Fukuyama Transporting (9075) Q2 2024 earnings summary

Executive summary

• Q2 FY2024 revenue fell to ¥141,229 million; operating profit, ordinary profit and net income contracted amid lower transport revenue and higher labor and property costs.

• FY2024 guidance calls for revenue of ¥287,200 million and operating profit of ¥11,500 million; January 2024 fare increases are intended to address labor and operating cost pressures.

Financial highlights

• Q2 revenue was ¥141,229 million, 97.2% of prior year; operating expenses rose to ¥134,991 million, 101.0% of prior year.

• Operating profit was ¥6,237 million, 53.4% of prior year; operating margin fell to 4.4% from 8.0%.

• Ordinary profit was ¥7,175 million, 58.1% of prior year; ordinary margin declined to 5.1% from 8.5%.

• Net income attributable to parent shareholders was ¥4,384 million, 54.4% of prior year.

Outlook and guidance

• FY2024 revenue forecast is ¥287,200 million, 97.9% of FY2023; operating profit forecast is ¥11,500 million, 53.8% of prior year, with a 4.0% margin.

• FY2024 ordinary profit forecast is ¥13,000 million, 56.6% of prior year, with a 4.5% margin; net income forecast is ¥8,800 million, 42.3% of prior year.

• From January 2024, filed general freight rates are being raised by an average 10% and parcel rates by an average 6%.