Canon Marketing Japan (8060) Q2 2024 earnings summary

Executive summary

• Net sales and net income increased year-over-year, with IT Solutions and the Enterprise segment driving growth; net income reached record highs for both Q2 and the first half.

• Net sales for the six months ended June 30, 2024, rose 5.3% year-over-year to ¥318,903 million, with net income attributable to owners up 8.0% to ¥20,147 million.

• Operating income declined 3.9% year-over-year to ¥26,033 million, while comprehensive income increased 1.6% to ¥20,483 million.

• The net sales forecast for FY2024 was revised upward by ¥5 billion, aiming to achieve the 2025 sales target a year early.

• A tender offer for 22 million own shares (16.78% of issued shares) was resolved, with plans to cancel most of the acquired shares.

Financial highlights

• 2Q FY2024 net sales: ¥161.7B (+9% YoY); operating income: ¥12.2B (+4% YoY); net income: ¥10.6B (+29% YoY).

• 1H FY2024 net sales: ¥318.9B (+5% YoY); operating income: ¥26.0B (-4% YoY); net income: ¥20.1B (+8% YoY).

• Gross profit increased to ¥103,426 million from ¥101,988 million year-over-year.

• Basic earnings per share rose to ¥155.36 from ¥143.91 year-over-year.

• Shareholders’ equity increased to ¥446,931 million, with an equity ratio of 77.5%.

Outlook and guidance

• FY2024 net sales forecast raised to ¥650B (+1% vs previous forecast, +7% YoY).

• Operating income forecast unchanged at ¥54B (+3% YoY); net income forecast at ¥37.5B (+3% YoY); ordinary income at ¥55B (+2.6% YoY).

• Enterprise segment forecast raised by ¥5B in net sales due to strong IT Solutions.

• Annual dividend forecast raised to ¥120 per share, unchanged YoY.