Hoshizaki (6465) Q2 2024 earnings summary

Executive summary

• Achieved record sales and operating income in Japan, driven by robust capital investment demand and recovery in inbound tourism; overseas sales and income also increased, especially in Asia and India, despite inflation in Turkey.

• Net sales rose 18.7% year-over-year to ¥218.1 billion, with operating profit up 19.7% to ¥27.4 billion and ordinary profit up 12.2% to ¥32.2 billion.

• Profit attributable to owners of parent declined 2.0% year-over-year to ¥19.5 billion, mainly due to a ¥2.5 billion loss on step acquisitions.

• Comprehensive income increased 36.8% year-over-year to ¥51.8 billion, reflecting strong foreign currency translation adjustments.

Financial highlights

• Consolidated sales reached ¥218.1 billion, up 18.7% year-over-year; Japan sales ¥110.6 billion (+9.1%), overseas ¥107.4 billion (+30.4%).

• Operating income rose 19.7% to ¥27.4 billion; margin improved to 12.6%.

• Ordinary income increased 12.2% to ¥32.2 billion, with ¥2.3 billion in foreign exchange gains.

• Gross profit margin improved to 38.2% from 37.0% year-over-year.

• EPS for the period was ¥134.78, slightly down from ¥137.34 year-over-year.

Outlook and guidance

• Full-year sales forecast at ¥410 billion (+9.8% year-over-year); Japan ¥210 billion (+4.0%), overseas ¥200 billion (+16.6%).

• Operating income projected at ¥44 billion (+1.1%), ordinary income ¥46 billion (-8.6%), and profit attributable to owners of parent ¥33 billion (-0.5%).

• No revisions to full-year guidance; expects stable economic growth overseas and continued strategic expansion in Japan.