Maxell (6810) Q3 2024 earnings summary

Executive summary

• Nine-month sales fell 1.9% YoY to ¥97,304 million; operating profit rose 41.8% to ¥6,471 million and profit attributable to owners of parent rose 14.2% to ¥5,685 million.

• Profitability improved on higher licensing revenue and automotive optical component sales, stronger Health & Beauty Care profitability and cost reductions; one-time Life Solution reform expenses partly offset gains.

Financial highlights

• Gross profit was ¥22,735 million versus ¥22,713 million YoY; SG&A declined to ¥16,264 million from ¥18,149 million.

• Ordinary profit rose 32.7% to ¥7,646 million, including foreign exchange gains; comprehensive income was ¥7,706 million, down 1.5% YoY.

• EPS was ¥124.04 versus ¥103.76; extraordinary losses totaled ¥619 million, including ¥435 million in extra retirement payments.

Outlook and guidance

• FY ending March 2024 forecast unchanged: sales ¥130,000 million, operating profit ¥7,500 million, profit attributable to owners of parent ¥5,800 million and EPS ¥126.54; forecast exchange rate ¥143 per US dollar.

• Q3 results were slightly better than forecast; Q4 outlook cites continued weakness in rechargeable and primary batteries and semiconductor-related products, while automotive-related products are expected to perform well.

• FY segment forecasts: Energy sales ¥35,500 million and operating profit ¥500 million; Functional Materials ¥30,600 million and ¥1,600 million; Optics & Systems ¥41,900 million and ¥5,400 million; Life Solution ¥22,000 million and break-even operating profit.

• Next-year priorities include expanding automotive product capacity, increasing high-value semiconductor process products and sensing lenses, and improving Health & Beauty Care OEM profitability.