Koyou Rentia (7081) Q4 2024 earnings summary

Executive summary

• Achieved record-high revenue for FY2024, increasing 2.9% year-over-year to ¥31,861 million, but operating profit fell 14.8% and net income declined 3.4% due to higher SG&A and lower gross margin.

• Rental business saw steady construction demand, but event and corporate markets declined; increased personnel and SG&A led to lower profits.

• Space design benefited from Expo-related projects, but profit remained flat due to higher costs.

• ICT business expanded with the acquisition of OST, but profitability was pressured by higher costs and lower utilization.

• Executed a 2-for-1 stock split effective January 2025 and revised shareholder benefit program.

Financial highlights

• Revenue: ¥31,861 million, up 2.9% year-over-year.

• Operating profit: ¥2,081 million, down 14.8% year-over-year; ordinary profit: ¥2,133 million, down 13.9%.

• Net income: ¥1,549 million, down 3.4% year-over-year; EPS: ¥140.98 (post-split basis).

• EBITDA: ¥4,260 million, nearly flat year-over-year.

• ROE: 15.0% (down from 17.9% previous year); equity ratio: 60.1%.

Outlook and guidance

• FY2025 forecast: revenue ¥32,600 million (+2.3%), operating profit ¥2,200 million (+5.7%), net profit ¥1,400 million (−9.6%).

• Anticipates continued cost pressures from raw materials, logistics, and personnel investments.

• Dividend forecast: ¥31 per share (post-split basis).