LIXIL Core Earnings

LIXIL Core Earnings Up in Q2 FYE2024

Please see below some highlights of today’s announcement of the financial results for the second quarter of the fiscal year ending March 31, 2024 from LIXIL, a manufacturer of pioneering water technologies and housing products whose brand portfolio also includes the GROHE brand. The full press release in English can be found here.

  • Revenue flat while core earnings up year-on-year as price optimization initiatives contribute to higher gross profit margin

  • Recovery of profitability impacted by higher fixed costs from decreased sales and production. Structural reforms focused on improving international business ongoing

Statement by Kinya Seto, CEO, LIXIL:

“We continued to face a challenging macroeconomic environment in the second quarter, impacted by the slow recovery of international markets, especially Europe, due to rising interest rates and inflation. Despite this, core earnings increased year-on-year.

In Japan, price optimization initiatives and demand for high-performance windows in the renovation sector steadily increased profitability, and we expect this will continue. In our international business, the external business environment remains uncertain, mainly in Europe. We are promoting structural reforms to strengthen resiliency and expect to see the initial effects of these efforts from the fourth quarter onward.

We remain focused on the strategic priorities outlined in the LIXIL Playbook. This includes implementing measures to raise market share in Japan with the normalization of the competitive environment. We are also expanding our range of environmentally friendly products, such as PremiAL R100, a 100% recycled aluminum building material. Through these advanced technologies and products, we strive to contribute to a decarbonized society and the realization of a circular economy.”

Financial Highlights (6-month period):


Revenue remained generally flat at ¥732.2 billion. In the international business, revenue declined by 4% to ¥248.3 billion primarily due to weakened demand, especially in Europe. Excluding the impact of FOREX rates, revenue declined by 11%.

Core Earnings

Core earnings increased year-on-year by 43.6% to ¥8.8 billion. While the weak yen impacted procurement costs in the Japan business and personnel costs for the international business, LIXIL’s price optimization initiative and the stabilization of raw material and component procurement costs positively impacted core earnings margin by 0.4 pp to 1.2%.

Net profit attributable to owners of the parent

Net profit decreased by 86.8% year-on-year to ¥0.5 billion, reflecting the absence of last year’s gain on the transfer of land and other assets, and an increase in finance costs.

Year-End Dividend Forecast

LIXIL has maintained its forecast for the annual dividend at ¥90 per share. The interim dividend of ¥45 has been resolved.

Performance by Business Segment and Region

LWT’s international business recorded revenue of ¥235.8 billion, a 3.5% decrease year-on-year. Demand remained weak in Europe, previously a highly profitable market, due to an uncertain economic environment and rising interest rates. On a local currency basis, revenue decreased in all regions: Americas, EMEA, APAC, and Greater China. Core earnings decreased by ¥10.7 billion to -¥0.8 billion.

"In the EMENA region, we continue to face a volatile market environment. The performance mirrors the downturn in the construction industry and a hesitation to buy among consumers. While we continue to focus on the delivery of our end-user focused go-to-market strategy for the GROHE brand, we are also working on measures to make our business in the region more resilient to current and future challenges," comments Bijoy Mohan, Leader LIXIL International and currently also responsible for the EMENA region.

Exchange rate: Euro / Yen = 1 / 153.51


Tim Pelargus
Tim Pelargus

Tim Pelargus

Communications Manager

+49 211/9130 3030