Glory (6457) Q2 2024 earnings summary

Executive summary

• Net sales for the six months ended September 30, 2024, reached ¥185,098 million, up 17.3% year-over-year, driven by strong overseas demand, self-service products, and hardware replacements related to new Japanese banknote issuance.

• Operating income rose 14.4% to ¥19,143 million, but net income attributable to owners of parent declined 11.2% to ¥7,381 million due to higher interest payments, FX losses, and extraordinary costs.

• Achieved record-high sales in the first half, with significant contributions from large overseas orders, especially in Europe and retail, and synergies from recent acquisitions.

Financial highlights

• EBITDA increased 16.4% year-over-year to ¥30,980 million.

• Maintenance and services revenue grew 8.2% to ¥68.5 billion.

• Gross profit for the period was ¥78,426 million, up from ¥69,126 million year-over-year.

• Free cash flow improved to ¥3.9 billion from negative ¥4.2 billion a year earlier.

• Capital expenditures for the period were ¥5.6 billion, up 7.1% year-over-year.

Outlook and guidance

• Full-year sales forecast revised upward to ¥362.0 billion, with operating income projected at ¥30.0 billion and net income at ¥13.0 billion.

• Profitability expected to decline in the second half as new banknote-related demand wanes.

• Overseas market sales and demand for self-service solutions expected to remain robust, with improved profitability in the Americas due to internalization of maintenance business.

• Exchange rate assumptions updated to US$1 = ¥145 and €1 = ¥160.