Maxell (6810) Q1 2024 earnings summary

Executive summary

• Q1 net sales were ¥32,225 million vs. ¥32,227 million; operating profit rose 57.4% to ¥2,024 million and profit attributable to owners of parent rose 42.6% to ¥2,346 million.

• Optics & Systems growth, licensing revenue, business reforms and yen depreciation supported profitability; the FY2024 forecast remained unchanged, with recovery expected from Q3.

Financial highlights

• Ordinary profit increased to ¥3,140 million from ¥1,934 million; gross profit rose to ¥7,232 million from ¥7,185 million, while SG&A declined to ¥5,208 million from ¥5,899 million.

• Operating profit increased ¥0.7bn YoY, supported by business reform (+¥0.8bn), FX (+¥0.4bn) and cost reductions (+¥0.3bn), offset by quantity variance (-¥0.7bn).

• Sales bridge factors were quantity variance -¥1.8bn, price variance +¥0.8bn and FX variance +¥1.0bn, leaving sales essentially unchanged.

• Comprehensive income was ¥4,500 million, down 19.5% YoY, reflecting lower other comprehensive income despite higher quarterly profit.

Outlook and guidance

• FY2024 forecast was unchanged: net sales ¥133,000 million, operating profit ¥7,500 million, profit attributable to owners of parent ¥5,200 million and EPS ¥113.48.

• Economic weakness was expected through Q2, with recovery from Q3; plans included growing automotive-related sales, portfolio reform, cost reductions and reflecting higher costs in selling prices.

• Consumer LIB sales were firm in Q1, with slowdown risk after Q2; rechargeable-battery demand was expected to recover from 2H, including medical-use orders.

• Construction-tape orders and automotive optical components were expected to recover in 2H; semiconductor DMS was expected to remain firm through component procurement and back-order elimination.