group’s management resources, we believe that it will serve as the driving force for aggressively promoting our growth strategies of “M&A,” “Overseas Business,” and “Human Resource Development.”
In our M&A strategy, we will create new products and technologies by “mixing” the various technologies and know-how possessed by different fields, rather than capturing only the textile and resin processing technologies that our group has cultivated to date.
In our overseas business, we will expand our production capacity at overseas bases and leverage our domestic and overseas technologies and sales networks through business alliances with foreign companies. In this way, we will aim to expand the market for our group products.
In human resource development, we will build an innovative organizational culture by making all of our group employees workforce, recruiting and developing diverse human resources, and “mixing” the human resources born from those abilities and experiences. In addition, based on the idea that “the health of our employees determines the future of the company,” our group is determined to be deeply involved in the health of all employees and has made a “Health Declaration.” Going forward, we will continue to take various measures to create a healthy and rewarding workplace.
In this way, through manufacturing, our group will put into practice our management philosophy of “We will contribute to the creation of a sustainable, safe and secure, and prosperous society with our unique wisdom and technology,” and strive to become a company that is even more needed by the world.
Net sales in this fiscal year were ¥ 50,204 million. In terms of profits, operating profit was ¥ 8,493 million, ordinary profit was ¥ 8,690 million, and profit attributable to owners of the parent was ¥ 5,258 million.
Business Performance according to Segment
Social Infrastructure Business
In our public works business, while sales of embankment reinforcement materials stagnated, those of landscape materials, riverbank protection materials, ocean civil engineering items, slope greening products remained strong. Increased prices of raw materials were gradually passed on to selling prices and further manufacturing cost savings was successful, which resulted in strong earnings. Regarding non-woven fabric products, due to stagnant sales of spunbond (continuous, long fiber non-woven fabric) for automotive and other industrial materials as well as decreased orders for medical and health materials (e.g., masks), we had a difficult time in terms of both sales and profits.
In MIRAI no Agri CO., LTD. which is our subsidiary dealing with harmful animal control products, horticultural greenhouses, and agricultural supplies, although orders of the greenhouses were stagnant, those of products for harmful animal control and livestock farming increased, contributing to strong sales and profits. In MIRAI TECHNO CO., LTD., another subsidiary dealing with awnings and canvas products, although orders of products for the Japan Ministry of Defense diminished, successful winning of orders for some large-scale projects and expansion of sales of ocean civil engineering items resulted in favorable progress in line with its business plan. Further, in MAEDAKOSEN VIETNAM CO., LTD. which is our overseas subsidiary, expansion of its product range contributed to maintaining favorable sales and profits in line with the plan, against some effect of escalated prices of raw materials.
As a result of the above, net sales were ¥ 30,152 million, and operating profit was ¥ 6,438 million in this business.
Industrial Infrastructure Business
In our Industrial Infrastructure Business, MIRAI KOSEN CO., LTD., which is our subsidiary that manufacturers, processes, and sells wiping cloth products used in precision equipment manufacturing and circular-knit products for apparel and various industrial materials, suffered from stagnant sales in the wiping cloth caused by partial production adjustment in the precision equipment industry as well as cost increases caused by elevated power rates and purchases costs. Consequently, its sales and profits dropped lower than the plan.
BBS Japan Co., Ltd., our subsidiary that manufacturers and sells forged automobile wheels, faced the impact of production cutbacks in Japanese automobile manufacturers, which continued until the end of the first half of the accounting period. However, the mitigation of the impact during the second half and the recovery trend in the supply of OEM products, in combination with the business performance supported by its German subsidiary BBS Motorsport GmbH and the effect of manufacturing cost reductions, BBS Japan resulted favorable sales and profits.
As a result of the above, net sales were ¥ 20,051 million, and operating profit was ¥ 3,098 million in this business.