Nippon Electric Glass (5214) Q4 2024 earnings summary

Executive summary

• Net sales/revenue rose 6.9% year-over-year to ¥299.2 billion in FY2024, with all profit metrics turning positive after prior-year losses due to business restructuring and higher sales volumes.

• Operating profit reached ¥6.1 billion (vs. ¥-10.4 billion), ordinary profit ¥12.4 billion (vs. ¥-9.4 billion), and profit attributable to owners swung from a ¥26.1 billion loss to ¥12.0–12.1 billion profit.

• Strong performance in electronics and displays offset weakness in composites; medical care and buildings segments saw year-on-year sales growth.

• Cash flow and financial position improved, with strong operating and investing cash inflows and a reduction in total assets and liabilities.

Financial highlights

• Operating margin improved to 2.0% from -3.7% year-over-year; ordinary profit reached ¥12.4 billion.

• Operating cash flow was ¥52.2 billion, up ¥53.5 billion year-over-year; year-end cash and equivalents rose to ¥123.6 billion.

• Annual dividend increased to ¥130 per share (from ¥120), with a further increase to ¥145 planned for next year.

• Equity ratio remained strong at 69.6% (vs. 69.2% prior year).

• Extraordinary income included a ¥25.4 billion gain on sale of non-current assets and ¥6.2 billion from investment securities; impairment losses totaled ¥11.2 billion.

Outlook and guidance

• FY2025 net sales/revenue forecast at ¥310.0 billion (+3.6%), operating profit at ¥20.0 billion (+227.9%), and profit attributable to owners at ¥15.0 billion (+24–25%).

• Dividend forecast for FY2025 is ¥145 per share; share repurchases totaling up to ¥20 billion planned.

• Display and electronic device segments expected to drive growth; composites, medical, heat-resistant, and construction materials forecast to remain stable.

• Management expects recovery supported by easing geopolitical risks but notes ongoing uncertainties from U.S. policy changes and global cooperation.

• Risks include global economic uncertainty, regulatory changes, market volatility, and raw material price fluctuations.