KOA Corporation (6999) Q4 2023 earnings summary

Executive summary

• FY2022 revenue rose 15.6% YoY to ¥75.07bn; operating profit increased 78.7% to ¥10.22bn and net income attributable to owners rose 54.4% to ¥7.37bn.

• Growth reflected yen depreciation, higher production capacity and higher average selling prices; FY2023 guidance anticipates lower revenue and operating profit than FY2022.

Financial highlights

• Ordinary profit increased 53.6% YoY to ¥10.54bn; operating margin was 13.6%, up from 8.8%.

• Consolidated gross profit was ¥25.69bn; EPS was ¥198.8 and ROE was 10.5% for FY2022.

• Total assets grew 18.7% to ¥112.77bn; cash and deposits increased 25.0% to ¥28.64bn, while inventory rose 28.6% to ¥13.91bn.

Outlook and guidance

• FY2023 forecast: revenue ¥71.9bn, operating profit ¥6.7bn, operating margin 9.3% and ROE 7.7%.

• FY2024 midterm targets: revenue at least ¥87bn, operating profit at least ¥11bn, operating margin at least 13% and ROE at least 11%.

• The 2024 midterm plan prioritizes supply capacity expansion, digital improvements to QCD, new products and businesses, and preparation for structural change toward 2040.