HIRAYAMA HOLDINGS (7781) Q3 2024 earnings summary

Executive summary

• 9M FY6/24 net sales rose 11.7% YoY to ¥26,264 million; operating profit increased 9.1% to ¥855 million and profit attributable to owners of parent rose 15.1% to ¥583 million.

• Higher sales and earnings reflected stronger demand and manufacturing recovery; strategic recruiting, training, expansion and consolidation costs weighed on profitability in in-sourcing and temp staffing.

Financial highlights

• 9M net sales were ¥26,264 million, up 11.7% YoY; gross profit was ¥4,426 million versus ¥4,057 million, and SG&A was ¥3,571 million versus ¥3,273 million.

• Operating profit rose 9.1% YoY to ¥855 million; ordinary profit increased 8.7% to ¥896 million, including ¥25 million of foreign-exchange gains.

• Profit attributable to owners of parent increased 15.1% to ¥583 million; basic EPS was ¥79.02 versus ¥69.24 a year earlier.

• Comprehensive income was ¥584 million versus ¥499 million; income taxes totaled ¥314 million versus ¥313 million.

Outlook and guidance

• FY6/24 forecasts unchanged: net sales ¥34,300 million (+8.3% YoY), operating profit ¥1,200 million (+34.3%), ordinary profit ¥1,190 million (+25.5%), and parent-attributable profit ¥700 million (+27.5%).

• Full-year EPS forecast is ¥94.28; no revision to the earnings forecast announced Aug. 14, 2023.

• Stronger Japanese manufacturing output and continued recruitment and skills training are expected to support orders and placements in technical roles.