NSG reported in its annual consolidated financial statement for the fiscal year (FY) ending March 31, 2024, that it was impacted by a challenging business environment throughout 2023, which included rising material and labor costs and global inflation.

The Tokyo-based company released its FY2024 financial report on Friday, revealing a challenging second half of 2023. Company officials explained that while its architectural glass sector was buoyed by strong demand in the first half of 2023, the latter half was “heavily influenced by the economic downturn in Europe.”

NSG established the Revival Plan 24 to help secure profits in challenging business environments.

Officials say the company needs to drive down production costs and seek price pass-throughs to return to profitability. To achieve these, NSG must address several key factors, including improving the company’s financial base to reduce debt and improving the equity ratio by enhancing profitability and cash generation capabilities. They explain that it will be vital for the company to establish a business structure that is not reliant on economic fluctuations (e.g., inflation, economic slowdowns and interest rates) and not dependent on debt.

Officials say NSG will continue to invest in research and development, such as glass coating technologies, and promote decarbonization. This will help the company fend off competitors seeking low-cost products and those propped up by government subsidies.

NSG has also established a plan (Revival Plan 24) to help it secure profits in challenging business environments. The plan includes reducing labor costs, increasing investments for North American and Malaysian solar projects, reducing capacity at its Chiba, Japan, plant, withdrawing from the Russian market, and more.

Architectural Glass

NSG’s architectural glass segment, which represents 45% of its cumulative revenues, recorded $2.3 billion* in revenue in FY2024, up from $2.2 billion* in FY2023. Data also shows that NSG’s architectural glass segment’s operating profit before exceptional items was $180 million* in FY2024, down from $208 million* in FY2023.

Officials say the architectural glass segment showed declining performances across Europe and North America. These declines were partially offset by gains in Japan and South America and the continued growth of solar energy. The Americas, representing 32% of NSG’s architectural glass sales, stayed steady in FY2024. However, North America’s architectural glass market remained sluggish, offset only by increased solar energy demands.

FY2024 Consolidated Income Statement 

  • Revenue: $5.1 billion (2024), $4.7 billion (2023)
  • Cost of sales: -$4 billion (2024), -$3.6 billion (2023)
  • Gross profit: $1.2 billion (2024), $1 billion (2023)
  • Distribution costs: -$398 million (2024), -$397 million (2023)
  • Administrative expenses: -$481 million (2024), -$424 million (2023)
  • Operating profit before exceptional items: $222 million (2024), $216 million (2023)
  • Operating loss after exceptional items: $223 million (2024), -$64 million (2023)

*Financial data converted from JPY to USD on Monday, July 1, 2024


Leave a Reply

Your email address will not be published. Required fields are marked *