Niitaka (4465) Q4 2024 earnings summary

Executive summary

• Achieved year-over-year revenue and profit growth driven by increased sales of detergents and solid fuels, product price optimization, and contributions from new subsidiaries.

• Net sales increased by 16.6% year-over-year to ¥22,739 million for the year ended May 31, 2024.

• Operating profit rose 72.6% year-over-year to ¥1,476 million, with operating margin improving by 2.1 points to 6.5%.

• Net income attributable to parent increased 25.7% year-over-year, despite the cancellation of a second factory in China.

Financial highlights

• Revenue rose 16.6% year-over-year to ¥22,739 million, exceeding plan progress at 101.1%.

• Gross profit increased from ¥6,685 million to ¥8,135 million year-over-year.

• Earnings per share rose to ¥119.58 from ¥95.13 year-over-year.

• Net assets increased to ¥13,385 million, with an equity ratio of 58.9%.

• Comprehensive income rose to ¥829 million from ¥613 million year-over-year.

Outlook and guidance

• FY2025 revenue forecast is ¥23,500 million (+3.3% year-over-year), with operating profit expected at ¥1,500 million (+1.6%).

• Net income forecasted to rise 41.7% to ¥1,000 million, with ROE improving from 5.4% to 7.3%.

• Earnings per share forecast is ¥169.39.

• Growth expected from increased sales of detergents and health foods, and cost reduction initiatives.