PCI Holdings (3918) Q4 2024 earnings summary

Executive summary

• Net sales for the fiscal year ended September 30, 2024, were ¥25,084 million, down 12.0% year-over-year, with operating profit at ¥1,054 million (down 38.3%) and net profit attributable to owners at ¥817 million (down 18.9%).

• Comprehensive income declined to ¥719 million from ¥1,211 million in the previous year.

• Compared to the revised forecast, net sales and gross profit were below target, but operating profit and net profit slightly exceeded expectations.

• The company is undergoing a management transition and integration with Restar Corporation, aiming to accelerate value creation.

Financial highlights

• Gross profit for FY2024 was ¥5,736 million, down from ¥6,935 million in FY2023; gross profit margin was 22.9% (down 1.5p YoY).

• Ordinary profit dropped 44.9% year-over-year to ¥978 million.

• Basic earnings per share for FY2024 was ¥82.34, compared to ¥100.09 in FY2023.

• Cash and cash equivalents at period end were ¥3,954 million, slightly down from ¥4,035 million YoY.

• Free cash flow: ¥1.34 billion.

Outlook and guidance

• Fiscal year ending March 2025 will be a six-month period to align with Restar Corporation.

• Net sales forecast: ¥12,700 million; operating profit forecast: ¥590 million; net profit forecast: ¥365 million.

• Basic earnings per share forecast for the next period is ¥36.85.

• Planned year-end dividend for FY3/2025: ¥18 per share; payout ratio approx. 50%.

• Continued focus on medium-term plan "PCI-VISION 2026" with growth in engineering and ICT, but ongoing challenges in product/device business.