ASKUL (2678) Q4 2024 earnings summary

Executive summary

• Achieved record-high net sales and profit at every stage for FY5/2024, with net sales up 5.6% YoY to ¥471.7 billion and operating profit up 16.0% to ¥16.95 billion, surpassing revised plans.

• Profit attributable to owners surged 95.6% YoY to ¥19.14 billion, driven by extraordinary income from a lawsuit settlement.

• B-to-B business shifted to a higher profit growth trajectory, while B-to-C business declined as planned but LOHACO remained profitable for the full year.

• FY5/2025 targets further record-high net sales and operating profit, focusing on absorbing increased fixed costs and leveraging data-driven strategies.

• New medium-term management plan to be announced in FY5/2025, aiming for transformation into an infrastructure company and up to ¥100 billion in growth investments.

Financial highlights

• FY5/2024 net sales: ¥471.7 billion (+5.6% YoY); operating profit: ¥16.95 billion (+16.0% YoY); profit attributable to owners: ¥19.14 billion (+95.6% YoY, includes extraordinary income).

• Gross profit: ¥117.5 billion (+9.8% YoY); gross margin: 24.9% (+0.9pt YoY), improved by higher sales of Living Supplies and price revisions.

• SG&A expenses: ¥100.5 billion (+8.8% YoY), ratio to sales: 21.3%.

• EBITDA increased significantly, reflecting strong earnings growth.

• Basic EPS: ¥196.47 (vs. ¥100.43 prior year); extraordinary income of ¥11.86 billion recorded as compensation for damages.

Outlook and guidance

• FY5/2025 net sales forecast: ¥500.0 billion (+6.0% YoY); operating profit: ¥18.0 billion (+6.2% YoY); ordinary profit: ¥17.7 billion (+6.1% YoY); profit attributable to owners forecasted at ¥11.2 billion, reflecting absence of prior year’s extraordinary income.

• Gross profit expected to rise to ¥126.7 billion (+7.8% YoY); SG&A to ¥108.7 billion (+8.1% YoY).

• E-commerce business expected to grow 6.1% in sales and 4.3% in operating profit; logistics and other segments to return to profitability.

• Capital expenditures planned at ¥18.0 billion, mainly for ASKUL Kanto DC and core system replacement.

• New medium-term management plan to focus on digital transformation, logistics efficiency, and aggressive M&A.