Okabe (5959) Q3 2024 earnings summary

Executive summary

• Net sales for the first nine months ended September 30, 2024, declined 14.7% year-over-year to 49,623 million yen, with operating profit down 7.6% to 3,158 million yen and ordinary profit down 5.3% to 3,364 million yen.

• Profit attributable to owners of parent surged 213.0% year-over-year to 2,332 million yen, mainly due to lower extraordinary losses compared to the prior year.

• The business environment was impacted by rising costs, high steel prices, and delays in large-scale construction projects, but the company advanced its medium-term management plan focusing on customer-centric initiatives and digital transformation.

Financial highlights

• Gross profit for the nine months was 15,646 million yen, slightly down from 15,996 million yen year-over-year.

• Comprehensive income rose 73.0% year-over-year to 3,999 million yen.

• Basic earnings per share increased to 50.48 yen from 16.08 yen year-over-year.

Outlook and guidance

• Full-year forecast for 2024 remains unchanged: net sales of 70,000 million yen (down 10.4% year-over-year), operating profit of 4,100 million yen (up 0.4%), ordinary profit of 4,400 million yen (up 2.2%), and profit attributable to owners of parent of 2,800 million yen.

• Dividend forecast for 2024 is 30.00 yen per share, up from 25.00 yen in 2023.