JVCKENWOOD (6632) Q1 2024 earnings summary

Executive summary

• Q1 revenue increased 2.5% year-over-year to ¥87.8B, driven by strong Communications Systems sales in S&S and steady Overseas OEM performance in M&T.

• Core operating income rose 18.6% to ¥6.0B, with all major sectors contributing to profit growth and S&S posting a record high since management integration.

• Profit attributable to owners surged 58.3% year-over-year to ¥5.5B.

• The company started the fiscal year strongly, aligning with its medium-term management plan targets.

Financial highlights

• Q1 revenue: ¥87.8B, up ¥2.2B (+2.5%) year-over-year.

• Core operating income: ¥6.0B, up ¥0.9B (+18.6%) year-over-year.

• Operating profit: ¥6.0B (+20.2% YoY); profit before income taxes: ¥7.0B (+42.6% YoY).

• Basic earnings per share rose to 36.50 yen from 21.84 yen in the prior year.

• EBITDA: ¥11.7B (+22.7% YoY); EBITDA margin: 13.3%.

Outlook and guidance

• No revision to full-year consolidated earnings or dividend forecasts; strong sales expected to continue from Q2 onward.

• FY2025 revenue forecast: ¥362.0B (+0.7% YoY); core operating income: ¥19.0B (-3.6% YoY).

• Profit attributable to owners forecast: ¥12.5B (-4.0% YoY); ROE expected at 10.5%.