Pacific Cement is one of Japan's oldest and leading cement manufacturers.
Pacific Cement's official website shows that in fiscal year 2023, Pacific Cement's operating income was 809.542 billion yen, about 37.903 billion yuan, and its operating profit was 4.456 billion yen, about 209 million yuan; The net profit loss was 33.206 billion yen, or about 1.555 billion yuan. Pacific Cement's operating income trend in
the past five years is from: Pacific Cement's official website
Pacific Cement's net profit trend in the past five years is from: Pacific Cement's official website Pacific Cement's average operating income in the past five years is 836.413 billion yen. The average operating profit was 48.357 billion yen, or about 2.264 billion yuan, and the average net profit attributable to the parent company was 25.034 billion yen, or about 1.172 billion yuan. Financial data of
Pacific Cement in the past five years is from: Pacific Cement's official website
In fiscal year 2023, the operating profit of Pacific Cement decreased significantly, with a decrease of about 90.58% compared with that in fiscal year 2022. According to the official website of Pacific Cement, the reason for the decline in profits is the sharp increase in coal prices and the increase in cement production costs. In order to cope with the rising cost, Pacific Cement plans to raise the domestic cement sales price in Japan by 2,000 yen/ton in January 2022, which is about 93.82 yuan/ton; and in October 2022, it plans to raise the price again by 3,000 yen/ton, which is about 140 yuan/ton.
However, this plan was not carried out as scheduled. In fact, Pacific Cement successfully completed the plan of raising 2000 yen/ton in the third quarter of 2022.
At the same time, in fiscal year 2023, Pacific Cement's overseas operating profit also showed a certain decline . There were some technical problems in American factories, the sales volume of cement in China and the sales volume of cement exported to Vietnam both declined, combined with the increase of import cost of Philippine clinker , the operating profit of overseas business declined.
It is understood that in February 2023, Pacific Cement suspended the cement manufacturing and sales business of its subsidiary Jiangnan-Onoda Cement Co., Ltd. in Nanjing, Jiangsu Province, China. In October
2022, Pacific Cement suspended the cement manufacturing and sales business of its subsidiary Dalian Onoda Cement Co., Ltd. in Dalian, Liaoning Province. The aggregates business remained strong in fiscal
2023, particularly in the Kanto and Chubu regions. However, due to the rising cost of electricity and fuel, although Pacific Cement has raised the aggregate sales price, the effect of the price increase is not as expected. In the
environmental business, sales of calcium carbonate for desulfurization, gypsum and coal continued to be strong in fiscal year 2023. The biomass fuel business declined due to the impact of exchange rate fluctuations. In the
construction industry, although the sales of ALC board and other building materials are in good condition, the operating profit of the construction industry has also declined considerably due to the sharp rise in raw material prices and delays in construction orders.
Generally speaking, rising costs and shrinking market are the main reasons for the decline of Pacific Cement's performance in fiscal year 2023. This is also a common problem facing the global cement industry.
Note: Pacific Cement's fiscal year 2023 refers to April 1, 2022 to March 31, 2023.
