Nippon Express (9147) Q4 2024 earnings summary

Executive summary

• FY2024 revenue rose 15.1% year-over-year to ¥2,577.6 billion, driven by global logistics recovery and cargo-partner consolidation.

• Profitability declined due to lower pandemic-related volumes, higher personnel, energy, and labor costs; business profit down 21.7% to ¥63.5 billion, operating profit down 18.3% to ¥49.1 billion, and net income attributable to owners fell 14.4% to ¥31.7 billion.

• Q4 business profit showed real-term recovery, aided by reversal of accrued paid leave liabilities.

• New mid-term plan "Dynamic Growth 2.0" launched, focusing on global expansion, Japan business restructuring, and sustainability.

Financial highlights

• Operating income fell 18.3% year-over-year to ¥49.0 billion; net profit attributable to owners dropped 14.4% to ¥31.7 billion.

• Q4 revenue increased 20.2% year-over-year; Q4 net profit nearly doubled sequentially from Q3.

• Gross profit margin decreased to 8.6% from 10.2% year-over-year; operating margin dropped to 1.9% from 2.7%.

• Cash and equivalents at year-end were ¥251.3 billion, down ¥63.7 billion from the previous year.

• Dividend payout ratio rose to 82.3% (¥300/share), with a planned 3-for-1 stock split effective January 2025.

Outlook and guidance

• FY2025 revenue forecast at ¥2,700.0 billion (+4.7% year-over-year); business profit expected to rise 25.8% to ¥80.0 billion.

• Operating income projected at ¥80.0 billion (+63.0% year-over-year); net profit forecast at ¥55.0 billion (+73.3%).

• Segment profit growth expected in all regions, especially Europe (+45.8%) and East Asia (+32.4%).

• ROE and ROIC expected to improve to 6.5% and 4.7%, respectively.

• Management notes ongoing geopolitical and economic uncertainties but anticipates moderate logistics demand recovery.