Okabe (5959) Q4 2024 earnings summary

Executive summary

• Net sales for FY2024 decreased 13.2% year-over-year to 67,806 million yen, with operating profit rising 2.7% to 4,194 million yen and ordinary profit up 2.8% to 4,422 million yen.

• Loss attributable to owners of parent was 874 million yen, mainly due to 5,918 million yen in extraordinary losses, including a U.S. lawsuit settlement and investment security valuation loss.

• Comprehensive income was negative 1,309 million yen, compared to negative 6,050 million yen in the prior year.

Financial highlights

• Gross profit was 21,160 million yen, nearly flat year-over-year.

• Net assets decreased to 59,541 million yen, with an equity ratio of 68.4%.

• Cash and cash equivalents at year-end were 11,364 million yen, down 1,175 million yen from the previous year.

• Cash flows from operating activities were 3,729 million yen, down from 6,202 million yen year-over-year.

Outlook and guidance

• FY2025 consolidated forecasts: net sales of 72,500 million yen (+6.9%), operating profit of 4,700 million yen (+12.0%), ordinary profit of 4,800 million yen (+8.5%), and profit attributable to owners of parent of 3,120 million yen.

• Focus areas include growth in temporary formwork, structural materials, civil engineering, and overseas governance, aiming for a P/B ratio above 1x.