BML (4694) Q2 2024 earnings summary

Executive summary

• Net sales and profit increased year-over-year in the first half of FY2024, with net sales rising 1.8% to ¥71,373 million and profit attributable to owners of parent up 2.1% to ¥3,426 million, despite a decline in COVID-19-related testing revenue.

• Growth was driven by solid non-COVID-19 testing volumes and initiatives to improve profitability, especially in clinical testing and food hygiene, while medical informatics and other businesses saw declines.

• The company resumed sales of Qualis Cloud after reinforcing support and cloud infrastructure.

Financial highlights

• Net sales rose 1.8% year-over-year to ¥71,373 million in 1H FY2024.

• Operating profit increased 0.9% to ¥5,170 million; ordinary profit up 1.6% to ¥5,359 million; profit attributable to owners of parent grew 2.1% to ¥3,426 million.

• Gross profit increased slightly to ¥23,700 million from ¥23,601 million year-over-year.

• Basic earnings per share increased to ¥87.89 from ¥86.08 year-over-year.

• Cash and cash equivalents at period end decreased by ¥17,298 million year-over-year, mainly due to higher investing activities.

Outlook and guidance

• FY2024 full-year net sales forecast at ¥140,000 million, up 1.5% year-over-year; operating profit projected at ¥9,200 million, up 0.4%; profit attributable to owners of parent at ¥6,100 million, up 1.1%.

• Dividend forecast for FY2024 is ¥120 per share, up from ¥80 in FY2023.

• Progress is generally on track with initial plans.