Daytona (7228) Q3 2024 earnings summary

Executive summary

• Revenue for the nine months ended September 30, 2024, increased by 2.0% year-over-year to ¥10,658 million, while operating profit declined by 7.3% to ¥1,308 million and net profit attributable to shareholders fell by 6.4% to ¥931 million.

• Domestic wholesale sales declined due to weaker demand for touring goods and high-priced items, but sales of riding wear and consumables grew; profit margins were pressured by continued yen depreciation.

• Asian wholesale sales surged 62.9% year-over-year, with segment profit up 72.8%, driven by expanded distribution in Indonesia and the establishment of a new subsidiary in the Philippines.

• Retail sales decreased slightly due to fewer store visitors and weaker demand for high-priced products, but service-related revenue (e.g., inspections, repairs) increased.

• Other businesses, including solar power and reuse sales, saw mixed results, with solar revenue flat and reuse profit up despite lower sales.

Financial highlights

• Gross profit for the period was ¥4,174 million, down from ¥4,195 million year-over-year.

• Comprehensive income was ¥951 million, a 6.8% decrease year-over-year.

• EPS for the period was ¥392.90, down from ¥420.63 in the prior year.

• Total assets increased to ¥11,037 million, and net assets rose to ¥8,339 million, with an equity ratio of 74.7%.

Outlook and guidance

• Full-year revenue is forecast at ¥14,413 million (+3.2% YoY), with operating profit of ¥1,772 million (+4.4%) and net profit of ¥1,214 million (+2.8%).

• No changes to previously announced guidance; domestic wholesale is expected to recover in Q4 due to seasonal demand and new product launches, while Asian wholesale is projected to remain strong.

• Dividend forecast remains unchanged at ¥129 per share for the full year.