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Recently, two more bathroom companies have announced their reports for the first half of fiscal year 2023 (April-September), including British Norcros and Japanese Cleanup. Both companies are one of the representative companies focusing on the local market. They face two different markets, the UK and Japan respectively. The increase or decrease in sales reflects the general conditions of the local construction industry. In addition, both companies mentioned overseas business in their financial reports. Norcros disclosed its current development status in the Chinese market, and Cleanup’s development strategy also showed its emphasis on overseas markets.
Norcros
Revenue from April to September was approximately 1.820 billion yuan, a decrease of 8.3%
The UK market accounts for the majority
There are over 120 cooperative suppliers in China
According to the public first-half fiscal year report of British sanitary ware company Norcros, from April to September 2023, the company’s total revenue was 201.6 million pounds (approximately RMB 1.820 billion), lower than 219.9 million pounds in the same period last year, a year-on-year decrease of 8.3% . Due to the decline in revenue, basic operating profit from April to September was 21.4 million pounds (approximately RMB 193 million), which was also slightly lower than the 22 million pounds in the same period last year; after deducting acquisition-related costs of 3.9 million pounds, operating profit was 15.3 million pounds. (approximately RMB 138 million), compared with 16.1 million pounds in the same period last year, and the profit margin increased from 10.0% in the same period last year to 10.6%.
Norcros’ main markets are the United Kingdom and South Africa. The UK business performed strongly from April to September, with revenue of 143.9 million pounds, basically the same as the same period last year. This was mainly attributed to the good sales performance of brands such as Triton, Merlyn and Grant Westfield in the UK market, which benefited from the launch of new products and outstanding performance. Inventory supply and excellent customer service. The performance of the Vado brand was affected by the postponement of new product launches, but the performance in the second fiscal quarter was still better than that in the first fiscal quarter; the market share of other British brands continued to grow, and their performance was in line with the company’s expectations. Due to good performance in sales and related business adjustments, Norcros’ basic operating profit in the UK market increased by 14.7% this year to 18.7 million pounds, which was better than the 16.3 million pounds in the same period last year. The operating profit margin increased from 11.4% in the previous year. increased to 13.0%.
In South Africa, the local business contributed revenue of 57.7 million pounds from April to September, a sharp decline from 77.1 million pounds in the same period last year. This was due to the significant increase in energy rationing levels, which had an adverse impact on consumer confidence and demand. Norcros’ brands in South Africa include House of Plumbing, TAL, Johnson Tiles, Tile Africa, wdg. Among them, the adhesive brand TAL achieved strong performance growth with its brand strength and leading technical support capabilities; Johnson Tiles and Tile Africa declined due to the negative impact of the market slowdown, but they are still in the leading position in the market; the House of Plumbing brand Revenue remained consistent with the same period last year. During the same period, the basic operating profit in the South African market was 2.7 million pounds, less than half of the same period last year, and the operating profit margin also fell from 7.4% to 4.7%.
Norcros disclosed its operating conditions in the Chinese market, especially its supply chain, in its financial report. Data shows that the group’s multiple brands have a total of more than 30 employees in Suzhou, Zhongshan, Ningbo, and Shanghai, and have more than 120 supplier partners.
Cleanup
Sales volume was approximately 3.062 billion yuan, an increase of 3.6%
Net profit decreased by 43.4% year-on-year
Full-year performance forecast revised downwards
Cleanup, a Japanese integrated bathroom and kitchen company, also recently announced its second fiscal quarter report. From April to September 2023, Cleanup achieved sales of 63.535 billion yen (approximately RMB 3.062 billion), a year-on-year increase of 3.6%. The growth was mainly due to an increase of 2.98 billion yen in overall kitchen business sales compared with the same period last year, which boosted overall sales. Amount of growth. In contrast, the overall bathroom and washbasin business decreased by 270 million yen and 40 million yen respectively. In terms of profit, Cleanup’s operating profit, regular profit and net profit fell by 40.4%, 34.6% and 43.4% respectively, of which net profit was 755 million yen (approximately RMB 36 million). The main reason for the profit decline was the increase in sales and administrative expenses. .
Cleanup mentioned three major strategies in its mid-term policy, including developing new demands for existing businesses, finding new customers through new businesses, and strengthening sustainable development. Cleanup regards expanding overseas business as one of its strategic policies. Its main measures include linking overseas companies to carry out overseas production and participating in overseas exhibitions. It will also use cash to invest in overseas markets.
In addition, Cleanup also revised its full-year performance forecast, predicting that sales in fiscal year 2023 will be 128.7 billion yen (approximately RMB 6.2 billion), a decrease of 1.8% from the previous forecast; net profit will be 2.3 billion yen (approximately RMB 1.11 billion), a decrease of 30.3% from the previous forecast.