TAMRON CO.,LTD. 1st Quarter FY2024 Financial Results
April 26, 2024
Tamron Co., Ltd. (Code: 7740)
Contents
- 1st Quarter FY2024 Financial Results
- 1st Quarter FY2024 Summary
- 1st Quarter FY2024 Financial Results
- Factors Affecting Operating Income Variability
- 1st Quarter FY2024 Results by Segment
- Photographic Products
- Surveillance & FA Lenses
- Mobility & Healthcare Products, Others
- 1st Half Revised Financial Forecast & Full-Year Financial Forecast FY 2024
- Financial Forecast FY2024 (1st Half & Full Year)
- Financial Forecast FY2024 (1st Half & Full Year) by Segment
- Photographic Products
- Surveillance & FA Lenses
- Mobility & Healthcare Products, Others
- Reference Data
- Financial Summary
- Capital Investment, Depreciation, and R&D Expenses
- Cash Flow
- Cash Dividends Outlook and Key Performance Indicators
- Impact of Foreign Exchange Rate Fluctuations
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- 1st Quarter FY2024 Financial Results
Ⅰ -１. 1st Quarter FY2024 Summary
Environment
Economy | Market |
- Moderate economic recovery despite some stagnation in overseas economies
- Uncertainty continues due to geopolitical risks such as the prolonged situation in Russia and the tense situation in the Middle East, as well as the sluggish real estate market in China.
- Significant depreciation of JPY (compared to the previous year, USD depreciated by ¥16 and EUR depreciated by ¥19)
- Higher material costs due to higher raw material costs and soaring energy prices
- In the interchangeable lens camera market, although DSLR cameras were weak, mirrorless cameras performed well, resulting in an overall double-digit increase on a volume and value basis.
- Interchangeable lenses market showed double-digit growth on both volume and value basis, reflecting the strong performance of the camera market.
- In the surveillance sector, efforts to optimize inventory levels at camera manufacturers continued due to easing of semiconductor shortages.
Company's Results
- Net Sales increased significantly by approximately 1.4 times YoY: Achieved Net Sales of more than 4th quarter, the sales season
The overall Net Sales increase attribute to significant Net Sales increase in mainstay Photographic Products Segment and Mobility & Healthcare Products, Others Segment led by Automotive lens business, in addition to favorable impact of weaker yen.
- The increase in SG&A expenses due to the strengthening of advertising and sales promotions, the strengthening of R＆D, and the rise in personnel expenses were absorbed by the increase in gross profit due to the increase in sales.
- Operating Income increased significantly by approximately 1.7 times YoY : Significant record-high profits for the 1st quarter
Topics
- From Feb. to Mar.: Repurchase treasury shares of ¥2 billion to enhance shareholder returns, improve capital efficiency, and implement flexible capital policies
- Apr. :Announced development of our 1st Canon RF lens, which will be launched within 2024
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Ⅰ -２. 1st Quarter FY2024 Financial Results
- Sales of mainstay Photographic Products Segment increased by approximately 1.5 times, and sales of Mobility & Healthcare Products, Others Segment led by Automotive Lenses, increased by approximately 1.7 times, driving overall Net Sales
- Maintain gross profit margin at the same level as the previous year due to curtailment of materials costs, cost reductions, etc.
- Gross profit increased due to a large increase in Net Sales, and SG&A expenses were kept to 10% of the increase, which was much lower than the rate of increase in Net Sales. Operating Income on Net Sales improved by about 5pt, to 20% or more.
（Millions of JPY） | 1Q FY23 |
Net Sales | 14,521 |
Gross Profit | 6,562 |
(% Sales) | 45.2% |
Operating Income | 2,630 |
(% Sales) | 18.1% |
Ordinary Income | 2,589 |
(% Sales) | 17.8% |
Net Income | 2,347 |
(% Sales) | 16.2% |
USD/JPY | 132.44 |
EUR/JPY | 142.23 |
VS. 1Q FY23 | ||
1Q FY24 | Inc./Dec. | % |
19,819 | 5,297 | 36.5% |
8,882 | 2,319 | 35.4% |
44.8% | (0.4)% | - |
4,547 | 1,917 | 72.9% |
22.9% | 4.8% | - |
4,598 | 2,008 | 77.6% |
23.2% | 5.4% | - |
3,344 | 996 | 42.5% |
16.9% | 0.7% | - |
148.63 | 16.19 | - |
161.38 | 19.15 | - |
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Ⅰ -３. Factors Affecting Operating Income Variability
Both of Net sales and Operating Income increased in double digit even without favorable foreign exchange effects
(Net Sales increased by approximately 1.4 times and Operating Income Increased by approximately 1.7 times YoY)
（Millions of JPY） | 1st Quarter FY2024 |
Impact of exchange rate on Net Sales: | 4,547 | ||
+1,530 million JPY | (23) | ||
2,630 | 1,700 | ||
(70) | (180) | 490 | ||||
Actual | R&D | SG&A Expenses | FX rate | Gross Profit | Others | Actual |
1Q FY23 | Expenses | (Expt. R&D) | Impact | from sales | 1Q FY24 |
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Ⅰ -４. 1st Quarter FY2024 Results by Segment
① Photographic Products
- Sales of Own-Brandproducts increased by double digits, even excluding favorable foreign exchange effects, due to the impact of the launch of a new models last year and continued strong performance in the domestic and Chinese markets.
