AINAVO HOLDINGS (7539) Q3 2024 earnings summary

Executive summary

• Revenue increased by 4.2% year-over-year to ¥67,146 million, driven by growth in both core business segments and recovery in private renovation projects post-pandemic.

• Net income attributable to shareholders declined by 9.9% year-over-year to ¥1,003 million, impacted by higher selling, general and administrative expenses and a one-time merger loss.

• Operating profit decreased 1.8% year-over-year to ¥1,620 million due to higher personnel and SG&A expenses despite higher gross profit.

Financial highlights

• Gross profit rose 5.1% year-over-year to ¥9,533 million, with gross margin stable at 14.2%.

• Operating margin compressed to 2.4% due to increased SG&A costs.

• Comprehensive income decreased 14.3% year-over-year to ¥1,084 million.

• EPS for the period was ¥86.76, down from ¥96.25 in the prior year.

• Total assets at June 30, 2024, were ¥44,178 million, with net assets at ¥24,649 million and an equity ratio of 55.8%.

Outlook and guidance

• Full-year revenue forecast remains unchanged at ¥92,000 million, up 6.9% year-over-year.

• Operating profit is projected at ¥2,100 million (+18.6%), and net income at ¥1,450 million (+13.8%) for the full year.

• EPS guidance for the year is ¥125.37.