Koyou Rentia (7081) Q3 2024 earnings summary

Executive summary

• Revenue for the nine months ended September 30, 2024, increased by 3.6% year-over-year to ¥23,635 million, but operating profit declined by 22.6% to ¥1,647 million and net profit attributable to shareholders fell 26.6% to ¥932 million.

• Profitability was impacted by higher personnel and SG&A expenses, as well as lower sales in certain segments.

Financial highlights

• Operating profit margin decreased due to increased SG&A costs and lower sales in event and corporate rental markets.

• Comprehensive income for the period was ¥925 million, down from ¥1,284 million year-over-year.

• EPS for the period was ¥169.93, compared to ¥234.80 in the prior year.

Outlook and guidance

• Full-year revenue forecast is ¥31,000 million (up 0.1% year-over-year), with operating and ordinary profit both projected at ¥1,850 million (up 24.3% and 25.4%, respectively), and net profit forecast at ¥1,250 million (up 22.1%).

• Dividend forecast for the year is ¥60 per share, unchanged from the previous guidance.