Maxell (6810) Q2 2024 earnings summary

Executive summary

• 1H FY2023 net sales rose 0.6% YoY to ¥65,620m; operating profit increased 85.5% to ¥4,566m and profit attributable to owners of parent rose 57.1% to ¥4,934m.

• FY2024 sales guidance was cut to ¥130,000m, operating profit guidance remained ¥7,500m, and profit attributable to owners of parent guidance rose to ¥5,800m.

Financial highlights

• 1H ordinary profit rose 55.9% to ¥6,001m; EPS was ¥107.66 versus ¥64.62 a year earlier.

• Gross profit was ¥14,908m versus ¥14,710m, while SG&A fell to ¥10,342m from ¥12,249m.

• Profit benefited from price increases, business reform, cost reductions, improved product mix and yen depreciation; elevated purchase costs and one-time expenses partly offset gains.

Outlook and guidance

• FY2024 forecast: sales ¥130,000m, operating profit ¥7,500m, profit attributable to owners of parent ¥5,800m and EPS ¥126.56; prior forecasts were ¥133,000m, ¥7,500m and ¥5,200m.

• 2H forecast: sales ¥64,400m, operating profit ¥2,900m and net income ¥900m, reflecting early licensing revenue recognition, planned BtoC reform expenses and potential FX losses from yen appreciation.

• Segment FY forecasts: Energy sales/profit ¥35,500m/¥500m; Functional Materials ¥30,600m/¥1,600m; Optics & Systems ¥41,900m/¥5,400m; Life Solution ¥22,000m/¥0m.

• Sales outlook was reduced for Energy and Functional Materials; Optics & Systems sales and profit outlook increased, and Life Solution profit outlook improved to break-even.