ACSL (6232) Q3 2024 earnings summary

Executive summary

• Sales surged to 2.13 bn JPY in FY24 Q3, up 224% YoY, driven by a large India project and strong US orders.

• Net loss attributable to owners of parent was 1,656 mn JPY for the nine months ended September 30, 2024.

• Operating loss widened to -1.52 bn JPY due to increased R&D expenses for SBIR, despite higher sales.

• Comprehensive income for the nine-month period was negative 1,663 mn JPY, compared to negative 1,403 mn JPY in the prior year.

• Overseas expansion accelerated, with major US distributor agreements and a 500-unit SOTEN order from Exertis Almo.

Financial highlights

• Net sales for FY24 Q3 were 2,128 mn JPY, up from 657 mn JPY YoY; backlog at 6.4 bn JPY, up 61%.

• Gross profit improved to 92 mn JPY (4% margin), up from -57 mn JPY (-9%) YoY.

• Operating loss at -1,523 mn JPY, net loss at -1,656 mn JPY, both deteriorated due to SBIR R&D.

• Cash position increased 67% YoY to 1,161 mn JPY; total assets at 4,931 mn JPY (+10% YoY).

• Basic earnings per share for the nine months was negative 111.98 JPY, compared to negative 114.45 JPY in the prior year.

Outlook and guidance

• FY24 sales forecast revised down to 2.9 bn JPY due to delayed US order bookings; backlog supports future growth.

• Gross margin expected to improve to 5% (+2pt vs. previous forecast) despite lower sales.

• Operating loss forecast narrowed to -2.43 bn JPY, aided by cost reductions and delayed SBIR expenses.

• Full-year net loss forecast at 2,060 mn JPY; basic EPS forecast at negative 138.94 JPY.

• Risk of further sales and subsidy recognition delays into next fiscal year due to export and inspection timing.