Kubota (6326) Q3 2024 earnings summary

Executive summary

• Revenue for FY 2024 Q3 rose 0.9% year-over-year to ¥2,277.9 billion, driven by overseas growth despite domestic declines.

• Operating profit increased 6.4% year-over-year to ¥275.4 billion, mainly due to sales price hikes and favorable exchange rates.

• Profit attributable to owners of the parent grew 8.5% year-over-year to ¥197.9 billion.

• Comprehensive income fell to ¥249.2 billion from ¥410.1 billion, mainly due to lower exchange rate translation gains.

Financial highlights

• Overseas revenue grew 2.0% year-over-year to ¥1,820.6 billion, while Japan revenue declined 3.2% to ¥457.3 billion.

• Operating margin improved to 12.1% from 11.5% year-over-year.

• Net cash provided by operating activities was ¥150.6 billion, a significant improvement from a net outflow last year.

• Total assets increased to ¥5,588.4 billion, with equity attributable to owners of the parent at ¥2,299.8 billion (41.2% of total assets).

• Cash and cash equivalents rose to ¥246.1 billion, up ¥24.0 billion from the start of the period.

Outlook and guidance

• FY 2024 full-year revenue forecast revised downward to ¥2,950.0 billion, a 2.3% decrease from FY 2023, mainly due to expected declines in North America and Europe.

• Operating profit forecast lowered by ¥20.0 billion to ¥310.0 billion.

• Profit attributable to owners of the parent forecast at ¥221.0 billion, and EPS at ¥189.37.

• Overseas and Japan revenues both expected to decline year-over-year.

• Assumptions include exchange rates of ¥150/USD and ¥163/EUR.