Glory (6457) Q1 2024 earnings summary

Executive summary

• Net sales for Q1 FY2024 reached ¥92.775 billion, up 33.2% year-over-year, driven by machine replacements, system modifications for new Japanese banknote issuance, and robust overseas retail and F&B demand.

• Operating income rose to ¥10.557 billion, a 156.1% increase year-over-year, with EBITDA at ¥16.589 billion (+85.9%).

• Net income attributable to owners of parent was ¥5.743 billion, up 186.4% year-over-year.

• Major orders secured from U.S., Italian, and Mexican retailers supported global expansion.

• The 2026 Medium-Term Management Plan was launched, focusing on digital transformation and operational efficiency.

Financial highlights

• Gross profit increased to ¥40.086 billion from ¥29.681 billion year-over-year.

• Maintenance service sales increased by ¥6.8 billion (+23.9% YoY).

• Cost of sales ratio improved to 56.7%, while SG&A expenses rose due to higher overseas costs.

• Extraordinary loss of ¥0.6 billion recorded in Q1.

• Net income per share was ¥103.14, compared to ¥36.07 in the prior year.

Outlook and guidance

• Full-year FY2024 net sales forecast revised upward to ¥346.0 billion (+¥16.0 billion from previous forecast), with operating income forecast at ¥26.5 billion (+¥4.5 billion from previous forecast).

• Net income attributable to owners of parent is forecast at ¥11.5 billion (up 61.2%).

• Dividend forecast for FY2024/FY2025 is ¥108 per share, up from ¥106 in the previous year.

• Upward revision reflects higher-than-expected demand for machine replacements and self-service solutions.

• Demand from new banknote issuance expected to peak by December 2024; self-service demand remains steady.