Open House Group (3288) Q4 2024 earnings summary

Executive summary

• Achieved record-high net sales of ¥1.29 trillion for FY2024, up 12.8% year-over-year, while operating profit declined 16.3% to ¥119.1 billion and ordinary profit fell 12.2% to ¥120.3 billion; net profit attributable to owners increased 1.0% to ¥92.9 billion.

• Comprehensive income decreased 5.1% year-over-year to ¥96,266 million.

• Inventory adjustments in single-family homes completed, improving gross profit margin and showing a recovery trend in sales.

• Strong demand in property resale and U.S. real estate businesses, with robust sales to overseas investors.

• Maintained a healthy financial position with a 36.2% equity ratio and net debt-to-equity ratio of 0.4.

Financial highlights

• Gross profit declined to ¥206,917 million from ¥218,356 million year-over-year.

• Basic earnings per share increased to ¥782.60 from ¥763.72 year-over-year.

• Dividend per share increased to ¥166, with a payout ratio of 21.2%.

• Cash and cash equivalents at year-end were ¥390.9 billion.

• Total assets grew to ¥1,282,090 million, and net assets rose to ¥535,919 million.

Outlook and guidance

• FY2025 forecasts net sales of ¥1.3 trillion (+0.3% YoY), operating profit of ¥130 billion (+9.2% YoY), and profit attributable to owners of ¥82.0 billion (−11.8% YoY, reflecting absence of negative goodwill).

• Dividend per share planned to increase to ¥168.

• Operating margin expected to recover to 10% in FY2025.