Infomart (2492) Q4 2023 earnings summary

Executive summary

• FY2023 net sales rose 21.4% YoY to ¥13,363 million and operating profit increased 57.8% to ¥830 million; both exceeded plan.

• BtoB Platform usage continued expanding: user companies surpassed 1 million and 2023 distribution value exceeded ¥44 trillion.

Financial highlights

• Gross profit was ¥7,585 million, up 21.1% YoY; gross margin was 56.8%, versus 56.9% in FY2022.

• Ordinary profit rose 35.9% YoY to ¥632 million; profit attributable to owners of parent increased 4.2% to ¥298 million.

• Actual net sales exceeded plan by 1.8% and operating profit by 29.7%; profit attributable to owners of parent was 16.2% below plan.

• Q4 net sales were ¥3,649 million, up 24.3% YoY; quarterly operating profit was ¥196 million.

Outlook and guidance

• FY2024 plan: net sales ¥16,086 million (+20.4% YoY), operating profit ¥1,000 million (+20.4%), ordinary profit ¥780 million (+23.5%) and attributable profit ¥539 million (+80.6%).

• FY2024 segment sales plan: FOOD ¥9,767 million (+15.6% YoY) and ES ¥6,318 million (+28.5%); an August 2024 Ordering fee revision is expected to support FOOD growth.

• FY2024 gross margin is forecast at 60.1%; higher sales are expected to offset increased costs, including referral fees, personnel, branding commissions and sales promotion.

• FY2026 targets: net sales ¥20 billion, operating profit ¥5 billion and 25% operating margin; stated average three-year sales CAGR target is 16%.