Canare Electric (5819) Q2 2024 earnings summary

Executive summary

• Revenue increased 2.4% year-over-year to ¥6,028 million for the first half of FY2024, driven by domestic and overseas sales growth, though profit margins declined due to higher SG&A and investments in human capital.

• Operating income fell 3.2% year-over-year to ¥642 million, and net income attributable to shareholders decreased 3.1% to ¥502 million.

• Overseas sales accounted for 49.9% of total revenue, with notable contributions from the US and Asia, though some regions experienced declines.

Financial highlights

• Gross profit rose to ¥2,519 million (up from ¥2,419 million), but operating profit declined due to increased SG&A expenses.

• Ordinary income remained flat at ¥719 million, while net income attributable to shareholders was ¥502 million (down from ¥518 million year-over-year).

• Total assets increased to ¥19,376 million, and equity ratio improved to 91.6%.

• Interim dividend raised to ¥28 per share, with full-year forecast unchanged at ¥62 per share.

Outlook and guidance

• Full-year revenue forecast is ¥12,845 million (down 0.2% year-over-year), with operating income projected at ¥1,330 million (down 20.3%) and net income at ¥980 million (down 17.5%).

• No changes to previously announced guidance; management notes risks from market volatility and inflation.