Noda (7879) Q4 2024 earnings summary

Executive summary

• Revenue and profit declined significantly for the fiscal year ended November 2024, with revenue down 8.5% to ¥67,039 million and operating profit down 90.5% to ¥444 million, driven by weak housing demand and high material costs.

• The company recorded a large impairment loss and reversal of deferred tax assets, resulting in a net loss attributable to shareholders of ¥4,612 million.

• Segment performance showed a loss in the housing materials business and a sharp profit decline in the plywood business.

• Market conditions were challenging, with weak housing starts, high costs, and subdued demand for plywood and building materials.

• For FY2025, a return to profitability is forecasted, with moderate revenue growth and improved segment performance expected.

Financial highlights

• FY2024 revenue: ¥67,039 million (down 8.5% year-over-year); operating income: ¥444 million (down 90.5% year-over-year); ordinary income: ¥675 million (down 86.5% year-over-year).

• Net income attributable to parent: -¥4,612 million, impacted by impairment losses and deferred tax asset reversal.

• Comprehensive loss: ¥3,697 million.

• Cash and equivalents at year-end: ¥21,739 million.

• ROE: -12.8%; equity ratio: 45.2%.

Outlook and guidance

• FY2025 revenue forecast: ¥67,900 million (+1.3% year-over-year); operating income forecast: ¥600 million (+34.9% year-over-year); net income forecast: ¥400 million (return to profit from previous year’s loss).

• Segment renaming: "Housing Materials" to "Wood-Based Materials"; Arimoto Kogyo to be consolidated.

• Dividend forecast: ¥55 per share, maintaining stable payout policy; next year forecast: ¥36.00.

• Business environment expected to remain challenging, with no strong recovery in new housing starts.

• Focus on expanding in rental, renovation, and non-residential markets, and strengthening cost controls.