ONWARD Holdings (8016) Q4 2024 earnings summary

Executive summary

• FY2024 net sales rose 7.7% to ¥189.629bn; operating profit more than doubled to ¥11.260bn, its highest level since FY2009, supported by OMO improvements, marketing and supply-chain reforms.

• FY2025 guidance targets further growth in sales and profit, with overseas operations forecast to return to profitability.

Financial highlights

• FY2024 gross profit was ¥105.782bn (+9.3%); recurring profit was ¥10.126bn (+90.4%) and profit attributable to owners of parent was ¥6.611bn (+116.0%).

• EBITDA was ¥16.052bn, up 54.7% YoY; gross margin rose 0.9 pp to 55.8%, SG&A ratio fell 2.2 pp to 49.8%, and operating margin improved to 5.9% from 3.0%.

• Impairment losses were ¥3.586bn; profit before income taxes was ¥6.164bn.

Outlook and guidance

• FY2025 forecast: net sales ¥200.0bn (+5.5%), operating profit ¥12.5bn (+11.0%), recurring profit ¥12.0bn (+18.5%) and profit attributable to owners of parent ¥8.0bn (+21.0%).

• FY2025 EBITDA is forecast at ¥17.7bn (+10.3%); full-year EPS forecast is ¥58.94.

• Guidance assumes firm domestic performance and improving overseas business, particularly in Europe; list-price sales and inventory management are expected to support gross margin.