PARK24 Co (4666) Q4 2024 earnings summary

Executive summary

• FY2024 saw strong domestic performance with net sales up 12.4% and operating profit up 21.0%, exceeding plans, but profit attributable to owners of parent missed targets due to impairment losses in the UK and tax expenses in Australia.

• Comprehensive income increased 6.6% year-over-year, and mobility business saw increased usage fees per car and overall profit growth.

• FY2025 targets record-high sales of ¥404 billion and profit of ¥21.5 billion, with continued network expansion and investments in sustainable growth, though profit growth will be moderate due to upfront investments.

Financial highlights

• FY2024 net sales: ¥370.9B (+12.4% YoY, +13.9B vs. plan); operating profit: ¥38.7B (+21.0% YoY, +3.6B vs. plan); recurring profit: ¥35.4B (+28.1% YoY, +4.4B vs. plan).

• Profit attributable to owners of parent: ¥18.6B (+6.2% YoY, ¥-1.3B vs. plan), impacted by ¥1.9B impairment in UK and ¥1.5B tax loss in Australia.

• Net income per share: ¥109.20; net assets per share: ¥457.79.

• Cash flows from operating activities: ¥54,176 million; free cash flow: ¥16,612 million.

Outlook and guidance

• FY2025 forecast: net sales ¥404B (+8.9% YoY), operating profit ¥39B (+0.8% YoY), profit attributable to owners of parent ¥21.5B (+15.4% YoY).

• Focus on network expansion, digitalization, and next-generation parking and mobility services.

• Dividend forecast for FY2025 is ¥30/share (DOE 5.2%), with a target DOE of 10% in FY2026.