Nisshinbo (3105) Q4 2024 earnings summary

Executive summary

• FY2024 net sales decreased by 8.6% to ¥494.7 billion, mainly due to the sale of a brake business subsidiary in the prior year.

• Operating income rose 33.1% to ¥16.6 billion, driven by the consolidation of Kokusai Denki Electric.

• Net income rebounded to ¥10.3 billion from a prior year loss, aided by the absence of extraordinary losses.

• Comprehensive income for FY2024 was ¥25.8 billion, a significant improvement from ¥6.5 billion in FY2023.

• The first year of the Medium-Term Management Plan 2026 focused on portfolio transformation and growth investments, especially in wireless and microdevices.

Financial highlights

• Net sales: ¥494.7 billion (down 8.6% year-over-year).

• Operating income: ¥16.6 billion (up 33.1% year-over-year).

• Ordinary income: ¥24.4 billion (up 54.6% year-over-year).

• Net income attributable to owners: ¥10.3 billion (up ¥30.3 billion year-over-year).

• Cash and cash equivalents at year-end were ¥50.4 billion, up from ¥49.9 billion.

Outlook and guidance

• FY2025 net sales forecast: ¥506.0 billion (+2.3% year-over-year).

• Operating income forecast: ¥19.7 billion (+18.8% year-over-year).

• Net income forecast: ¥18.3 billion (+78.1% year-over-year).

• Net income per share forecast: ¥117.33 for FY2025.

• Growth expected in wireless, communications, and microdevices returning to profitability.