Nippon Ski Resort Development Co (6040) Q4 2023 earnings summary

Executive summary

• Achieved record highs in all revenue categories for FY2023, with revenue of ¥6,898 million, up 23.9% year-over-year, and net income of ¥952.7 million, up 2,972.8% year-over-year, driven by easing COVID-19 restrictions, inbound recovery, and domestic demand initiatives such as kids programs.

• Profit margins improved compared to FY2019 due to cost optimization, including consolidation of overlapping departments during the pandemic.

• Significant recovery in inbound visitors and domestic attendance, with total ski resort visitors up 16.3% year-over-year to 1.515 million.

• NSD Kids Program membership doubled, contributing to the highest number of child visitors in seven years.

Financial highlights

• Operating income reached ¥1,036 million, a 408% increase year-over-year; ordinary income was ¥1,077 million, up 212.1%.

• Gross profit increased to ¥2,827 million from ¥1,903 million year-over-year.

• EBITDA was ¥1,642 million, up 91.4% year-over-year.

• EPS was ¥62.82, up from ¥2.11 in the previous year.

• Cash and equivalents at year-end were ¥1,742 million, down 26.4% from the previous year.

Outlook and guidance

• FY2024 revenue is projected at ¥7,500 million (+8.7%), with operating income of ¥1,350 million (+30.3%) and net income of ¥1,000 million (+5.0%).

• Inbound visitors expected to recover to pre-pandemic levels (230,000), with domestic visitors also increasing.

• Energy cost increases anticipated, to be offset by lift ticket price adjustments.

• EBITDA forecasted at ¥2,120 million (+29.1%).

• Continued investment in snowmaking, facility upgrades, and expansion of the NSD Kids Program.