Meiji Electric Industries Co (3388) Q4 2024 earnings summary

Executive summary

• FY24 revenue rose 5.1% YoY to ¥74,580m; operating profit increased 7.0% to ¥2,914m, supported by automotive-related domestic sales and North American growth.

• FY25 plan targets a fourth consecutive year of revenue and profit growth, with revenue of ¥78,500m and operating profit of ¥3,250m.

Financial highlights

• FY24 ordinary profit was ¥3,332m, up 9.2% YoY; net income attributable to owners of the parent was ¥2,426m, up 10.7%.

• FY24 sales growth and a 0.2-point rise in gross margin to 14.7% contributed to ordinary profit increasing ¥282m YoY.

Outlook and guidance

• FY25 forecast: revenue ¥78,500m (+5.3% YoY), operating profit ¥3,250m (+11.5%), ordinary profit ¥3,490m (+4.7%) and net income ¥2,510m (+3.5%).

• FY27 targets: revenue ¥90,000m, operating profit ¥4,860m, ordinary profit ¥5,070m, net income ¥3,630m, operating margin 5.4% and ROE 10.0%.

• FY25 ordinary profit bridge forecasts a ¥158m increase; higher sales and lower non-operating income are partly offset by personnel investment and lower margin benefits than in FY24.