Bell-Park (9441) Q2 2024 earnings summary

Executive summary

• Net sales/revenue for 1H 2024 were ¥57,127 million, down 1.2% year-over-year, mainly due to a decrease in unit sales price despite increased contract volume.

• Operating income/profit rose 10.4% to ¥2,710 million, and profit attributable to owners/shareholders increased 16.9% to ¥1,999 million.

• Growth in operating income and profit was driven by higher gross profit and increased consistent/recurring revenue, despite a decline in net sales.

• SG&A expenses increased, mainly from higher personnel and sales promotion costs.

• The company continued to optimize store operations and expand corporate solutions, despite a challenging regulatory and competitive environment.

Financial highlights

• Gross profit for 1H 2024 reached ¥13,748 million, up from ¥12,925 million in 1H 2023.

• Operating income margin improved to 4.7% from 4.2% year-over-year.

• Ordinary profit was ¥2,763 million, up 11.3% year-over-year.

• EPS was ¥103.93, up from ¥88.87 the previous year.

• Cash and cash equivalents at period end were ¥21,668 million, up from ¥19,722 million at the start.

Outlook and guidance

• 1H 2024 operating income and profit attributable to owners achieved 74.3% and 80.0% of full-year forecasts, respectively.

• Full-year 2024 forecasts: net sales/revenue ¥110,000 million, operating income ¥3,650 million, profit ¥2,500 million.

• Dividend payout ratio policy maintained at 30% or higher, with annual dividend forecast raised to ¥44 per share.

• No changes to previously announced guidance.