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1H FY12/2024 review

Noritsu Koki reported strong earnings for the first half of FY12/2024 (1H FY12/2024), driven by growth in the audio equipment/peripherals business, which was also supported by a positive impact from the weak yen. We revised up 1H FY12/2024 guidance with 1Q results on 10 May, but growth in revenue and profits surpassed these upgraded forecasts.
While earnings in the parts/materials business were steady year on year, the audio equipment/peripherals business performed better than expected, helping to lift consolidated revenue 29.3% year on year to ¥52,763 million.
After completing the sale of our shares in former consolidated subsidiary PreMedica Inc. on May 31, 2024, the “Other” segment was discontinued, effective from 1H FY12/2024. The Company now has two reporting segments – “Parts/Materials” and “Audio Equipment/Peripherals.” Supported by gains on the sale of shares in PreMedica, interim net profit increased 157.8% year on year to ¥11,484 million.

Key measures based on the Medium-Term Management Plan FY25

In the parts/materials business, Teibow faces continued sluggish demand in the cosmetics field, but it aims to grow and stabilize earnings by stepping up expansion overseas and by making refinements to production activities to improve efficiency. In the MIM business, a growth area, Teibow will redouble efforts to develop new customers and partners to support full-fledged moves into the global market.
In the audio equipment/peripherals business, AlphaTheta changed the branding of its user account and support services from Pioneer DJ to AlphaTheta in December 2023, as part of efforts to expand its business and strengthen its brand. It also launched new products under the AlphaTheta brand in January 2024. In addition to reinforcing its existing technologies and brands, the company will also focus on developing its position in emerging markets.
Although we decided to terminate our acquisition of Serato Audio Research Limited, the strong partnership between AlphaTheta and Serato remains unchanged. We plan to continue increasing our investment in growth areas such as software.
Also in the audio equipment/peripherals business, JLab’s efforts to improve the cost ratio, raise quality levels and tighten inventory management have helped reduce product returns in value terms, even as gross sales have increased. These efforts have supported an improvement in profitability. JLab aims to capture more market share in the US, backed by its wide range of products, as well as strengthen sales in markets outside the US by leveraging the trust and the product development and supply capabilities it has built up in its home market.
To realize our vision of “a corporate group that continues to create ‘No.1/Only 1’ businesses,” all Group companies will work together to maximize growth opportunities by investing in the development of highly innovative new businesses and products.
I look forward to your continued support as the Noritsu Koki Group strives to realize these goals.

September 2024