Meiji Electric Industries Co (3388) Q2 2024 earnings summary

Executive summary

• Q2 FY2024 revenue rose 11.2% YoY to ¥33,969m; operating profit increased 87.6% to ¥1,100m and net income rose 68.0% to ¥964m.

• Growth was supported by automotive-related demand and larger equipment projects; power equipment sales led product categories with 62.2% growth.

Financial highlights

• Revenue was ¥33,969m, up ¥3,427m YoY; operating profit was ¥1,100m, ordinary profit ¥1,362m and net income attributable to owners ¥964m.

• Ordinary profit increased ¥554m YoY: operating profit contribution was +¥514m and non-operating contribution +¥40m.

• Profit growth reflected higher gross profit from increased sales and improved gross margin; personnel expenses and other SG&A increased, partly offset by higher non-operating income.

Outlook and guidance

• FY2024 forecast: revenue ¥76,000m (+7.1% YoY), operating profit ¥2,960m (+8.6%), ordinary profit ¥3,180m (+4.2%) and net income ¥2,200m (+0.4%).

• FY2024 annual dividend forecast is ¥53 per share.