KK Nifco

Latest Results (14.08.2024):

Q2 Financial Overview

In the second quarter of FY2022, KK Nifco achieved an operating profit margin of 10.3%, despite facing challenges such as reduced automobile production and increased expenses. This was made possible by an increase in the installed value per vehicle and stringent control over fixed costs.

Full-year Forecast

KK Nifco has revised its exchange rate assumptions for FY2022 but has kept its full-year financial results forecast unchanged. The company anticipates increased expenses and a delayed recovery in automobile production but remains focused on reviewing unit prices. The dividend forecast for the fiscal year remains at 62 yen per share.

Revenue and Profit Increase

KK Nifco reported a year-on-year increase in both revenue and profit for Q2 FY2022. Net sales increased by 9.3% year-on-year, and operating profit saw a 1.5% year-on-year increase, driven by yen depreciation and strong performance in the Korean market. However, quarter-on-quarter, operating profit decreased by 7.5% due to overall cost increases.

Segment Performance

In the first half of FY2022, KK Nifco achieved an increase in net sales across all regions except Europe. The Chinese market showed a strong recovery post-lockdown, contributing to a 10.1% year-on-year increase in sales in Asia. However, the European market remained uncertain, resulting in a slight decline in sales.

Operating Profit by Segment

Despite cost hikes, KK Nifco's operations in Asia and the bed segment performed well, maintaining high profitability. However, the operating profit in Europe and North America declined year-on-year due to a slower recovery, resulting in lower overall profitability for these regions.