- Sales of OEM products more than doubled due to strong performance from the second half of the previous fiscal year.
- Operating Income increased significantly by approximately 1.5 times due to higher profit margin.
（Millions of JPY） | 1Q FY23 |
Net Sales | 9,615 |
Operating Income | 2,666 |
(% Sales) | 27.7％ |
VS. 1Q FY23 | VS. 1Q FY23 | ||
1Q FY24 | Inc./Dec. | % | FX Impact |
13,944 | 4,328 | 45.0% | 980 |
4,019 | 1,353 | 50.8% | 230 |
28.8％ | 1.1% | - | - |
（Billions of JPY）
Sales Breakdown
VS. 1Q FY23 | |||||||||||
（Billions of JPY） | 1Q FY23 | 1Q FY24 | Inc./Dec. | % | OEM | ¥2.8 | |||||
Own-Brand | 6.8 | 7.9 | 1.1 | 16.6% | ¥6.0 | ||||||
OEM | 2.8 | 6.0 | 3.2 | 114.6% | Net Sales | Own-Brand | |||||
¥7.9 | |||||||||||
Market environment VS.2022 | quantify | money | ¥6.8 | ||||||||
SLR cameras | (10)％ | (4)％ | |||||||||
Mirrorless cameras | 28％ | 33％ | Inner circle: 1Q FY23 | ||||||||
Interchangeable lens | 19％ | 29％ | Outer circle: 1Q FY24 | ||||||||
cameras Total | |||||||||||
Interchangeable lenses | 13％ | 23％ | |||||||||
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②Surveillance & FA Lenses
- Sales of Surveillance lenses decreased due to continued efforts to optimize inventory levels at camera manufacturers.
- Sales of FA lenses continually increased driven by the expansion of the lineup.
- Sales of Camera Module increased due to significant contribution of new models launched in last year, and sales of TV conference lenses increased with the elimination of inventory adjustments at customers.
- Despite lower sales, Operating Income significantly increased by approximately 1.5 times due to product mix improvement and cost control, etc.
（Millions of JPY） | 1Q FY23 |
Net Sales | 3,215 |
Operating Income | 288 |
(% Sales) | 9.0％ |
VS. 1Q FY23
1Q FY24 | Inc./Dec. | % |
2,939 | (276) | (8.6)% |
428 | 139 | 48.4％ |
14.6％ | 5.6% | - |
VS. 1Q FY23
FX Impact
300
170
-
Sales Breakdown
VS. 1Q FY23 | |||||||
（Billions of JPY） | 1Q FY23 | 1Q FY24 | Inc./Dec. | % | Camera modules | ||
Surveillance lenses | |||||||
2.0 | 1.3 | (0.7) | (37.0)% | ¥0.4 | |||
FA lenses, etc. | 0.4 | 0.5 | 0.1 | 20.6% | |||
TV conference lenses ¥0.2 | |||||||
TV conference lenses | 0.6 | 0.7 | 0.1 | 36.8% | |||
Camera Module | 0.2 | 0.4 | 0.2 | 79.1% | ¥0.7 | ¥0.6 | |
Net Sales
（Billions of JPY）
¥0.4 | Surveillance lenses | |
¥2.0 | ¥1.3 |
¥0.5
FA lenses Inner circle: 1Q FY23
Outer circle: 1Q FY24
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③ Mobility ＆Healthcare, Others
◆ Sales of Automotive lenses increased significantly by more than 70% due to strong demand mainly for sensing applications due to the popularization of Advanced Driving Assistant System (ADAS).
◆ Sales of Healthcare components in the cultivation field increased by approximately 3 times due to the increased lineup. ◆ While cultivating new fields, profit margins improved with the strong sales of mainstay automotive lenses, resulting in a
significant Operating Income increase of approximately 2.6 times.
