Hoshizaki (6465) Q3 2024 earnings summary

Executive summary

• Achieved record high sales and operating income in 3Q FY2024, driven by strong capital investment demand in Japan and contributions from three newly consolidated overseas companies, especially in India.

• Net sales for the nine months ended September 30, 2024, rose 17.4% year-over-year to ¥331,263 million.

• Operating profit increased 20.7% year-over-year to ¥42,934 million.

• Profit attributable to owners of parent grew 1.9% year-over-year to ¥30,589 million.

• Revised full-year earnings forecast upward, reflecting strong performance and favorable foreign exchange rates.

Financial highlights

• Sales reached ¥331.3 billion, up 17.4% year-on-year; overseas sales grew 29.1%, with a 49.3% overseas sales ratio.

• Operating income rose 20.7% to ¥42.9 billion, with a margin of 13.0% (up 0.4pt); ordinary income increased 9.6% to ¥47.5 billion.

• Profit attributable to owners of parent was ¥30.6 billion, up 1.9% year-on-year.

• Gross profit margin improved to 38.4% from 36.7% year-on-year.

• Diluted earnings per share for the period were ¥212.21, compared to ¥207.20 a year earlier.

Outlook and guidance

• FY2024 sales forecast revised to ¥430 billion (up from ¥410 billion), operating income to ¥48.5 billion, and profit attributable to owners of parent to ¥34 billion.

• Full-year net sales forecast is ¥430,000 million, up 15.1% year-over-year.

• Operating profit for the full year is projected at ¥48,500 million, up 11.4% year-over-year.

• Profit attributable to owners of parent is forecast at ¥34,000 million, a 3.5% increase year-over-year.

• Dividend forecast revised to ¥95.00 per share for the year ending December 31, 2024.