Financial Highlights for Fiscal Year
Ended December 31, 2024 (FY 2024)
(In millions of yen; amounts rounded down to the nearest million yen)
| FY 2023 | FY 2024 | YoY change | |
| Net sales | 4,536 | 4,931 | +394 (+8.7%) |
| Operating profit | 472 | 473 | +1 (+0.3%) |
| Ordinary profit | 530 | 557 | +27 (+5.1%) |
| Profit attributable to owners of parent | 308 | 423 | +114 (+37.2%) |
Consolidated Business Performance for FY 2024
Having designated the period from FY2024 to FY2025 as a groundwork phase in preparation for market development, during the fiscal year under review we forged ahead with initiatives aimed at transforming the business and bolstering performance.
【Domain of support for sustainable corporate management:
Cyano Project integrated support services】
Cyano Project integrated support services】
In the "Cyano Project," which assists in transitioning to corporate sustainability, we have been offering total support for various sustainability initiatives. We continue to receive inquiries and new orders for circular economy and TNFD (Taskforce on Nature-related Financial Disclosures)-related support. To expand medium- and long-term transition strategy support orders, we are rebuilding product design and strengthening marketing and sales. We are also developing new offerings, such as seminars on transition strategies and workshops on building circular businesses with external partners, to invigorate the sustainability and circular market.
Against the background of the emergence of governance risks caused by shortages of human resources and issues of knowledge transfer at client companies, our Sustainable BPO services, which use ICT and BPO to support circular corporate management, are performing steadily. At Circular LinX CO., LTD., a joint venture between the Company and the Sumitomo Mitsui Finance and Leasing Group established on April 1, 2024, we are offering ICT and BPO services aimed at enhancing business efficiency and improving service quality, and are already seeing the emergence of effects linked to sales, such as a year-on-year increase in inquiries for services since April 2024.
In the Double Zero Emission Service, which promotes the shift to zero incineration, zero landfill, and zero GHG emissions through closed-loop resource recycling of industrial waste, demand for circulating resources remains strong. We saw increased volumes in substitute fuels for cement and launched new recycling facilities at the Kitakyushu Resource Recycling Plant. These new facilities, along with automation and reduced labor at existing plants, have led to an upward trend in volume handled compared to the previous fiscal year.
Against the background of the emergence of governance risks caused by shortages of human resources and issues of knowledge transfer at client companies, our Sustainable BPO services, which use ICT and BPO to support circular corporate management, are performing steadily. At Circular LinX CO., LTD., a joint venture between the Company and the Sumitomo Mitsui Finance and Leasing Group established on April 1, 2024, we are offering ICT and BPO services aimed at enhancing business efficiency and improving service quality, and are already seeing the emergence of effects linked to sales, such as a year-on-year increase in inquiries for services since April 2024.
In the Double Zero Emission Service, which promotes the shift to zero incineration, zero landfill, and zero GHG emissions through closed-loop resource recycling of industrial waste, demand for circulating resources remains strong. We saw increased volumes in substitute fuels for cement and launched new recycling facilities at the Kitakyushu Resource Recycling Plant. These new facilities, along with automation and reduced labor at existing plants, have led to an upward trend in volume handled compared to the previous fiscal year.
【Environmental certification assessment service】
Orders from new customers, especially for FSC® CoC certification and MSC/ASC CoC certification, have been increasing steadily. Delays in assessments caused by deficiencies in the systems of our FSC certification agency partner are in the process of being resolved but are still ongoing. As a result, sales associated with some assessments that were scheduled to be recorded by the Group in the fiscal year ended December 31, 2024, are now expected to be recorded in the following fiscal year.
【Overseas business】
Primarily through AMITA CIRCULAR DESIGN SDN. BHD. ("ACD"), AMITA Group's regional headquarters for the Asia-Pacific, we promoted the expansion of the Social Systems Design Business in the Asia Pacific region through such initiatives as expanding the closed-loop resource recycling business in Malaysia, and investigating commercialization in Indonesia.
Malaysia
With regard to closed-loop resource recycling of industrial waste in Malaysia, there is strong demand for circulating resources locally and volume handled is exceeding previous-fiscal year levels. We are strengthening sales in order to win further new projects as they appear. Based on the memorandum of understanding for strategic business alliance that it concluded on September 2, 2024 with Cenergi SEA Berhad (Cenergi), which is engaged in the renewable energy business in Malaysia, the Company is moving forward with a commercial feasibility study on converting unused biomass materials in Malaysia into biofuels and developing a business model around them.
