HIRAYAMA HOLDINGS (7781) Q1 2024 earnings summary

Executive summary

• Q1 FY24 sales rose 10.6% YoY to ¥8,538 million, while operating profit fell 23.2% to ¥218 million amid hiring, training, site and consolidation costs.

• Results were generally in line with plan; the FY24 earnings forecast remains unchanged.

Financial highlights

• Net sales ¥8,538 million, up 10.6% YoY; gross profit ¥1,368.6 million vs. ¥1,321.1 million a year earlier.

• Operating profit ¥218 million, down 23.2% YoY; ordinary profit ¥240 million, down 23.2%, including ¥18 million in foreign exchange gains.

• Profit attributable to owners of parent ¥157.5 million, down 21.3% YoY; EPS ¥21.32 vs. ¥25.86.

Outlook and guidance

• FY24 forecast unchanged: net sales ¥34,300 million, operating profit ¥1,200 million, ordinary profit ¥1,190 million, parent profit ¥700 million and EPS ¥94.28.

• Outlook rests on manufacturing recovery, a large order volume and new graduate placements; hiring and specialized training are planned to expand the workforce available for technical assignments.