ONWARD Holdings (8016) Q2 2024 earnings summary

Executive summary

• H1 FY2024 net sales rose 10.0% YoY to ¥90,411 million; operating profit reached ¥5,022 million and parent-attributable profit was ¥2,862 million.

• Stronger gross margins, a lower SG&A ratio, supply-chain efficiency and sales initiatives drove the profit rebound; full-year guidance was raised after H1 exceeded forecasts.

Financial highlights

• H1 gross profit increased 14.3% to ¥51,152 million; SG&A rose 3.6% to ¥46,129 million.

• H1 recurring profit was ¥4,412 million, EBITDA ¥7,390 million (+160.4%), and basic EPS ¥21.09 versus ¥3.51 a year earlier.

• Operating profit rose to ¥5,022 million from ¥0.2bn; recurring profit increased ¥3.8bn and parent-attributable profit ¥2.4bn YoY.

Outlook and guidance

• FY2024 forecast: net sales ¥189,211 million (+7.5%), operating profit ¥11,022 million (+111.4%), recurring profit ¥10,012 million and parent-attributable profit ¥5,462 million (+78.4%).

• EBITDA is forecast at ¥16,100 million (+55.2%); operating profit is expected to exceed ¥10bn for the first time since FY2012.

• Full-year dividend forecast was revised to ¥17 per share; the payout-ratio policy target is at least 35%.