Message from Top Management

During the first half of FY 2024, the global economy showed signs of a recovery in global investment demand, particularly in the manufacturing sector; however, the recovery was slower than expected. In China, Asia and Japan, demand remained firm, showing signs of a recovery in the automotive-related industry, which is one of our primary customer industries, as well as in semiconductors and electronic components. On the other hand, in Europe and US, the effects of stagnate market conditions, continuing geopolitical risk and a cautious approach towards capital investments continues to challenge demand.

In this economic environment, the MISUMI Group leverages its unique Business MODEL, which encompasses manufacturing and distribution businesses. We contribute to automation-related industries, primarily manufacturing, by evolving the business infrastructure that supports these operations on a globally level and by responding to customers’ needs for reliable and quick delivery. We will continue to develop new businesses, including new products and services, while leveraging our strong IT, manufacturing and logistics business foundations and global network base that we have built up over the years, and strive to accurately capture customer demand.

This resulted in consolidated net sales of ¥198,022 million (10.0% increase year-over-year), and we achieved record semi-annual sales, partially due to the exchange rate effects. By segment, in the FA business, we steadily captured demand mainly in China and Japan, with sales of ¥66,854 million (15.5% increase year-over-year). In the Die Components business, while automotive-related demand in China, Asia and Japan is on a recovery trend, demand in Europe and the US remained challenged, resulting in sales of ¥42,819 million (8.9% increase year-over-year). In the VONA business, sales were solid in all overseas regions, with sales of ¥88,347 million (6.6% increase year-over-year). 

In terms of profit, despite continued expenses related to measures for sustainable growth, operating income was ¥23,390 million (26.3% increase year-over-year), ordinary income was ¥25,221 million (26.1% increase year-over-year), and semi-annual net income attributable to owners of the parent was ¥18,200 million (28.3% increase year-over-year). These results were due to increased sales volume, product mix and exchange rate effects.

Regarding our consolidated earnings forecast, we saw a gradual recovery in global investment demand, particularly in the manufacturing industry during this six-month period and, partly as the result of the effects of our unique measures, both net sales and profit exceeded the forecasts announced on April 26, 2024. On the other hand, market conditions remain uncertain and taking into consideration the progress made to date and current demand trends, we have upgraded our forecasts, as announced on October 25, 2024, and expecting to reach record highs in our net sales result.

In terms of future initiatives, we will continue our efforts towards the development of the Digital MODEL to respond to customers’ increasingly diverse automation needs. We will also build unique competitive advantages through synergies with our region-specific growth strategies. 

We are steadily accelerating the roll-out of the online procurement service “meviy” for machine parts, our first installment in our “Digital MODEL Shift.” The cumulative number of users has exceeded 160,000 globally, and we will progressively reinforce this service with products and systems that meet the diverse needs of our global customers. Also, in September, as a new platform for ordering processed products, we have launched the “meviy Marketplace,” a service that eliminates the tremendous effort by customers in searching for suppliers to enable one-stop shopping. In collaboration with carefully selected partners, we have expanded into domains that were previously outside meviy’s processing scope, greatly reducing the effort required by customers to procure parts; we have been able to realize the expansion of the range of products while simultaneously improving the convenience for our customers.

In addition, in our second installment, penetration of our highly competitive “Economy Series products,” is expanding in China, Asia and Japan. Our measures to differentiate ourselves through products and tools we have internally developed, based on customer demand in each region, we have been successful, and sales remain steady.

Finally, in the third installment, “D-JIT,” which offers quick delivery of customers’ desired quantities in a short delivery time even for large volume orders, the number of customers are increasing due to improved quantity response capabilities, and sales are increasing including overseas regions where test rollouts are being conducted.

On October 7, 2024, we entered into a capital and business alliance with Punch Industry Co., Ltd. By fully leveraging the strengths of both companies, we will continue to grow and develop, complementing and strengthening each other, not only in automated equipment and their peripheral parts in die and mold components but a wide range of metal processing segment, from standard to customized parts.

Our Company strives to maintain a balance between growth investments and returns to our shareholders from a medium- to long-term perspectives. In regard to the dividends, we consider factors such as expanding the management foundation, strengthening financial health, and improving capital efficiency. Based on these factors the dividend for the fiscal year ended March 31, 2024, have been decided based on a dividend payout ratio at 30%. Under this policy, we paid an interim dividend of ¥19.83 per share (¥7.23 increase year-over-year). Due to the revision of our consolidated earnings forecast for the fiscal year ending March 31, 2025, we have revised our forecast year-end dividend to ¥20.59 per share (¥5.72 increase year-over-year) and anticipate an annual dividend of ¥40.42 per share.

Kosuke Nishimoto
Representative Director and Chairman

Ryusei Ono
Representative Director and President