Nakanishi (7716) Q4 2023 earnings summary

Executive summary

• FY2023 net sales rose 22.6% YoY to ¥59,692m; EBITDA increased 1.6% to ¥17,775m, while operating income fell 7.1% to ¥14,297m.

• Income attributable to owners of parent increased 83.1% to ¥22,836m, including ¥11,498m gain on step acquisitions.

Financial highlights

• Ordinary income declined 2.3% YoY to ¥17,238m; diluted EPS was ¥267.29, versus ¥145.11 in FY2022.

• Profit before income taxes rose to ¥28,808m from ¥17,297m; comprehensive income increased 80.6% to ¥25,580m.

• Operating cash flow was ¥8,549m versus ¥7,764m; cash and cash equivalents ended FY2023 at ¥25,973m, down ¥5,759m.

Outlook and guidance

• FY2024 forecast: net sales ¥74,432m (+24.7% YoY), EBITDA ¥17,770m (~0.0%), and operating income ¥12,652m (-11.5%).

• FY2024 ordinary income is forecast at ¥13,088m (-24.1%) and net income attributable to owners at ¥8,894m (-61.1%).

• Forecast assumes ¥135 per U.S. dollar and ¥150 per euro; annual dividend forecast is ¥52 per share.