Kanda Holdings (9059) Q4 2024 earnings summary

Executive summary

• FY2024 revenue declined 1.0% YoY as international cargo activity weakened, while operating profit rose 25.7% to ¥3,432 million; higher profits reflected progress in securing appropriate freight rates.

• FY2025 guidance targets revenue of ¥52,000 million and ordinary income of ¥3,550 million, with growth expected despite subdued international freight and rising domestic costs.

Financial highlights

• Revenue was ¥51,123 million in FY2024, down 1.0% from ¥51,621 million in FY2023.

• Operating profit rose 25.7% YoY to ¥3,432 million; ordinary income reached ¥3,531 million versus ¥2,802 million in FY2023.

• Net income was ¥2,273 million and EPS was ¥105.91 in FY2024.

• Operating cash flow was ¥4,575 million; investing cash flow was -¥3,139 million and financing cash flow was ¥610 million.

Outlook and guidance

• FY2025 revenue is forecast at ¥52,000 million; ordinary income is forecast at ¥3,550 million, exceeding the FY2024 result.

• International cargo recovery is not expected; domestic costs are forecast to rise further, with appropriate freight rates and plan achievement as key priorities.

• Priorities include new business wins, M&A, recruiting and retaining drivers, DX investment, operational capability, and accident prevention.