Kanamoto (9678) Q3 2024 earnings summary

Executive summary

• Net sales for the nine-month period ended July 31, 2024, rose 4.6% year-over-year to ¥151,861 million, with operating profit up 16.4% to ¥9,029 million and profit attributable to owners of parent up 28.7% to ¥5,432 million.

• Net sales for FY2023 reached ¥197,481 million, up 5.0% year-over-year, with operating profit at ¥11,958 million, down 9.6%, and profit attributable to owners at ¥6,721 million, down 19.5%.

• The construction equipment rental business accounted for 90.2% of total sales, with segment net sales up 4.5% year-over-year.

• The business environment saw gradual economic recovery in Japan, but uncertainties persist due to market fluctuations and overseas risks.

• The company focused on profitability improvements, asset utilization, and preparing for the next medium-term plan.

Financial highlights

• Gross profit increased to ¥43,148 million from ¥41,177 million year-over-year.

• Ordinary profit rose 15.7% year-over-year to ¥9,429 million.

• Earnings per share for the period were ¥152.70, up from ¥116.21 in the prior year.

• Cash and cash equivalents at end of FY2023 were ¥45,093 million, down ¥1,953 million from the previous year.

• Total assets increased to ¥323,266 million as of July 31, 2024, up ¥6,826 million from the prior fiscal year-end.

Outlook and guidance

• Full-year FY2024 guidance projects net sales of ¥205,300 million (+4.0%), operating profit of ¥14,100 million (+17.9%), ordinary profit of ¥14,300 million (+14.5%), and profit attributable to owners of parent of ¥8,300 million (+23.5%).

• No changes have been made to previously announced forecasts.

• Public investment is expected to remain strong, with private capital investment recovering despite concerns over rising construction costs.