BML (4694) Q4 2024 earnings summary

Executive summary

• Achieved growth in net sales and profit for FY2024 despite a decline in COVID-19-related testing revenue, with net sales rising 3.8% to ¥143,191 million and profit attributable to owners of parent up 3.8% to ¥6,263 million, driven by solid non-COVID-19 testing demand and profitability initiatives.

• Net sales excluding COVID-19 testing grew 5.8% year-over-year, reflecting steady core business performance.

• The clinical testing business grew 3.5% year-over-year, food hygiene business increased 5.5%, and medical informatics business surged 12.4%, while other businesses declined 7.6%.

• Progress made on the Ninth Medium-Term Management Plan, focusing on stable sales growth, profitability, and shareholder returns.

Financial highlights

• FY2024 net sales rose to ¥143,191 million, up 3.8% year-over-year; operating profit increased 2.1% to ¥9,364 million; EBITDA grew 7.3% to ¥16,892 million; profit attributable to owners of parent increased 3.8% to ¥6,263 million.

• Total assets increased to ¥177,507 million, up ¥6,515 million from the previous year; net assets rose to ¥133,772 million, with an equity ratio of 72.9%.

• Cash flows from operating activities increased by ¥1,362 million to ¥15,809 million; cash and cash equivalents at period end were ¥63,928 million.

• Basic earnings per share was ¥160.62, and net assets per share reached ¥3,316.84.

• Dividend per share for FY2024 was ¥120.00, including a ¥20.00 commemorative dividend.

Outlook and guidance

• FY2025 net sales forecasted at ¥148,000 million, up 3.4% year-over-year; EBITDA expected to rise to ¥18,000 million.

• Operating profit and net profit are projected to decrease due to higher depreciation from new building investments, with operating profit forecast at ¥9,000 million (−3.9%) and profit attributable to owners of parent at ¥6,000 million (−4.2%).

• Annual dividend for FY2025 projected at ¥120 per share, including a commemorative dividend, with a payout ratio of 74.7% and a forecasted 78.0%.

• The business environment remains uncertain due to geopolitical risks, persistent high raw material and energy costs, and regulatory changes in medical service fees.

• The company will focus on profitability, operational efficiency, and infrastructure upgrades under its Ninth Medium-Term Management Plan.