Glory (6457) Q3 2024 earnings summary

Executive summary

• Achieved record-high nine-month sales of ¥280 billion, up 7.8% year-over-year, driven by strong overseas and retail/transportation market growth and demand for self-service products.

• Operating income declined by 17.0% year-over-year to ¥29.3 billion due to reduced high-margin system modifications in Japan and increased costs.

• Net income attributable to owners of parent fell by 39.8% to ¥12.5 billion, impacted by higher interest payments, FX losses, and a rebound in domestic financial market sales.

• Revised full-year sales and operating income forecasts upward, reflecting robust overseas demand and improving profitability.

Financial highlights

• Net sales for the nine months ended December 31, 2024: ¥280.0 billion (+7.8% YoY); gross profit increased to ¥118.9 billion.

• Operating income: ¥29.3 billion (-17.0% YoY); before goodwill amortization: ¥35.7 billion.

• Ordinary income: ¥22.4 billion (-33.5% YoY); Net income attributable to owners of parent: ¥12.5 billion (-40.2% YoY); net income per share: ¥225.49.

• EBITDA: ¥47.1 billion (-6.7% YoY).

• Ownership equity ratio improved to 52.4% from 48.5% at the previous fiscal year-end.

Outlook and guidance

• Full-year forecast revised upward: net sales expected at ¥370 billion (+¥8.0 billion vs. previous forecast), operating income at ¥32.0 billion, and net income attributable to owners of parent at ¥13.5 billion.

• Exchange rate assumptions updated to US$1 = ¥153 and €1 = ¥160.

• Overseas market sales expected to continue growing, especially in retail and food & beverage sectors.

• Temporary sales decline in Japan's financial market expected in FY2025, with recovery above historical average projected for FY2026.

• Demand for self-service and labor-saving products expected to remain strong domestically and internationally.