Renesas Electronics Corporation has announced its consolidated financial results for the year ending December 31, 2024. The company reported a revenue of 1,348.5 billion yen, marking an 8.2% decrease from the previous year.
The decline in revenue was primarily attributed to a downturn in the Industrial, Infrastructure, and IoT sectors, driven by weakening demand. Despite this, the Automotive Business segment experienced growth, benefiting from yen depreciation and channel inventory expansion.
Gross profit for the year stood at 749.8 billion yen, a decrease from the prior year. This reduction was due to lower revenue, decreased factory utilization, and a less favorable product mix. Additionally, increased research and development expenses contributed to a decline in operating profit, which fell by 167.8 billion yen to 223.0 billion yen. Consequently, profit attributable to owners of the parent company decreased by 118.0 billion yen, totaling 219.1 billion yen for the year.
In the fourth quarter of 2024, Renesas reported revenue of 292.6 billion yen. The company achieved a non-GAAP gross margin of 54.9% and a non-GAAP operating margin of 25.8% during this period.
Looking ahead, Renesas has provided consolidated forecasts for the first quarter of 2025. The company anticipates non-GAAP revenue to range between 301.5 billion yen and 316.5 billion yen. The non-GAAP gross margin is projected at 54.0%, with a non-GAAP operating margin of 24.0%.
Renesas continues to navigate the challenges posed by fluctuating market demands, focusing on its core strengths in the semiconductor industry to drive future growth.
Original – Renesas Electronics