Open House Group (3288) Q3 2024 earnings summary

Executive summary

• Net sales for 3Q FY2024 rose 14% year-over-year to ¥895.1 billion, with profit attributable to owners of parent at ¥68.6 billion, up 11.6% year-over-year.

• Operating profit declined 16.5% year-over-year to ¥80.8 billion, while ordinary profit fell 11.1% to ¥84.1 billion.

• Meldia Co., Ltd. and 13 affiliates were newly consolidated, impacting segment structure and results.

• Comprehensive income grew 20.5% year-over-year to ¥80.9 billion.

• Corporate philosophy renewed to emphasize customer needs, integrity, and community contribution.

Financial highlights

• Gross profit for the period was ¥146.1 billion, down from ¥151.9 billion year-over-year.

• Operating profit margin declined to 9.0% from 12.3% YoY.

• SG&A expenses increased to ¥65.3 billion (7.3% of net sales).

• Total assets as of June 30, 2024, were ¥1,304.6 billion, up ¥105.96 billion year-over-year.

• Maintained a 35.1% equity ratio and net D/E ratio of 0.6.

Outlook and guidance

• FY2024 full-year forecast: net sales ¥1.3 trillion (+13.2% YoY), ordinary profit ¥120 billion (−12.4% YoY), profit attributable to owners ¥92.5 billion (+0.5% YoY), and basic EPS ¥775.24.

• No change to guidance as progress is in line with plan.

• Dividend per share forecast at ¥166, payout ratio 21.4%.

• Dividend forecast for FY2024: annual dividend per share of ¥164.00, unchanged from prior guidance.