Daitron (7609) Q4 2024 earnings summary

Executive summary

• Achieved record net sales of ¥93,542 million in FY2024, up 1.5% year-over-year, with net income rising 9.1% to ¥4,382 million.

• Operating profit reached ¥6,335 million (+5.3%), ordinary profit ¥6,335 million (+5.3%), and gross profit margin improved to 20.2%.

• Overseas sales ratio increased to 26.3%, with notable growth in North America and Asia.

• Launched the 11M Medium-Term Business Plan, targeting sustained growth and global expansion.

• Focused on expanding original products, overseas business, and new business foundations.

Financial highlights

• Net assets increased to ¥33,003 million, with an equity ratio of 45.1%.

• Dividend payout ratio raised to 39.3%, with annual dividend of ¥155 per share.

• Cash and equivalents at year-end were ¥19,541 million, up ¥8,316 million from the previous year.

• Gross profit reached ¥18,868 million, with a gross margin of 20.2%.

• Operating margin improved to 6.6% from 6.4% year-over-year.

Outlook and guidance

• FY2025 forecast: net sales of ¥95,000 million (+1.6% y/y), operating income of ¥6,350 million (+2.4% y/y), net income of ¥4,400 million (+0.4% y/y).

• Medium-term plan targets net sales of ¥100 billion and gross profit margin of 20% or above.

• The company expects continued uncertainty due to geopolitical risks, resource prices, and global economic conditions.

• Focus on expanding overseas business, original products, and new business creation.