Olympus (7733) Q4 2024 earnings summary

Executive summary

• FY2024 revenue rose 6.2% to ¥936.2bn; adjusted operating profit fell 14.3% to ¥151.5bn and reported operating profit fell 76.6% to ¥43.6bn.

• Net profit attributable to owners rose 69.1% to ¥242.6bn, lifted by a ¥349.0bn Scientific Solutions disposal gain; continuing-operations profit was ¥27.0bn.

• FY2025 guidance targets ¥1,021bn revenue, ¥177bn operating profit and ¥198.5bn adjusted operating profit, with a 19.4% adjusted operating margin.

Financial highlights

• Revenue increased ¥54.3bn to ¥936.2bn; cost of sales rose 9.1% to ¥311.1bn and SG&A increased 12.5% to ¥473.2bn.

• Gross profit was ¥625.1bn; gross margin was 66.8%, down 0.9 percentage points YoY, while SG&A was 50.5% of revenue versus 47.7%.

• Profit before tax fell 80.3% to ¥35.9bn; basic EPS was ¥199.91, including ¥177.98 from discontinued operations and ¥21.93 from continuing operations.

• Yen depreciation contributed ¥51.4bn to revenue, ¥12.3bn to operating profit and ¥17.1bn to adjusted operating profit; excluding FX, revenue grew 0.3%.

• Q4 revenue was ¥260.5bn (+8% reported; -1% after FX); operating profit was ¥4.6bn versus ¥44.0bn a year earlier, and adjusted operating profit was ¥41.4bn.

Outlook and guidance

• FY2025 revenue forecast is ¥1,021bn (+9.1% reported), with gross profit of ¥699bn and gross margin of 68.5%.

• FY2025 operating profit is forecast at ¥177bn and adjusted operating profit at ¥198.5bn (+31% reported; +22% after FX), with a 19.4% adjusted margin.

• Parent-attributable profit is forecast at ¥121bn and basic EPS at ¥106.10, as the prior-year disposal gain does not recur.

• Segment forecasts: ESD revenue ¥645bn and operating profit ¥162bn; TSD revenue ¥363bn and operating profit ¥54.5bn.

• FY2025 R&D expenditure is forecast at ¥97bn and capital expenditure at ¥90bn; forecast FX assumptions are ¥151/USD, ¥163/EUR and ¥21/CNY.