Fujita Kanko (9722) Q3 2024 earnings summary

Executive summary

• Net sales rose 18.9% year-over-year to ¥54,178 million for the nine months ended September 30, 2024, driven by strong inbound demand and higher sales per use in accommodation business.

• Operating profit surged 106.7% year-over-year to ¥7,680 million, supported by productivity initiatives and higher ADR.

• Profit attributable to owners of parent grew 16.9% year-over-year to ¥5,412 million, despite extraordinary losses.

• Inbound accommodation guests at domestic facilities increased 26.7% year-over-year, now accounting for 51.6% of total guests.

• Productivity initiatives reduced the ratio of fixed operating costs below pre-COVID-19 levels, supporting profit growth.

Financial highlights

• Net sales: ¥54,178 million, up ¥8,621 million year-over-year.

• Operating profit: ¥7,680 million, up ¥3,964 million year-over-year.

• Ordinary profit: ¥7,862 million, up ¥3,536 million year-over-year.

• Profit attributable to owners of parent: ¥5,412 million, up ¥782 million year-over-year.

• Gross profit increased to ¥10,305 million from ¥5,954 million year-over-year.

Segment performance

• WHG Business: Net sales up ¥6.43 billion and operating profit up ¥3.23 billion year-over-year, with ADR increases offsetting a drop in occupancy rate.

• Luxury & Banquet Business: Net sales up ¥0.36 billion, but operating profit down ¥0.21 billion year-over-year due to higher labor costs.

• Resort Business: Net sales up ¥2.06 billion and operating profit up ¥0.68 billion year-over-year, supported by new hotel openings and higher ADR.