AINAVO HOLDINGS (7539) Q4 2023 earnings summary

Executive summary

• FY ended Sep. 2023 revenue rose 8.8% YoY to ¥86,085 million, while operating profit fell 6.8% to ¥1,770 million and net income fell 22.7% to ¥1,274 million.

• Tile sales recovery, greater exterior-tile construction demand and increased orders for sash and siding work supported revenue growth; lower gross margin and higher personnel and logistics costs weighed on profit.

Financial highlights

• Revenue increased ¥6,942 million YoY to ¥86,085 million; gross profit rose 5.8% to ¥11,909 million, while SG&A increased 8.3% to ¥10,139 million.

• Operating profit was ¥1,770 million, down 6.8%; ordinary profit was ¥2,068 million, down 4.6%; net income was ¥1,274 million, down 22.7%.

• Gross profit margin declined to 13.8% from 14.2%; the operating-profit bridge cited a 0.5-point gross-margin decline and higher SG&A costs.

Outlook and guidance

• FY ending Sep. 2024 guidance: revenue ¥92,000 million (+6.9%), operating profit ¥2,100 million (+18.6%), ordinary profit ¥2,300 million (+11.2%) and net income ¥1,450 million (+13.8%).

• Forecast operating, ordinary and net margins are 2.3%, 2.5% and 1.6%, respectively, versus 2.1%, 2.4% and 1.5% in FY2023.

• FY2024 targets include siding sales of ¥5,300 million, precut siding of 1,000 cases, sash sales of ¥3,500 million, non-residential sales of ¥5,500 million and condominium-plus-detached sales of ¥4,500 million.

• Brand and customer-development targets: Maristo sales ¥1,400 million, Altis sales ¥442 million, 760 new-customer cases and tile/system-bath sales of ¥2,700 million.