Noda (7879) Q2 2024 earnings summary

Executive summary

• Revenue for the second quarter was ¥32,962 million, down 6.7% year-over-year, with operating profit at ¥660 million, a 74.4% decrease, and net loss attributable to shareholders of ¥1,645 million compared to a profit last year.

• The business environment remains challenging due to weak housing demand, high raw material and logistics costs, intense competition, and falling plywood prices.

Financial highlights

• Operating income dropped 74.4% year-over-year to ¥660 million; recurring profit fell 74.3% to ¥692 million.

• Net income attributable to shareholders was negative ¥1,645 million, impacted by a ¥1,718 million deferred tax asset reversal, reversing a ¥1,565 million profit in the prior year.

• Operating margin fell to 2.0% from 7.3% a year ago.

• Comprehensive income was negative ¥377 million, compared to positive ¥2,389 million last year.

• EPS was negative ¥103.12, down from ¥97.50 in the prior year.

Outlook and guidance

• Full-year guidance is unchanged: revenue ¥72,000 million (down 1.7% YoY), operating income ¥2,800 million (down 40.5%), net income ¥1,800 million (down 40.2%).

• The outlook remains cautious due to persistent weak demand, cost pressures, and uncertainty in the plywood market; no signs of recovery in housing starts.

• Initiatives for the second half include price revisions, cost control, productivity improvements, and expanding high-value products.