Koike Sanso Kogyo (6137) Q4 2024 earnings summary

Executive summary

• FY2024 revenue and profits rose substantially; ordinary profit reached a record, led by DBC fiber-laser cutting machine sales and strong US subsidiary performance.

• Industrial gas price revisions, medical respiratory-equipment rentals, and welding automation products also supported results.

Financial highlights

• Revenue was ¥51,387 million, up 7.3% YoY; gross profit was ¥15,638 million, up 11.5%.

• Operating profit was ¥4,314 million, up 31.0%; ordinary profit was ¥5,149 million, up 36.0% and a record.

• Net income attributable to owners of the parent was ¥3,056 million, up 48.0% YoY.

• Profit growth reflected higher sales, improved cost ratio, and yen depreciation; SG&A increased mainly due to wage increases.

Outlook and guidance

• FY2025 forecast: revenue ¥52,000 million (+1.2%), operating profit ¥4,400 million (+2.0%), ordinary profit ¥4,800 million (-6.8%), and net income ¥2,700 million (-11.6%).

• Operating profit is expected to edge up, while ordinary profit is forecast broadly flat excluding spot factors such as foreign-exchange gains; higher payroll, hiring, and systems costs are expected.

• Per-share dividend forecast remains ¥200; assumed exchange rates are ¥140/$ and ¥157/€.

• Prior three-year plan targets of ¥47 billion revenue, 6.5% ordinary-profit margin, and 4.5% ROE were all achieved; the new plan prioritizes growth investment, technology development, and sales.