OLBA HEALTHCARE (2689) Q4 2024 earnings summary

Executive summary

• Achieved record highs in net sales, gross profit, operating income, and ordinary income for FY June 2024, with strong recovery in operations to pre-pandemic levels and robust growth in core medical device and consumables segments.

• Net sales increased by 7.3% year-over-year to ¥118,564 million for the fiscal year ended June 30, 2024.

• Operating profit rose 3.5% to ¥2,226 million, and profit attributable to owners of parent grew 6.1% to ¥1,500 million year-over-year.

• Implemented cost pass-throughs to offset global inflation and yen depreciation, maintaining profitability despite rising input costs.

• Launched new business initiatives, including partnerships, product launches, and expansion into new regions and customer segments.

Financial highlights

• Net sales reached ¥118.6 billion, up 7.3% year-over-year; operating profit rose 3.5% to ¥2.23 billion; net income attributable to owners was ¥1.5 billion, up 6.1% year-over-year.

• Gross profit improved to ¥13,600 million from ¥12,954 million year-over-year.

• Gross margin improved to 11.47%; EPS was ¥251.68.

• Cash and cash equivalents at year-end were ¥2.68 billion, up from ¥2.36 billion.

• Equity ratio increased to 26.3%; ROE was 13.8%.

Outlook and guidance

• FY June 2025 forecasts further record highs: sales of ¥123.7 billion (+4.4% YoY), operating profit of ¥2.27 billion (+1.9% YoY), and net income of ¥1.47 billion.

• Dividend per share planned at ¥80, marking the fifth consecutive annual increase.

• Medium-term plan targets ¥135 billion in sales and ¥2.7 billion in operating profit by FY June 2027.