Mabuchi Motor (6592) Q4 2024 earnings summary

Executive summary

• Net sales for FY2024 reached ¥196.2 billion, up 9.8% year-over-year, driven by growth in automotive and life/industrial product markets and yen depreciation.

• Operating income rose 39.3% to ¥21.6 billion, supported by improved selling prices, product mix, and favorable exchange rates.

• Profit attributable to owners of parent declined 33.9% year-over-year to ¥12.8 billion, impacted by a higher effective tax rate and lower extraordinary gains.

• Cash and cash equivalents at year-end increased to ¥130.6 billion, up ¥18.3 billion from the prior year.

Financial highlights

• Gross profit increased 19.8% year-over-year to ¥52.8 billion, with a gross margin of 26.9%.

• Ordinary income rose 20.2% to ¥32.4 billion.

• SG&A expenses increased 9.2% to ¥31.2 billion.

• Net cash from operating activities grew by ¥8.3 billion to ¥40.1 billion, aided by higher operating income and inventory reductions.

• Equity ratio remained high at 90.0%.

Outlook and guidance

• FY2025 net sales are forecast at ¥198.0 billion (+0.9% year-over-year), with operating income projected at ¥22.2 billion (+2.6%) and profit attributable to owners of parent at ¥15.1 billion (+17.7%).

• Ordinary income is expected to decrease 27.9% due to the exclusion of foreign exchange gains.

• Automotive product sales quantity expected to decrease slightly, with stable demand in emerging markets but sluggish growth in Europe and the US.

• Life and industrial product sales expected to be weak except for health and medical applications.

• Dividend per share forecast to rise to ¥78, with a total return ratio of 110% and a DOE ratio of 3.0–4.0% for stable returns.