Otsuka (4768) Q2 2024 earnings summary

Executive summary

• Consolidated net sales for Jan–Jun 2024 reached ¥569,722 million, up 9.3% year-over-year, with operating profit up 5.8% to ¥38,843 million and profit attributable to owners of parent up 6.0% to ¥26,930 million.

• Second quarter (Apr–Jun) consolidated net sales grew 8.8% year-over-year to ¥303,058 million.

• Comprehensive income increased 4.9% year-over-year to ¥27,184 million.

Financial highlights

• Ordinary profit for Jan–Jun 2024 was ¥39,852 million, up 5.9% year-over-year.

• Gross profit increased to ¥113,327 million from ¥106,287 million year-over-year.

• Basic earnings per share (EPS) was ¥71.02, reflecting a two-for-one stock split; without the split, EPS would be ¥142.04.

• Total assets grew to ¥623,884 million as of June 30, 2024, up from ¥561,805 million at the end of 2023.

• Cash flow from operating activities was ¥55.7 billion, while investing activities used ¥25.8 billion.

Outlook and guidance

• FY2024 consolidated net sales are planned at ¥1,055,000 million, with operating profit targeted at ¥70,500 million and profit attributable to owners of parent at ¥48,700 million.

• Full-year 2024 forecast: net sales of ¥1,055,000 million (up 7.9%), operating profit of ¥69,500 million (up 10.4%), and profit attributable to owners of parent of ¥48,700 million (up 2.6%).

• Basic EPS for the full year is forecast at ¥128.43 (¥256.86 without stock split).

• Dividend forecast for FY2024 is ¥70.00 per share (¥140.00 without stock split).

• Management aims for stable growth and productivity improvements, with a focus on maintaining profit margins above 7%.