Indonesia
On September 2, 2024, ACD established a joint venture with PT Tamaris Prima Energi, which is part of the Tamaris-Moya Group, which is engaged in the renewable energy and public water supply businesses in Indonesia and is itself part of the Salim Group, one of the largest conglomerates in Southeast Asia. The joint venture, which is named PT Amita Tamaris Lestari ("ATL"), is tasked with developing decarbonized, circular business models. Moreover, on October 7, 2024, ATL established a joint venture PT Amita Prakarsa Hijau, which is engaged in the closed-loop resource recycling business locally with PT Sari Bhakti Sejati, a subsidiary of leading Indonesian cement manufacturer PT Indocement Tunggal Prakarsa Tbk. We are forging ahead with initiatives to lay the business foundation, aiming to open a resource recycling plant in Indonesia by the end of FY2027 in preparation for the full-fledged development of the closed-loop resource recycling business.
Business development in other countries
As measures related to the Ministry of the Environment's "City-to-City Collaboration Program to Support the Decarbonization Efforts by Overseas Subnational Governments" initiatives for decarbonization in India, Indonesia, and Palau, which were adopted on April 1, 2024, we are conducting investigations, etc. in preparation for the commercialization of waste resource recycling in each country. Based on an agreement (concluded on May 1, 2024) with Ramky Group, a leading player in the Indian environmental industry and our partner for feasibility studies, to jointly conduct a comprehensive feasibility study on developing decarbonized societies and circular economies with a focus on India and other developing countries, as well as Singapore.
With regard to closed-loop resource recycling of industrial waste in Malaysia, there is strong demand for circulating resources locally and volume handled is exceeding previous-fiscal year levels. We are strengthening sales in order to win further new projects as they appear. Based on the memorandum of understanding for strategic business alliance that it concluded on September 2, 2024 with Cenergi SEA Berhad (Cenergi), which is engaged in the renewable energy business in Malaysia, the Company is moving forward with a commercial feasibility study on converting unused biomass materials in Malaysia into biofuels and developing a business model around them.
On September 2, 2024, ACD established a joint venture with PT Tamaris Prima Energi, which is part of the Tamaris-Moya Group, which is engaged in the renewable energy and public water supply businesses in Indonesia and is itself part of the Salim Group, one of the largest conglomerates in Southeast Asia. The joint venture, which is named PT Amita Tamaris Lestari ("ATL"), is tasked with developing decarbonized, circular business models. Moreover, on October 7, 2024, ATL established a joint venture PT Amita Prakarsa Hijau, which is engaged in the closed-loop resource recycling business locally with PT Sari Bhakti Sejati, a subsidiary of leading Indonesian cement manufacturer PT Indocement Tunggal Prakarsa Tbk. We are forging ahead with initiatives to lay the business foundation, aiming to open a resource recycling plant in Indonesia by the end of FY2027 in preparation for the full-fledged development of the closed-loop resource recycling business.
As measures related to the Ministry of the Environment's "City-to-City Collaboration Program to Support the Decarbonization Efforts by Overseas Subnational Governments" initiatives for decarbonization in India, Indonesia, and Palau, which were adopted on April 1, 2024, we are conducting investigations, etc. in preparation for the commercialization of waste resource recycling in each country. Based on an agreement (concluded on May 1, 2024) with Ramky Group, a leading player in the Indian environmental industry and our partner for feasibility studies, to jointly conduct a comprehensive feasibility study on developing decarbonized societies and circular economies with a focus on India and other developing countries, as well as Singapore.
【Domain of support for sustainable corporate management:
Co-Creation City】
Co-Creation City】
We are advancing the Co-Creation City initiative to address the major challenges faced by regional municipalities through enhanced community engagement and resource circulation. Specifically, we have continued developing the MEGURU COMPLEX*1 resource recycling solution for municipalities and maintained activities for the geographical expansion of MEGURU STATION® community-type resource collection stations in Tachiarai and Buzen (Fukuoka Prefecture), Kobe (Hyogo Prefecture), Nara (Nara Prefecture, Tsukigase district), and Nagakute (Aichi Prefecture).
In December 2024, we introduced two MEGURU STATION® locations in Buzen, Fukuoka Prefecture, the first in the city. We're advancing sustainable community development initiatives in Buzen, including a points system implementation with NEC Solution Innovators, Ltd. and Tsunaken Regional Connection & Development Organization for regional revitalization.
Elsewhere, based on the Kameoka Future Creation Environmental Partnership Agreement concluded with Kameoka, Kyoto Prefecture (September 9, 2024), we are working together on sustainable community development through a resource circulation ecosystem.
In terms of the initiatives related to construction of the MEGURU PLATFORM*2, we have continued building a circular model for plastics centered on MEGURU STATION®, as part of the Cabinet Office's Cross-ministerial Strategic Innovation Program (SIP), since July 2023.
In December 2024, we introduced two MEGURU STATION® locations in Buzen, Fukuoka Prefecture, the first in the city. We're advancing sustainable community development initiatives in Buzen, including a points system implementation with NEC Solution Innovators, Ltd. and Tsunaken Regional Connection & Development Organization for regional revitalization.
Elsewhere, based on the Kameoka Future Creation Environmental Partnership Agreement concluded with Kameoka, Kyoto Prefecture (September 9, 2024), we are working together on sustainable community development through a resource circulation ecosystem.
