Fujita Kanko (9722) investor relations material

Executive summary

• Net sales increased by 2.0% year-over-year to ¥40,755 million, despite temporary guestroom closures for renovations.

• Operating profit declined by ¥606 million year-over-year to ¥6,270 million, mainly due to increased costs and one-time investments in renovations.

• Ordinary profit decreased 10.7% year-over-year to ¥6,072 million.

• Profit attributable to owners of parent surged 77.4% year-over-year to ¥8,015 million, driven by extraordinary gains.

• Comprehensive income increased to ¥7,023 million, up 41.3% year-over-year.

Financial highlights

• Net sales: ¥40,755 million (up 2.0% year-over-year).

• Operating profit: ¥6,270 million (down 8.8% year-over-year).

• Ordinary profit: ¥6,072 million (down 10.7% year-over-year).

• Extraordinary income: ¥5,999 million from the sale of investment securities.

• Profit attributable to owners of parent: ¥8,015 million (up 77.4% year-over-year).

Outlook and guidance

• Full-year net sales forecast revised upward to ¥84,000 million, up 2.4% year-over-year.

• Operating profit forecast raised to ¥13,200 million.

• Profit attributable to owners of parent forecast increased to ¥12,500 million, up 34.5% year-over-year.

• Basic earnings per share for the full year is forecast at ¥208.60.

• Growth expected from continued inbound demand and higher ADR, with further expansion of WHG Hotels planned.