MTG (7806) Q3 2024 earnings summary

Executive summary

• Revenue grew by 17.3% year-over-year for the first nine months, reaching ¥50,542 million, with record sales in both consolidated and ReFa brand segments.

• Net income attributable to owners of parent increased 19.4% year-over-year to ¥1,745 million, despite a decrease in operating and ordinary income due to higher SG&A expenses.

• Operating profit decreased 26.3% year-over-year to ¥1,884 million.

• Strong domestic sales, especially in hair care, and successful new product launches drove growth.

Financial highlights

• Consolidated sales for 1Q–3Q FY2024: ¥50.54 billion (+17.3% YoY); gross profit: ¥30.60 billion (+17% YoY).

• Operating income: ¥1.88 billion (down 26.3% YoY); ordinary income: ¥2.44 billion (down 15.1% YoY).

• Net income: ¥1.74 billion (+19.4% YoY); SG&A expenses rose 21% YoY to ¥28.71 billion.

• Earnings per share rose to ¥44.27 from ¥37.09 year-over-year.

• Total assets increased to ¥55,601 million as of June 30, 2024.

Outlook and guidance

• FY2024 full-year sales forecast: ¥67.0 billion (+11.4% YoY), with 75% progress achieved by 3Q.

• Net income forecast: ¥2.0 billion (+1% YoY), with 87% progress by 3Q.

• Operating profit projected at ¥3.4 billion, down 5.5% YoY.

• Full-year EPS forecast at ¥50.74.

• Profit targets expected to be met through cost control.