Fujita Kanko (9722) Q4 2024 earnings summary

Executive summary

• Achieved record-high operating and ordinary profit, with net sales up 18.1% year-over-year to ¥76.21 billion, driven by strong inbound demand and improved product competitiveness.

• Operating profit surged 85.5% to ¥12.31 billion, and ordinary profit climbed 78.3% to ¥12.62 billion, both record highs.

• Profit attributable to owners of parent increased 12.6% to ¥9.13 billion, the second-highest on record.

• Structural reforms from the COVID-19 period maintained cost efficiencies, and proactive recruitment and wage increases supported stable human resources.

• Strong performance led to a proposed year-end dividend of ¥40 per common share.

Financial highlights

• Net sales for FY2024 reached ¥76.21 billion, up from ¥64.55 billion year-over-year.

• Operating profit rose to ¥12.31 billion from ¥6.64 billion, and ordinary profit to ¥12.62 billion from ¥7.08 billion year-over-year.

• Profit attributable to owners of parent increased to ¥9.13 billion, up ¥1.02 billion year-over-year.

• Cash flows from operating activities were ¥15.90 billion, with free cash flow at ¥12.07 billion.

• Cash and cash equivalents at year-end were ¥14.45 billion, up ¥770 million from the previous year.

Outlook and guidance

• FY2025 net sales forecasted at ¥78.60 billion (+3.1% YoY), with operating profit expected to decline to ¥12.00 billion due to renovation and expansion costs.

• Profit attributable to owners of parent projected at ¥8.00 billion, down ¥1.13 billion year-over-year.

• Dividend forecast for FY2025 is ¥40 per common share.

• Cost increases in existing businesses to be absorbed by sales growth, but temporary profit decline expected from strategic investments.

• Five-year medium-term plan aims for sustainable growth and enhanced corporate value.