Nippon Express (9147) Q3 2024 earnings summary

Executive summary

• Q3 FY2024 revenue rose 13.4% year-over-year to ¥1,900.2 billion, driven by global logistics recovery and the consolidation of cargo-partner (CP).

• Profit measures below business income declined due to lower pandemic-related volumes and higher personnel costs, but Q3 standalone profits improved sequentially as logistics demand rebounded.

• Q3 consolidated segment income (business income) was ¥43.7 billion, down 27.5% year-over-year; operating income was ¥35.0 billion, and profit attributable to owners was ¥18.4 billion, down 31.8% and 39.5% respectively.

Financial highlights

• Q3 revenues: ¥1,900.2 billion (+13.4% year-over-year); Q3 operating income: ¥35.0 billion (-31.8% year-over-year); Q3 profit attributable to owners: ¥18.4 billion (-39.5% year-over-year).

• Cumulative Jan–Sep 2024: revenues ¥1,900.2 billion (+13.4%), business income ¥43.7 billion (-27.5%), operating income ¥35.0 billion (-31.8%), profit attributable to owners ¥18.4 billion (-39.5%).

• Q3 vs Q2 FY2024: revenue up 2.8%, business income up 33.9%, operating income up 0.7%, profit attributable to owners up 606%.

• Overseas revenues surged 53.5% year-over-year for Jan–Sep 2024, reflecting CP consolidation and FX impact.

Outlook and guidance

• FY2024 full-year revenue forecast unchanged at ¥2,570.0 billion (+14.8% year-over-year); business income forecast at ¥70.0 billion (-13.9%), operating income at ¥65.0 billion (+8.2%), profit attributable to owners at ¥40.0 billion (+8.0%).

• Q4 FY2024 expected to see further recovery: revenue forecast ¥669.7 billion (+3.0% vs Q3), business income ¥26.2 billion (+43.5%), operating income ¥29.9 billion (+88.6%), profit attributable to owners ¥21.5 billion (+207.1%).

• Overseas revenues for FY2024 forecast at ¥998.0 billion (+55.3% year-over-year).

• Amortization of CP intangible assets expected to be lower than initially planned, offsetting Q3 lag.