KATITAS (8919) Q3 2025 earnings summary

Executive summary

• Net sales for the first nine months of FY2024 rose 3.2% year-over-year to ¥96,639 million, with operating profit up 16.1% to ¥10,867 million and net income up 14.3% to ¥7,209 million.

• Number of properties sold increased 4.8% year-over-year to 5,526, while properties purchased surged 17.6% to 6,365, resolving prior inventory shortages.

• Gross profit margin improved to 23.4% (+1.5pt YoY), driven by cost control, product mix, and price adjustments.

• Adjusted operating profit for 3Q YTD was ¥12,356 million, up 13.1% YoY, reflecting exclusion of consumption tax-related litigation impacts.

• Ongoing litigation regarding consumption tax apportionment has no further impact on operating profit, as all required losses have been recorded.

Financial highlights

• 3Q FY2024 net sales: ¥32,629 million (+3.2% YoY); operating profit: ¥4,046 million (+15.2% YoY); net income: ¥2,674 million (+15.6% YoY).

• Gross profit margin in 3Q reached 24.3% (+1.8pt YoY); operating profit margin improved to 12.4% (+1.3pt YoY).

• Equity-to-asset ratio improved to 55.5% as of December 31, 2024, from 52.1% at the previous fiscal year-end.

• Adjusted EPS for 3Q YTD was ¥105.45 (+12.0% YoY); adjusted net income margin at 8.5% (+0.7pt YoY).

• Basic earnings per share for the period was ¥92.29, up from ¥81.10 in the prior year.

Outlook and guidance

• FY2024 full-year guidance: net sales ¥134,500 million (+6.1% YoY), operating profit ¥14,000 million (+10.5% YoY), net income ¥9,400 million (+10.6% YoY), and basic EPS ¥120.56.

• No changes to previously announced full-year earnings forecasts.

• Dividend forecast for FY2024 is ¥56.0 per share (interim ¥28.0, year-end ¥28.0), maintaining a payout ratio of at least 40% based on adjusted net income.

• Focus in 4Q will shift to preparing properties for market to secure stable growth into the next fiscal year.