MTG (7806) Q4 2024 earnings summary

Executive summary

• Achieved record-high consolidated sales and increased profits for FY2024, driven by strong growth in the ReFa brand and recovery in SIXPAD sales.

• Net sales increased by 19.5% year-over-year to ¥71,865 million for the year ended September 30, 2024.

• Operating profit rose 10.2% year-over-year to ¥3,965 million, while ordinary profit grew 4.7% to ¥4,364 million.

• Profit attributable to owners of parent surged 45.6% year-over-year to ¥2,888 million.

• Hair care category under ReFa grew over 40% year-over-year, with new products contributing significantly.

Financial highlights

• FY2024 net sales reached ¥71.86 billion, up 19% year-over-year; operating income rose 10% to ¥3.96 billion.

• Gross profit increased to ¥43,101 million from ¥36,859 million year-over-year.

• Net income surged 46% to ¥2.88 billion.

• 4Q FY2024 sales and profits were particularly strong, with net income up 119% year-over-year.

• Diluted earnings per share rose to ¥73.08 from ¥50.35 year-over-year.

Outlook and guidance

• FY2025 guidance projects sales of ¥80.0 billion (+11%), operating income of ¥5.0 billion (+26%), and net income of ¥3.3 billion (+14%).

• Operating profit and ordinary profit are both projected at ¥5,000 million, up 26.1% year-over-year.

• EPS forecast for FY2025 is ¥82.51.

• Continued double-digit sales growth expected, led by ReFa and SIXPAD brands.

• Plans to introduce 150 new products and achieve a 50% new product sales ratio.