Koyou Rentia (7081) Q2 2024 earnings summary

Executive summary

• Revenue for the first half increased 11.0% year-over-year to ¥16,333 million, reaching a record high, with all segments posting growth.

• Operating profit declined by 19.6% and net profit by 26.7% due to higher depreciation, personnel, and fixed costs, despite strong sales.

• Strategic investments in high-value-added products and new market development contributed to revenue growth.

• A cross-group project team was established for the 2025 Osaka/Kansai Expo, and company-wide engagement surveys were conducted to enhance human capital.

Financial highlights

• Revenue: ¥16,333 million (+11.0% YoY); operating profit: ¥1,159 million (−19.6% YoY); net profit: ¥640 million (−26.7% YoY); ordinary profit: ¥1,171 million (−19.9% YoY).

• Gross profit margin decreased to 38.7% from 42.7% YoY.

• EBITDA was ¥2,228 million (−3.7% YoY).

• Progress rates for full-year targets: revenue 52.7%, operating profit 44.6%.

• Comprehensive income was ¥644 million, down 26.8% YoY.

Outlook and guidance

• Full-year revenue forecast is ¥31,000 million (+0.1% YoY), with operating profit expected at ¥2,600 million (+6.4% YoY) and net profit at ¥1,650 million (+2.8% YoY).

• Annual dividend forecast is ¥60 per share, up from ¥55 last year.

• Profitability is expected to be maintained through robust orders and price adjustments, despite anticipated increases in cost of goods sold and SG&A expenses.

• No change to previously announced full-year guidance and dividend forecasts.