In terms of the initiatives related to construction of the MEGURU PLATFORM*2, we have continued building a circular model for plastics centered on MEGURU STATION®, as part of the Cabinet Office's Cross-ministerial Strategic Innovation Program (SIP), since July 2023.
*1 : MEGURU COMPLEX
MEGURU COMPLEX is a resource circulation solution for municipalities that embodies the Co-Creation City concept. By clustering a biogas power plant for flammable waste recycling together with facilities for recycling diapers and for pyrolysis, we aim to reduce waste incineration and landfill to zero.
*2 : MEGURU PLATFORM
MEGURU PLATFORM consists of MEGURU STATION® community-type resource collection station, and MEGURU FACTORIES, where quality resources and information are gathered and the collected traceable resources are turned into circular materials. In preparation for realizing the AMITA Vision 2030, we are working to build a framework to generate the optimal circulation of tangibles, information, and people's thoughtfulness.
【Partnership domain】
We participate in the Ecosystem Society Agency (ESA) as a founding member. Based on the concepts of circulation and inclusivity, ESA is a platform where regional municipalities, companies, and other entities collaborate to create social value. To promote the circular economy, we are implementing partnership and collaborative projects with companies.
Net Sales
The Group net sales for the fiscal year under review were 4,931 million yen(up 8.7% or 394 million yen from the previous fiscal year) due mainly to an increase in the volume of substitute fuels for cement handled at the Himeji Resource Recycling Plant and at AMITA Resource Recycling Partners' AICHI KAIUN Co., Ltd. Gamagori Recycling S.C., an increase in the volume of silicon recycling at the Kitakyushu Resource Recycling Plant.
Operating Profit
Despite increases in cost of sales, and selling, general and administrative expenses caused by investments in human resources, activities to build relationships and implement strategies, and other factors, the increase in net sales resulted in operating profit of 473 million yen (up 0.3%, or 1 million yen YoY).
Ordinary Profit
The Group's ordinary profit was 557 million yen (up 5.1% or 27 million yen YoY) due to an increase in share of profit of entities accounted for using equity method related to the Malaysian business and foreign exchange gains.
Profit attributable to owners of parent
Profit attributable to owners of the parent was 423 million yen (up 37.2% or 114 million yen YoY) due to an increase in ordinary profit and recording of income taxes - deferred (gain) as a result of an increase in deferred tax assets.
Key Financial Metrics
■Operating Profit Margin
■Ordinary Profit Margin
■ROE(Return on Equity)
■ROIC(Return on Invested Capital)
Financial and Performance Information
| 2022 | 2023 | 2024 | ||||
| Net sales (1,000 yen) |
4,824,795 | 4,536,499 | 4,931,476 | |||
| Operating profit (1,000 yen) |
609,728 | 472,160 | 473,480 | |||
| Ordinary profit (1,000 yen) |
715,537 | 530,844 | 557,890 | |||
| Profit attributable to owners of parent (1,000 yen) |
531,242 | 308,345 | 423,184 | |||
| Comprehensive income (1,000 yen) |
563,637 | 312,085 | 479,079 | |||
| Net assets (1,000 yen) |
2,001,050 | 2,266,204 | 2,733,759 | |||
| Total assets (1,000 yen) |
4,824,280 | 6,175,708 | 6,594,824 | |||
| Net assets per share (Yen) *3 |
113.69 | 128.77 | 152.01 | |||
| Profit per share (Yen)*3 |
30.29 | 17.57 | 24.11 | |||
| Operating profit margin （％） |
12.6 | 10.4 | 9.6 | |||
| Equity capital ratio （％） |
41.4 | 36.6 | 40.5 | |||
| Net cash provided by operating activities (1,000 yen) |
585,083 | 725,473 | 474,644 | |||
| Net cash provided by (used in) investing activities (1,000 yen) |
(69,841) | (441,033) | (514,486) | |||
| Net cash provided by (used in) financing activities (1,000 yen) |
(142,166) | 754,430 | (108,993) | |||
| Ending balance of cash and cash equivalents (1,000 yen) |
1,779,633 | 2,829,579 | 2,729,355 |
*3)
The Company carried out a 3-for-1 stock split of its common shares as of October 1, 2022. Under the assumption that such stock split was implemented at the beginning of the fiscal year 2022, the Company calculates "earnings per share" and "diluted earnings per share."
For more detailed earnings information, please refer to the links below.
■Quarterly Financial Statements（https://en.amita-hd.co.jp/ir/result.html）
Notices
■Data provided in this section is compiled from the Company's quarterly earnings announcements. For more detailed earnings information, refer to the Company's quarterly earnings announcements and financial reports.
■In compiling data provided in this section, we have made every effort to ensure its accuracy. Despite our best efforts, data may not be entirely accurate for internal or external reasons beyond our control.
■This section may not be updated immediately after corrections are made to published earnings announcements.
（Next update on this section is scheduled for March, 2026.）