（Millions of JPY） | 1Q FY23 |
Net Sales | 1,690 |
Operating Income | 284 |
(% Sales) | 16.8％ |
VS. 1Q FY23 | VS. 1Q FY23 | |||
1Q FY24 | ||||
Inc./Dec. | % | FX Impact | ||
2,935 | 1,245 | 73.6% | 250 | |
729 | 444 | 156.3% | 90 | |
24.8％ | 8.0% | - | - | |
Sales Breakdown
DSC/VC, Drone, etc. | （Billions of JPY） | ||||||
VS. 1Q FY23 | |||||||
（Billions of JPY） | 1Q FY23 | 1Q FY24 | ¥0.35 | ||||
Inc./Dec. | % | ||||||
Automotive lenses | 1.4 | 2.4 | 1.0 | 73.3% | Healthcare | ||
¥0.15 ¥0.25 | |||||||
Healthcare | 0.05 | 0.15 | 0.1 | 217.8％ | |||
components | ¥0.05 | ||||||
DSC/VC, Drone, etc. | 0.25 | 0.35 | 0.1 | 41.7％ | Net Sales | Automotive lenses | |
¥2.4 | |||||||
¥1.4
Inner circle: 1Q FY23
Outer circle: 1Q FY24
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Summary of revenue and operating income by segment
（Millions of JPY） | 1Q FY23 | YoY (%) | 2Q FY23 | YoY (%) | 3Q FY23 | YoY (%) | 4Q FY23 | YoY (%) | 1Q FY24 | YoY (%) | |||||
Photographic | Net Sales | 9,615 | 1.3 | 13,809 | 4.3 | 14,207 | 26.6 | 15,399 | 33.2 | 13,944 | 45.0 | ||||
Products | Operating | 2,666 | 20.0 | 3,839 | 8.3 | 3,948 | 30.0 | 3,553 | 51.0 | 4,019 | 50.8 | ||||
Income | |||||||||||||||
Surveillance & FA | Net Sales | 3,215 | 24.5 | 2,216 | (28.7) | 2,312 | (25.1) | 2,041 | (16.8) | 2,939 | (8.6) | ||||
Lenses | Operating | 288 | 37.8 | 286 | (39.4) | 102 | (78.8) | 37 | (83.6) | 428 | 48.4 | ||||
Income | |||||||||||||||
Mobility & | Net Sales | 1,690 | (3.1) | 2,203 | 44.8 | 2,510 | 47.0 | 2,202 | 28.5 | 2,935 | 73.6 | ||||
Healthcare Products, | Operating | 284 | 13.5 | 385 | 123.8 | 507 | 41.9 | 314 | 12.0 | 729 | 156.3 | ||||
Others | Income | ||||||||||||||
Total | Net Sales | 14,521 | 5.1 | 18,230 | 2.0 | 19,031 | 18.8 | 19,642 | 24.9 | 19,819 | 36.5 | ||||
Operating | 2,630 | 26.4 | 3,847 | 7.1 | 3,704 | 18.9 | 3,425 | 52.2 | 4,547 | 72.9 | |||||
Income | |||||||||||||||
Net Sales
（Billions of JPY）
25.0
20.0 | 18.2 | 19.0 | 19.6 | 19.8 | |||||
17.9 | |||||||||
16.0 | 15.7 | 14.5 | |||||||
15.0 | 13.8 | ||||||||
14.2 | 15.4 | 13.9 | |||||||
13.2 | 13.8 | ||||||||
10.0 | 11.2 | 11.6 | |||||||
9.5 | 9.6 | ||||||||
5.0 | 2.3 | 2.9 | |||||||
3.1 | 3.1 | 3.2 | 2.2 | 2.0 | |||||
2.6 | 2.5 | ||||||||
0.0 | 1.7 | 1.5 | 1.7 | 1.7 | 1.7 | 2.2 | 2.5 | 2.2 | 2.9 |
22/1Q | 22/2Q | 22/3Q | 22/4Q | 23/1Q | 23/2Q | 23/3Q | 23/4Q | 24/1Q | |
Operating Income/ Operating Income ratio
（Billions of JPY）
6.0 | 35% | |||||||||
5.0 | 27.1% | 27.7% | 27.8% | 27.8% | 28.8% | 30% | ||||
26.8% | ||||||||||
23.1% | ||||||||||
24.8% | ||||||||||
23.4% | ||||||||||
25% | ||||||||||
4.0 | ||||||||||
20.9% | 20.2% | |||||||||
3.0 | 15.2% | 20.4% | 16.8% | 17.5% | 4.0 | 20% | ||||
14.4% | ||||||||||
16.4% | 3.8 | 3.9 | 14.3% | 15% | ||||||
3.5 | 3.0 | |||||||||
12.9% | 3.6 | 14.6% | ||||||||
2.0 | 11.3% | 15.7% | 2.4 | 2.7 | 10% | |||||
2.2 | 4.4% | |||||||||
9.4% | ||||||||||
1.0 | 8.1% | 9.0% | 0.4 | 5% | ||||||
0.5 | 0.1 | 1.9% | ||||||||
0.2 | 0.5 | 0.2 | 0.3 | 0.3 | 0.7 | |||||
0.4 | 0.4 | 0.5 | 0.0 | |||||||
0.0 | 0.3 | 0.2 | 0.3 | 0.3 | 0.3 | 0% | ||||
22/1Q 22/2Q 22/3Q 22/4Q 23/1Q 23/2Q 23/3Q 23/4Q 24/1Q |
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Tamron Co. Ltd. published this content on 26 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 April 2024 14:36:18 UTC.
