OYO (9755) Q2 2024 earnings summary

Executive summary

• Achieved significant growth in sales and profit for the first half of FY12/24, with all segments contributing to the increase.

• Net sales for the six months ended June 30, 2024, rose 19.5% year-over-year to ¥34,570 million, with operating profit up 131.7% to ¥2,340 million and ordinary profit up 115.4% to ¥2,764 million.

• Profit attributable to owners of parent increased 64.6% year-over-year to ¥1,965 million, and comprehensive income rose to ¥4,950 million.

• Progressed strongly toward full-year targets, surpassing 50% of forecasts in key metrics.

• Maintained full-year forecasts released in February 2024.

Financial highlights

• Orders rose 20.4% year-over-year to ¥45.3 billion; net sales up 19.5% to ¥34.57 billion.

• Operating profit increased 131.7% year-over-year to ¥2.34 billion, with OPM rising to 6.8%.

• Ordinary profit up 115.4% to ¥2.76 billion; net income attributable to owners up 64.6% to ¥1.97 billion.

• Gross profit increased from ¥8,973 million to ¥11,393 million year-over-year, while operating profit more than doubled.

• Basic earnings per share for the period was ¥82.72, up from ¥49.87 in the prior year.

Outlook and guidance

• Full-year forecasts maintained: orders ¥65 billion, net sales ¥66 billion, operating profit ¥3.5 billion, net income ¥2.6 billion.

• Full-year 2024 forecast: net sales of ¥66,000 million (up 0.6% year-over-year), operating profit of ¥3,500 million (up 23.2%), ordinary profit of ¥4,000 million (up 11.3%), and profit attributable to owners of parent of ¥2,600 million (down 35.1%).

• Full-year basic earnings per share forecast is ¥109.94.

• Strong first-half progress suggests high confidence in achieving annual targets.