Maxell (6810) Q4 2024 earnings summary

Executive summary

• FY2024 net sales declined 2.7% to ¥129,139 million, while operating profit rose 43.4% to ¥8,083 million and profit attributable to owners of parent rose 45.3% to ¥7,544 million.

• Profitability improved on automotive optical components, licensing revenue, better Life Solution performance and foreign exchange gains; one-time Life Solution reform expenses weighed on results.

Financial highlights

• Gross profit increased to ¥30,496 million from ¥30,098 million as cost of sales and SG&A declined; ordinary profit rose 45.5% to ¥9,786 million.

• Sales quantity variance was negative ¥9.6 billion, partly offset by positive price variance of ¥1.7 billion and exchange variance of ¥4.2 billion.

• Operating cash flow was ¥14,240 million, investing cash flow was negative ¥4,848 million and financing cash flow was negative ¥9,490 million; period-end cash was ¥38,665 million.

Outlook and guidance

• FY2025 forecasts: net sales ¥128,000 million, operating profit ¥8,000 million, parent profit ¥6,000 million and EPS ¥130.88; operating margin is forecast at 6.3%.

• Lower rechargeable battery sales and licensing revenue are expected to be partly offset by growth businesses and profitability gains; the US dollar exchange-rate assumption is ¥145.

• FY2025 capital investment is forecast at ¥8,000 million, depreciation at ¥5,500 million and R&D expenses at ¥6,000 million.

• The FY2025 full-year dividend forecast is ¥50 per share; MEX26 prioritizes investment in growth businesses and shareholder returns based on total payout ratio.