PAL GROUP Holdings CO (2726) Q4 2024 earnings summary

Executive summary

• FY24 revenue reached a record ¥192,544m, up 17.1% YoY; all profit measures also set records, led by recovering apparel store sales, EC growth and 3COINS expansion.

• Operating profit of ¥18,605m and ordinary profit of ¥18,839m came in slightly below plan after a nearly ¥1.1bn year-end provision for directors’ retirement benefits.

Financial highlights

• Revenue ¥192,544m, up 17.1% YoY; gross profit ¥106,283m, up 17.8%.

• Operating profit ¥18,605m, up 17.6%; ordinary profit ¥18,839m, up 17.3%; parent-attributable net income ¥12,845m, up 29.0%.

• Standalone holdings-plus-PAL revenue was ¥172,051m, up 18.0%; operating profit ¥17,814m, up 22.6%; net income ¥11,826m, up 26.9%.

Outlook and guidance

• FY25 consolidated revenue is forecast at ¥203,500m (+5.7% YoY), operating profit ¥20,120m (+8.1%), ordinary profit ¥20,370m (+8.1%) and net income ¥12,940m (+0.7%).

• FY25 consolidated gross profit is forecast at ¥112,400m (+5.8%), with gross margin of 55.2%, unchanged YoY.

• Standalone holdings-plus-PAL FY25 revenue is forecast at ¥180,300m (+4.8%); operating profit ¥17,300m (-2.9%) and net income ¥10,640m (-10.0%).

• Apparel sales and profit are expected to grow, while extreme yen weakness is expected to delay recovery in goods profitability; cost and sourcing measures are underway.