Pigeon (7956) Q4 2024 earnings summary

Executive summary

• Achieved full-year forecast for the first time in seven years, with double-digit growth in sales and profit, driven by overseas operations and yen depreciation.

• Overseas business, especially China, Singapore, and Lansinoh, drove growth; Japan business saw declines except for baby care.

• Comprehensive income surged 25% year-over-year to ¥13,176 million.

• Significant investments in growth, particularly in mainland China, led to higher SG&A but were managed within plan.

• Extraordinary income and loss of ¥698 million each were recorded, related to a plant subsidy and tax reduction entry.

Financial highlights

• Net sales rose to ¥104,171 million (+10.3% YoY); operating income reached ¥12,139 million (+13.2% YoY); net income attributable to owners was ¥8,371 million (+12.8% YoY).

• Gross margin improved to 49.3% (from 48.1%), offsetting higher SG&A expenses.

• Cash and deposits increased to ¥39,201 million; equity ratio at 74.9%.

• Net income per share was ¥70.00, up from ¥62.06; annual dividend maintained at ