ERI Holdings (6083) Q2 2024 earnings summary

Executive summary

• H1 FY5/2024 net sales rose 3.2% YoY to ¥8,661 million, while operating profit fell 21.4% to ¥835 million.

• Weaker housing and non-housing starts reduced applications in core Building Confirmation and Inspection services; Q2 performance was within expectations.

Financial highlights

• Gross profit declined to ¥2,911 million from ¥3,041 million as cost of sales increased to ¥5,749 million from ¥5,349 million.

• Ordinary profit fell 21.1% to ¥843 million; profit attributable to owners fell 21.6% to ¥506 million.

• Basic EPS was ¥65.60 versus ¥82.84; comprehensive income was ¥510 million, down 21.4% YoY.

• Operating and ordinary profit ratios were 9.6% and 9.7%, respectively, down from 12.7% for each a year earlier.

Outlook and guidance

• FY5/2024 forecast remained unchanged: net sales ¥18,500 million (+6.3%), operating profit ¥2,400 million (+3.2%), and ordinary profit ¥2,400 million (+2.6%).

• Forecast parent-attributable profit was ¥1,540 million (+0.4%) and EPS was ¥199.64; the annual dividend forecast remained ¥60 per share, including a ¥30 interim payment.