Fujita Kanko (9722) Q2 2024 earnings summary

Executive summary

• Net sales rose to ¥35,882 million, up ¥6.71 billion year-over-year, driven by robust inbound demand and improved product competitiveness.

• Operating profit surged to ¥5,123 million, a ¥3,211 million increase year-over-year; ordinary profit reached ¥5,615 million.

• Profit attributable to owners of parent was ¥4,004 million, reflecting extraordinary losses on business withdrawal.

• All business segments saw year-over-year net sales growth, with the WHG Business leading gains due to higher ADR and increased inbound guests.

• Structural reforms reduced the ratio of fixed operating costs to net sales to 62.9%, below pre-COVID-19 levels.

Financial highlights

• Net sales: ¥35,882 million, up 23.0% year-over-year.

• Operating profit: ¥5,123 million, up 167.9% year-over-year.

• Ordinary profit: ¥5,615 million, up 124.2% year-over-year.

• Profit attributable to owners of parent: ¥4,004 million, up 30.3% year-over-year.

• EPS: ¥317.56 (up from ¥256.41 year-over-year).

Outlook and guidance

• Full-year net sales forecast revised upward to ¥75,000 million, up ¥2,500 million from previous guidance and 16.2% year-over-year.

• Full-year operating profit forecast raised to ¥11,000 million, up ¥2,500 million from prior forecast and 65.7% year-over-year.

• Profit attributable to owners of parent forecast at ¥8,000 million (1.4% decrease year-over-year); EPS forecast at ¥634.12.

• WHG Business expected to contribute ¥44,700 million in net sales and ¥9,000 million in operating profit for the year.

• Dividend forecast for common shares: ¥30.00 per share (year-end only).