Kito FY2022 Q2 results sees 21.4% increase

10 August 2022

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Kito Corporation has announced its financial results for the quarter ended June 30, 2022, reporting net sales of JPY16,756 FY2022 Q2 (compared to JPY13,797 in FY2021 Q1) representing a YoY +21.4% increase, and gross profit of JPY5,810 a 22.7% increase, a record high for the company.

In its financial report the company said in a statement: it ‘continued to increase production in response to strong demand in North America and Europe, focusing on securing profit by improving production efficiency and reviewing sales prices. Its operating profit decreased due to one-time advisory expenses relate to business integration’.

“Our sales have been growing year-on-year for two years, reaching another record high. Despite the continuing rise in prices for materials and energy, we reviewed our retail price and focused on production efficiency. Our operating profit was down compared with last year because of advisory fees related to our preparation for business integration with the Crosby Group. Due to the weakening yen our pretax profit and net profit both reached new record highs,” accompany spokesman said.

The FY2022 forecast includes; Japan (sales forecast JPY 15bn UP 8.4% YoY) where urban development and infra-related projects will become apparent and economic recovery led by small and midsize companies is expected, enhancing sales by dedicating personnel to large projects.

Americas (sales forecast JPY 32.5bn up 8.2% YoY). Firm demand for both private sector investment and infrastructure investment remained firm but the impact of material cost, disruptions in transportation, labor shortage needs careful watching. Kito will differentiate from its competitors but seeking synergies between increased share and market expansion and review its pricing and focus on reliable product supply and maintenance of customer-service quality.

China (sales forecast JPY 9.2bn up to 18.8% YoY) where its share growth is trending higher with increasing public awareness about the environment and quality and launching a strategy to promote its safety value.

Asia (sales forecast JPY 5.3bn up to 38.6% YoY) where the LCD-related demand in South Korea is recovering and emerging from a prolonged period of stagnation. It will enhance services including crane maintenance and hoist sales and work to expand its customer bases in Thailand and South Korea.

Europe (sales forecast JPY 5.6bn up to 15.5% YoY). Here it sees stable demand despite geopolitical concerns and soaring energy costs must be closely monitored. Further business growth will come from synergy of cooperation among group companies.

The company said: it will ‘further expand its customer services by strengthening its e-commerce sites and contribute broadly to society using an environment-conscious supply chain and products and services that help secure safe work environments’.