KeePer Technical Laboratory (6036) Q4 2024 earnings summary

Executive summary

• Achieved record high profits for FY ended June 2024, with net sales of ¥20.57 billion, up 20.7% year-over-year, and net income of ¥4.42 billion, up 11.7% year-over-year.

• Proactive store expansion and staffing led to higher sales but lower operating profit in Keeper LABO operations, with 15 new stores opened.

• Launched new premium product TREX KeePer, and expanded applications of existing products, driving growth in both new and used vehicle segments.

Financial highlights

• Net sales: ¥20,574 million (+20.7% YoY); Operating profit: ¥6,101 million (+11.4% YoY); Ordinary profit: ¥6,075 million (+11.0% YoY); Net income: ¥4,421 million (+11.7% YoY).

• Basic EPS: ¥162.02 (vs. ¥145.06 last year); Operating profit margin: 29.7%; ROE: 34.5%.

• Cash and cash equivalents at period end: ¥5,137 million (vs. ¥3,573 million last year).

Outlook and guidance

• FY ending June 2025 forecast: Net sales ¥24,500 million (+19.1% YoY), operating profit ¥7,000 million (+14.7% YoY), net income ¥4,800 million (+8.6% YoY), basic EPS ¥175.90.

• Plans to open over 30 new stores in FY2025, with further expansion in subsequent years.

• Focus on expanding OEM approvals, new car market, and overseas business, especially in Southeast Asia.