Nippon Carbon (5302) Q2 2024 earnings summary

Executive summary

• Net sales for the six months ended June 30, 2024, rose 3.9% year-over-year to ¥18,800 million, with operating profit up 7.0% to ¥3,393 million and profit attributable to owners of parent up 17.1% to ¥2,292 million.

• Comprehensive income increased to ¥3,866 million from ¥3,741 million year-over-year, reflecting improved profitability and gains in other comprehensive income.

Financial highlights

• Gross profit increased to ¥5,926 million from ¥5,685 million year-over-year, with gross margin improving slightly.

• Ordinary profit rose 10.6% year-over-year to ¥3,775 million.

• Earnings per share for the six months reached ¥207.48, up from ¥177.28 in the prior year period.

• Total assets grew to ¥82,244 million as of June 30, 2024, from ¥78,466 million at the end of 2023.

• Net assets increased to ¥60,308 million, with an equity ratio stable at 63.0%.

Outlook and guidance

• Full-year 2024 forecast projects net sales of ¥43,000 million (up 13.6% year-over-year), operating profit of ¥7,100 million (up 8.0%), and profit attributable to owners of parent of ¥4,100 million (up 1.2%).

• Full-year earnings per share forecast is ¥371.23.

• Annual dividend forecast maintained at ¥200 per share.