Central Glass (4044) Q4 2023 earnings summary

Executive summary

• FY2023 net sales were ¥160.3bn, operating profit ¥14.5bn and ordinary profit ¥16.3bn; sales and operating profit declined YoY, while results exceeded the November forecast on profit.

• FY2024 guidance projects lower sales and profits, with Glass sales growth offset by a forecast decline in Chemicals sales and operating profit.

Financial highlights

• FY2023 net sales fell 5.3% YoY to ¥160.3bn; operating profit fell 13.3% to ¥14.5bn and ordinary profit fell 17.1% to ¥16.3bn.

• Profit attributable to owners of parent was ¥12.5bn versus ¥42.5bn in FY2022; FY2023 EPS was ¥504 versus ¥1,222.

• FY2023 results beat the November forecast by ¥3.5bn in operating profit, ¥4.3bn in ordinary profit and ¥2.5bn in parent-attributable profit; net sales were ¥1.2bn below forecast.

Outlook and guidance

• FY2024 forecast: net sales ¥156.0bn, operating profit ¥11.0bn, ordinary profit ¥12.5bn and parent-attributable profit ¥10.0bn.

• FY2024 operating margin is forecast at 7.1% versus 9.1% in FY2023; parent-attributable profit ratio is forecast at 6.4% versus 7.8%.

• Forecast assumptions include ¥145/US$ exchange rate and crude oil at $79.0/bbl CIF, versus ¥141/US$ and $85.5/bbl in FY2023.

• FY2024 net sales forecast: Glass ¥62.5bn, up ¥3.1bn; Chemicals ¥93.5bn, down ¥7.4bn, including a ¥11.4bn decline in Energy Materials.