Daytona (7228) Q4 2023 earnings summary

Executive summary

• FY2023 revenue fell 4.3% YoY to ¥13,961m and operating income declined 17.4% to ¥1,698m; Q4 revenue recovered to near prior-year levels.

• FY2024 guidance calls for revenue of ¥14,413m and operating income of ¥1,772m, with stronger performance expected in H2; planned dividend rises to ¥129 per share.

Financial highlights

• FY2023 gross profit was ¥5,452m, down 6.9% YoY; SG&A was ¥3,753m, down 1.2%.

• Net income attributable to owners was ¥1,181m, down 17.6% YoY; EPS was ¥499.15, versus ¥608.22 in FY2022.

• Q4 FY2023 revenue was ¥3,515m, near the prior-year ¥3,530m; operating income was ¥285m, down 15% YoY.

Outlook and guidance

• FY2024 forecast: revenue ¥14,413m (+3.2%), gross profit ¥5,750m (+5.5%), operating income ¥1,772m (+4.4%), ordinary income ¥1,784m (+2.0%), and net income ¥1,214m (+2.8%).

• H1 is expected to decline on post-pandemic demand normalization and yen-driven procurement costs; H2 growth is expected from easing comparisons, repriced products, and new launches.

• FY2024 EPS is forecast at ¥512.68 and dividend at ¥129 per share, up ¥8 YoY.

• Medium-term targets for FY2026 are revenue of ¥17,000m and operating income of ¥2,050m, with operating margin maintained in the 12% range.