NPR-Riken (6209) Q4 2024 earnings summary

Executive summary

• Holding company established Oct 2, 2023; reported FY2023 results cover Oct–Mar, while comparable FY2022/FY2023 figures reflect 12 months for both legacy businesses.

• On the reported basis, revenue, operating income and ordinary income exceeded forecast; net income fell short as the negative goodwill gain was lower than expected.

• Comparable 12-month results showed higher revenue and operating profit; adjusted net income excluding the negative goodwill gain rose 42% YoY.

Financial highlights

• Reported FY2023: revenue 1,386 (¥100m), operating income 88, ordinary income 116 and net income 263; adjusted net income excluding negative goodwill was 71.

• Comparable FY2023: revenue 1,686 (¥100m), up 16%; operating income 106, up 51%; ordinary income 137, up 35%.

• Comparable net income was 279, up 355%, including a 192 negative goodwill gain; adjusted net income excluding the gain was 87, up 42%.

• Free cash flow was 65 (¥100m); cash and cash equivalents declined 35 YoY to 223, with acquisition-related investment outflows and loan repayments.

Outlook and guidance

• FY2024 forecast: revenue 1,710 (¥100m), up 1%; operating income 104, down 2%; ordinary income 127, down 7%; net income 80, down 8% vs comparable FY2023.

• Forecast assumes USD/JPY 145 and EUR/JPY 155; recent average rates were 151 and 163, respectively.

• Operating income forecast falls 2 YoY as strategic investment, depreciation and R&D costs offset rationalization, price pass-through and FX effects.

• FY2024 planned capex 100, depreciation 95 and R&D 47 (¥100m), up 23, 2 and 3, respectively; investment targets growth businesses, new products and carbon neutrality.