Honyaku Center (2483) Q4 2024 earnings summary

Executive summary

• FY24 revenue rose 3.2% YoY to ¥11,303m; operating profit fell 2.8% to ¥902m as higher SG&A and lower pharmaceutical translation sales weighed on earnings. Net income rose 3.5% to ¥711m, supported by a negative goodwill gain.

• Staffing, interpretation and convention services supported consolidated sales; FY25 guidance calls for 7.0% revenue growth and 16.3% operating-profit growth.

Financial highlights

• FY24 gross profit was ¥5,313m, up 4.4% YoY; gross margin increased 0.6pt to 47.0%.

• SG&A increased 6.0% to ¥4,410m; operating profit was ¥902m, ordinary profit ¥938m and net income ¥711m.

• Quarterly revenue rose ¥91m and quarterly segment profit rose ¥18m in Q4, as indicated in the quarterly trend charts.

Outlook and guidance

• FY25 revenue is forecast at ¥12,100m (+7.0% YoY), operating profit at ¥1,050m (+16.3%), ordinary profit at ¥1,080m (+15.0%) and net income at ¥720m (+1.2%).

• FY25 gross margin is forecast at 47.9%, up 0.9pt; gross profit is projected at ¥5,800m and SG&A at ¥4,750m.

• Fifth Medium-Term Management Plan FY25 targets: revenue ¥12.1bn, operating profit ¥1.05bn, net income ¥720m, operating margin 8.6% and ROE 12.0%.