Crops Corporation (9428) Q2 2024 earnings summary

Executive summary

• FY23 H1 consolidated revenue reached a record ¥25,955m, up 15% YoY; operating profit declined 12% to ¥1,075m.

• Consolidated and mobile communications results were broadly on plan; consolidated operating profit was ¥95m ahead of the H1 plan.

Financial highlights

• H1 ordinary profit was ¥1,211m, down 6% YoY; net income was ¥601m, down 5%.

• H1 revenue increased 21% YoY to ¥10,541m in mobile communications, while segment operating profit fell 55% to ¥169m.

• Revenue growth reflected store leasing, mobile communications, and other businesses; consolidated revenue growth was 15% YoY.

Outlook and guidance

• FY23 revenue is forecast at ¥51,868m, up 7.2%; operating profit at ¥2,202m, down 3.1%; ordinary profit at ¥2,456m, up 1.0%; net income at ¥1,027m, down 12.6%.

• Mobile communications operating profit is forecast to fall ¥199m to ¥346m as lower sales volume and weaker demand reduce gross profit per store; other segments expect demand recovery.

• Forecasts rely on available information and assumptions; actual results may differ materially due to various factors.