NH Foods (2282) Q4 2024 earnings summary

Executive summary

• FY2024 net sales rose 3.5% YoY to ¥1,303.4bn; business profit increased 75.6% to ¥44.9bn, led by improved Processed Foods and Fresh Meats results and an Overseas recovery.

• Profit attributable to owners of the parent rose 68.8% to ¥28.1bn; profit before tax increased 83.2% to ¥40.6bn.

Financial highlights

• Net sales increased 3.5% YoY to ¥1,303,432mn; business profit rose 75.6% to ¥44,939mn.

• Profit before tax increased 83.2% to ¥40,599mn; profit attributable to owners of the parent grew 68.8% to ¥28,078mn.

• Total comprehensive income rose 102.8% to ¥46,754mn; basic EPS was ¥273.70 versus ¥162.44 in FY2023.

• Operating cash flow was ¥86,586mn; investing cash outflow was ¥39,224mn and financing cash outflow was ¥53,189mn.

Outlook and guidance

• FY2025 forecast: net sales ¥1,340bn (+2.8%), business profit ¥48bn, profit before tax ¥40bn and parent-attributable profit ¥27bn; basic EPS forecast at ¥263.03.

• Overseas growth is expected from Australian beef and North American processed foods; Fresh Meats aims to improve margins through high-value products, productivity and expanded sales.

• FY2025 segment forecasts: Processed Foods profit ¥10.5bn, Fresh Meats ¥35.5bn, Overseas ¥5.0bn and Ballpark ¥2.6bn.

• Ballpark targets more than 3mn visitors in its second operating year and aims to maintain profit at the FY2024 level despite higher baseball-team costs.