Mitsubishi Pencil (7976) Q2 2023 earnings summary

Executive summary

• H1 revenue and gross profit reached record levels; operating profit rose 21.1% YoY as stronger sales and improved sales margins offset elevated raw-material costs.

• Overseas sales grew, led by Europe, while domestic demand also recovered; H1 results put profit measures at roughly 60% of annual guidance.

Financial highlights

• H1 revenue was ¥36,240 million, up 7.0% YoY; gross profit was ¥18,206 million, up 10.1%.

• Operating income rose 21.1% to ¥5,658 million; ordinary income increased 17.4% to ¥6,538 million.

• Net income attributable to parent shareholders increased 13.5% to ¥4,436 million.

Outlook and guidance

• FY2023 guidance: revenue ¥70,500 million, operating income ¥9,500 million, ordinary income ¥10,400 million, and net income ¥7,100 million.

• H1 progress: revenue 51.4%, operating income 59.6%, ordinary income 62.9%, and net income 62.5% of annual forecasts.

• FY2023 annual dividend forecast is ¥36 per share, marking 14 consecutive years of dividend increases; forecast EPS is ¥130.45.