DIC (4631) Q3 2024 earnings summary

Executive summary

• Net sales for the first nine months of FY2024 reached ¥807.7 billion, up 3.3% year-over-year, with operating income surging 158.5% to ¥34.0 billion and net income attributable to owners at ¥10.6 billion, reversing a prior-year loss.

• EBITDA rose 31.9% to ¥65.1 billion, reflecting improved product mix, cost reductions, and stable sales prices overseas.

• The Color & Display segment returned to profitability due to structural reforms and cost reductions.

• Extraordinary gains from asset and IP sales offset higher extraordinary losses from divestitures and restructuring.

Financial highlights

• Net sales: ¥807.7 billion (+3.3% YoY); Operating income: ¥34.0 billion (+158.5% YoY); Operating margin: 4.2% (up from 1.7%).

• Net income attributable to owners: ¥10.6 billion, a turnaround from a loss in the prior year.

• EBITDA rose 31.9% to ¥65.1 billion.

• Free cash flow improved to ¥10.9 billion from negative ¥19.8 billion.

• Gross profit improved to ¥169.99 billion from ¥141.64 billion, with gross margin rising due to lower cost of sales.

Outlook and guidance

• FY2024 full-year forecasts remain unchanged: net sales ¥1,100.0 billion (+5.9%), operating income ¥40.0 billion (+122.9%), net income ¥16.0 billion.

• Annual dividend forecast raised to ¥100 per share.

• Exchange rate assumptions revised, but no change to sales or income guidance.

• Earnings per share for the year forecast at ¥168.99.