JINS HOLDINGS (3046) Q4 2024 earnings summary

Executive summary

• Achieved record sales and profits in FY08/24, driven by strong domestic operations, new store openings, and product innovation.

• Domestic comparable store sales grew 12.6% YoY, with robust e-commerce and store performance.

• Overseas profit declined YoY due to macroeconomic factors, but performance exceeded revised plans; structural reforms initiated in China and Hong Kong.

• Increased year-end dividend in line with a 30% payout policy, reflecting higher earnings.

• Domestic eyewear business led growth, while overseas segment saw modest sales gains but a sharp drop in segment profit.

Financial highlights

• FY08/24 sales reached ¥82.99bn (+13.3% YoY), operating profit ¥7.83bn (+61.7% YoY), and EBITDA ¥10.86bn (+37.1% YoY), all record highs.

• Net income attributable to owners was ¥4.67bn (+165.1% YoY), with a net income ratio of 5.6% (+3.2pt YoY).

• Gross profit margin improved to 77.6% (+0.8pt YoY), with gross profit at ¥64.44bn.

• Year-end dividend increased to ¥61 per share (+16JPY YoY), payout ratio at 30.9%.

• Cash and cash equivalents at year-end were ¥18.67bn, up from ¥12.20bn.

Outlook and guidance

• FY08/25 sales forecast at ¥90.10bn (+8.6% YoY), operating profit ¥8.50bn (+8.5% YoY), and net income ¥5.23bn (+11.9% YoY).

• Adjusted operating profit (excluding strategic costs) expected to exceed ¥10bn, with an OP margin above 10%.

• Gross profit margin projected to rise to 78.3% (+0.7pt YoY).

• Strategic investments to accelerate global growth, with SG&A ratio to sales rising due to these costs.

• Focus on globalization, new store formats, digitalization, and product innovation, with continued cost optimization.