First, I would like to express my sincere gratitude for your continued support.
During the interim consolidated accounting period under review, Japan continued to see its moderate economic recovery led by domestic demand, with personal consumption gradually recovering against the backdrop of improvement in employment and income environment, and corporate capital investment on the increase. On the other hand, looking at the global economy, the future remains unpredictable due to the continuing high global resource and energy prices amid a prolonged conflict in Ukraine and the heightening tensions in the Middle East, exchange rate trends and rising prices, as well as the impact of the new US administration's policies following the presidential election.
Under these circumstances, we have posted higher sales in Japan thanks partly to an increase in orders related to pump equipment destined for the government market. Overseas sales declined; while demand was solid in the Asian market, North American consumers were reluctant to buy to see how the U.S. presidential election would unfold along with concerns about weak demand that may accompany rising unemployment. As a result of the foregoing, net sales for the interim consolidated accounting period under review amounted to 28,899 million yen (down 2.8% year-on-year), operating profit was 4,416 million yen (up 7.6% year-on-year), ordinary profit was 3,719 million yen (down 46.5% year-on-year), and profit attributable to owners of parent came to 4,235 million yen (down 12.2% year-on-year).
The fiscal year under review is the first year of our new three-year medium-term management plan, Transformation 2027. In July, ZENIT INTERNATIONAL S.P.A. (hereinafter, "ZENIT"), an equity-method affiliate of Tsurumi, became its wholly owned subsidiary and was included in the scope of consolidation to bolster the Group's business in rapidly growing overseas markets as part of our efforts to strengthen our management base in line with our global strategy, which is the Group's most important management issue. This will provide a springboard for the expansion of the Group's long-term growth and earnings base toward its enhanced corporate value. Regarding interim dividend, as already announced, we paid an interim dividend of 24 yen per share, including a commemorative dividend of 2 yen per share for the acquisition of 100% of the shares of ZENIT.
Keeping in mind our responsibility that the Group's products are indispensable for the social infrastructure, we will strive to ensure continuous product supply in a fully prepared manner.
In closing, I kindly ask our shareholders for their continued support and encouragement.
December 2024
President Osamu Tsujimoto
