TOTO China Business Accounts For 15.7% Of Global Revenue, Smart Toilet Sales Over 6 Billion Yuan
Original Kitchen And Bathroom Industry Mainstream Media Kitchen And Bathroom Information
On April 28, TOTO announced its fiscal year 2020 performance report (April 1, 2020 to March 31, 2021), with operating income of 580.935 billion yen (RMB 34.548 billion) for the reporting period, down 2.6% year-on-year. Operating profit was 41,351 million yen (RMB 2,460 million), an increase of 12.5% year-on-year. Ordinary profit was 41,353 million yen, an increase of 14.5% year-on-year. Net income attributable to shareholders of the parent company was 27.199 billion yen (RMB 1.618 billion), up 15.3% year-on-year.
In terms of categories, TOTO Japan smart toilet Toilet revenue of 101.5 billion yen (6.05 billion yuan), an increase of 7% year-on-year. Sanitary ceramics revenue of 90.7 billion yen, faucets and other accessories revenue of 86 billion yen, the whole bathroom revenue of 89.3 billion yen, kitchen / bathroom cabinet revenue of 41.9 billion yen.
The following is TOTO’s global revenue by your region, including sales to external customers.
Due to TOTO’s non-compliance with the One China Principle, Taiwan’s results are not consolidated into the China region, and the China region described in its report is only the mainland market results. fiscal year 2020, TOTO’s mainland China market revenue reached RMB 4.479 billion, up 19% year-over-year. Operating profit was RMB873 million, up 7% year-over-year. Revenue in Taiwan, China, reached NT$4.03 billion (RMB 940 million), up 6% year-over-year. Operating profit was NT$1.075 billion (RMB 250 million), up 13% year-over-year. According to KitchenAid, the revenue of the whole China market reached 5.415 billion, accounting for 15.7% of the overall revenue, and the operating profit reached 1.123 billion yuan.
For the reporting period, operating income in Asia/Oceania was 28,184 million yen (down 13.5% year-on-year) and operating profit was 5,516 million yen. In addition, TOTO is strengthening its production capacity in Vietnam and Thailand, which will serve as its global supply base, as well as strengthening its sales capacity in emerging markets. Revenue in Vietnam for FY2020 reached VND424 billion (RMB1.19 billion) and operating profit was VND509 billion (down 146% year-on-year).
During the reporting period, the Americas market revenue was 35.792 billion yen, up 10.6% year-on-year (RMB 2.13 billion), and thanks to the surge in sales of smart toilets in Canada and the U.S., operating profit in the Americas increased 362.1% year-on-year to 2.935 billion yen. Among them, from January to December, the Americas region’s revenue of Toilet Smart Toilet increased by 50%, accounting for 33% of the local revenue ratio. In the middle and high-end markets, TOTO is promoting 3.8L water-saving toilets as well as sensor sanitary ware in the Americas. In the reporting period, operating income in Europe was 3.988 billion yen, up 6.2% (240 million yuan), and operating profit was 995 million yen (966 million yen in the previous fiscal year).
On the same day, TOTO also released its “New Shared Value Creation Strategy TOTOWILL2030,” which plans to increase the share of overseas revenue in the housing equipment business from 25 percent to 50 percent. tOTO suggested that the number of new housing starts has decreased due to the decrease in Japan’s population, although the demand for renovation has increased. At the same time, growth will be provided by expanding overseas markets due to the maturity of the Japanese smart toilet market.
In addition, TOTO expects revenue to increase by 9.9% year-on-year to 635 billion yen and operating profit to increase by 11.0% year-on-year to 44 billion yen in fiscal 2021. Of this, the residential equipment business in Japan will grow 11% to 465 billion yen, while the overseas residential equipment business will grow 45% to 200 billion yen. In addition, TOTO plans to invest 56 billion yen over three years to expand production at its U.S. plant in addition to China, the main overseas market, where sales of non-contact sensor sanitary ware are growing.