Konica Minolta (4902) Q4 2024 earnings summary

Executive summary

• FY2024 revenue reached a record ¥1,159.9bn; operating profit returned to ¥26.1bn from a ¥95.1bn loss, while profit attributable to owners was ¥4.5bn.

• Business contribution profit declined 12.5% to ¥26.0bn; free cash flow improved to ¥38.8bn from -¥24.1bn.

Financial highlights

• Gross profit rose 3.9% to ¥504.6bn; gross margin increased 0.5pt to 43.5%, while SG&A rose 5% to ¥478.7bn.

• Profit before tax was ¥13.6bn versus a ¥101.8bn loss; basic EPS was ¥9.15 versus -¥208.89.

• Q4 revenue increased 2.8% to ¥318.0bn; business contribution profit was ¥13.7bn and operating profit ¥17.5bn.

• FY2024 R&D expense was ¥65.1bn; capital expenditures were ¥44.4bn and depreciation and amortization was ¥75.7bn.

Outlook and guidance

• FY2025 revenue is forecast at ¥1,160.0bn, business contribution profit at ¥40.0bn, operating profit at ¥13.0bn and profit attributable to owners at ¥0; EPS forecast is ¥0.00.

• Guidance includes ~¥20bn in global structural-reform costs; reforms target optimization of ~2,400 employees and are expected to lift FY2026 business contribution profit by ~¥20bn versus the pre-optimization baseline.

• FY2025 annual dividend forecast is zero; ROE target is at least 5% by FY2026.

• FY2025 guidance assumes ¥140/$ and ¥150/€; FY2025 FCF is forecast at ¥43.0bn.