NOF (4403) Q4 2024 earnings summary

Executive summary

• FY2023 net sales rose to ¥2,223 hundred million; operating income, ordinary income and net income reached record highs. Annual dividend rose ¥6 to ¥114 per share.

• FY2024 forecast calls for higher sales but lower operating income and net income, reflecting a temporary leveling-off in DDS drug formulation material demand.

Financial highlights

• FY2023 net sales were ¥2,223 hundred million, up ¥45 hundred million YoY; gross profit was ¥795 hundred million, 35.8% of sales.

• Operating income was ¥421 hundred million, up ¥15 hundred million YoY; operating margin rose to 19.0% from 18.7%.

• Ordinary income reached ¥456 hundred million, up ¥24 hundred million; net income was ¥340 hundred million, unchanged YoY.

• EPS was ¥141.2 versus ¥139.0 FY2022; dividend per share was ¥114 versus ¥108.

Outlook and guidance

• FY2024 forecast: net sales ¥2,320 hundred million (+4.4%); operating income ¥405 hundred million (-3.9%), margin 17.5%; ordinary income ¥416 hundred million (-8.7%); net income ¥330 hundred million (-2.9%).

• FY2024 operating income bridge: sales volume +¥24 hundred million, variable costs -¥11 hundred million, fixed costs -¥46 hundred million and inventory valuation +¥16 hundred million; FX impact +¥0.2 billion.

• FY2025 plan targets net sales ¥2,550 hundred million, operating income ¥460 hundred million and an operating margin above 18%; FY2030 targets ¥600 hundred million operating income and margin above 20%.