Ifuji Sangyo (2924) Q4 2024 earnings summary

Executive summary

• FY2024 revenue, operating profit, ordinary profit and net income all reached record highs; revenue rose 17.3% YoY to ¥24,503m and net income rose 43.0% to ¥1,597m.

• Earnings benefited from pricing revisions and higher sales; net income also reflected ¥207m in land expropriation compensation and lower tax expense.

Financial highlights

• Operating income increased 12.1% YoY to ¥1,766m; ordinary income rose 12.0% to ¥1,809m.

• Net income attributable to owners rose 43.0% to ¥1,597m; EPS was ¥193.49 versus ¥135.65 in FY2023.

• Gross profit was ¥4,188m versus ¥3,891m; SG&A was ¥2,422m versus ¥2,315m.

• Inventory valuation losses of ¥500m were recorded: ¥151m on raw materials and ¥349m on products, increasing cost of sales.

Outlook and guidance

• FY2025 forecast: revenue ¥20,582m, down 16.0%; operating income ¥1,979m, up 12.1%; ordinary income ¥1,975m, up 9.2%; net income ¥1,367m, down 14.4%.

• FY2025 EPS forecast is ¥165.60; H1 revenue forecast is ¥10,047m, operating income ¥960m, ordinary income ¥959m and net income ¥662m.

• Lower egg-market prices are expected to reduce revenue; priorities include securing egg supplies and product inventory, appropriate pricing, improving factory efficiency and yield, and expanding seasoning sales through new customers and contract manufacturing.