Kubota (6326) Q4 2023 earnings summary

Executive summary

• FY2023 revenue rose 12.8% YoY to ¥3,020.7bn; operating profit increased 53.4% to ¥328.8bn and profit attributable to owners rose 52.4% to ¥238.5bn.

• Overseas revenue grew 14.6% to ¥2,377.6bn, representing 78.7% of total revenue.

• Q4 revenue increased 5.3% YoY to ¥762.5bn; operating profit rose 103.5% to ¥70.0bn and attributable profit increased 146.2% to ¥56.1bn.

• FY2024 guidance: revenue of ¥3,050.0bn, operating profit of ¥320.0bn and attributable profit of ¥226.0bn.

Financial highlights

• FY2023 revenue increased ¥343.7bn to ¥3,020.7bn; overseas revenue was ¥2,377.6bn and Japan revenue ¥643.1bn.

• Operating profit was ¥328.8bn, up ¥114.4bn; profit before income taxes was ¥342.3bn versus ¥231.2bn in FY2022.

• Profit attributable to owners rose to ¥238.5bn from ¥156.5bn; basic EPS was ¥201.74 versus ¥131.06.

• FX increased revenue by ¥145.0bn YoY; profit growth also reflected sales-price increases, partly offset by incentives, materials and inflation-related expenses.

Outlook and guidance

• FY2024 revenue forecast at ¥3,050.0bn (+1.0%); operating profit at ¥320.0bn (-2.7%) and attributable profit at ¥226.0bn (-5.2%).

• FY2024 profit-before-tax forecast is ¥333.0bn; guidance assumes ¥140/US$ and ¥153/€.

• Operating profit forecast includes sales-price increases of ¥36.8bn and sales-volume impact of ¥2.3bn, offset by materials (-¥24.0bn), incentives (-¥23.1bn) and other costs (-¥36.1bn).

• Machinery revenue is forecast at ¥2,654.0bn and Water & Environment at ¥378.0bn; operating profit forecasts are ¥358.0bn and ¥31.0bn, respectively.

• Solid construction machinery demand and firm farm-equipment sales, especially in India, are expected; domestic Farm & Industrial Machinery revenue is forecast to edge down.