Koa Shoji Holdings (9273) Q4 2023 earnings summary

Executive summary

• FY2023 revenue and all major profit measures reached record highs; both business segments grew, supported by new product launches, share gains and higher production.

• FY2024 guidance calls for continued growth in both segments, with revenue of ¥22,980 million and operating income of ¥4,380 million.

Financial highlights

• FY2023 revenue was ¥22,052 million, up 8.3% YoY; gross profit was ¥6,442 million, with gross margin unchanged at 29.2%.

• Operating income rose 11.6% to ¥4,249 million; operating margin increased 0.6 percentage points to 19.3%.

• Ordinary income increased 9.0% to ¥4,091 million; net income attributable to parent shareholders rose 13.9% to ¥2,687 million.

• FY2023 actual revenue was ¥148 million below forecast, while operating income exceeded forecast by ¥299 million and net income by ¥237 million.

Outlook and guidance

• FY2024 revenue is forecast at ¥22,980 million, up 4.2% YoY; operating income at ¥4,380 million, up 3.1%; net income at ¥2,770 million, up 3.1%.

• Forecast ordinary income is ¥4,380 million, up 7.0% YoY; gross profit is ¥6,850 million, with gross margin forecast at 29.8%.

• Raw-material sales forecast: revenue ¥15,000 million, up 5.9%, and operating income ¥2,830 million, up 3.8%; drug manufacturing and sales: ¥7,980 million revenue, up 1.2%, and ¥1,540 million operating income, up 0.5%.

• Growth drivers include new product adoption and wider sales channels, lanthanum carbonate share gains, increased maxacalcitol syringe production and vial-line contract manufacturing.