Daikin sales up 5.5%

JAPAN: Daikin has reported a sales increase of JPY5,015,036m (US$31,814m) for the year to the end of March, a 5.5% increase on last year.

Operating profit was up 3.3% at JPY414,991m (US$2,633m).

Total air conditioning and refrigeration equipment sales increased by 5.4% year-on-year to JPY4,621,131m (US$29,316m), while operating profit increased by 7.4% to JPY376,991m (US$2,392m).

Daikin reports that while the global economy remained generally firm, uncertainty about the future increased due to US tariff policies and rising geopolitical risks.

Demand in the Japanese home market for both residential and commercial air conditioning exceeded the previous year’s figures. Commercial sales were driven by increased construction starts for retail stores and other facilities, supported by inbound tourism demand, as well as robust renewal demand, mainly for offices and commercial facilities. 

Increases in the Japanese residential sector were due to increased demand in anticipation of a heatwave from April, as well as the impact of the record-breaking heatwave in the summer and the Tokyo Zero-Emission Point Programme which started at the end of August.

Europe, Middle East and Africa

Daikin’s HVACR sales in EMEA were up 4.4% to a record-high of €5.25bn. The focus was on sales of residential R290 heat pumps, R32 VRV, and R290 and CO₂ refrigerated display cases. In Turkey, the expansion of residential air conditioning sales were described as “positive”, while the Middle East region, particularly Saudi Arabia and the United Arabic Emirates, saw significant growth in applied equipment sales.

Americas

Demand for residential air conditioning equipment in the Americas are said to have remained stagnant due to “persistently challenging economic conditions”, including inflation caused by US tariffs and high mortgage interest rates. This was said to be compounded by sluggish demand for replacement air conditioning equipment and persistently high inventory levels due to last year’s surge in demand related to refrigerant regulations. 

Sales grew in the applied air conditioning business in the Americas, through the expansion of its service business, along with the utilisation  of its Mexican chiller plant. Market growth was said to be particularly strong in the data centre sector, with sales exceeding the previous period.