J. Front Retailing (3068) Q4 2024 earnings summary

Executive summary

• FY2024 sales revenue rose 13.2% YoY to ¥407.006bn; business profit increased 78.4% to ¥44.330bn and operating profit rose 125.9% to ¥43.048bn.

• Retail recovery, inbound tourism, fixed-cost reductions and cost savings supported profitability.

• FY2021–FY2023 medium-term plan targets were largely achieved; the FY2024–FY2026 plan focuses on profitable growth, retail synergies and stronger shareholder returns.

Financial highlights

• Gross sales were ¥1,151.972bn, up 15.3% YoY; gross profit was ¥195.516bn, up 15.3%.

• Profit before tax rose 145.0% to ¥41.343bn; attributable profit increased 110.1% to ¥29.913bn, with basic EPS of ¥114.06.

• Operating cash flow was ¥90.692bn; investing cash flow was ¥13.429bn and financing cash flow was -¥72.746bn.

• Annual dividend was ¥36/share, up ¥5 YoY.

Outlook and guidance

• FY2025 forecast: sales revenue ¥421.5bn (+3.6%), business profit ¥44.5bn (+0.4%), operating profit ¥37.5bn (-12.9%) and attributable profit ¥23.5bn (-21.4%).

• FY2025 annual dividend is planned at ¥40/share; payout ratio target is at least 40%.

• FY2026 targets include business profit of ¥52.0bn, ROE of at least 8.0% and ROIC of at least 5.0%; long-term ROE target is at least 10%.

• FY2024–FY2026 cash allocation includes ¥220bn operating cash flow, ¥125bn for business evolution and maintenance, up to ¥50bn growth investment and at least ¥45bn shareholder returns.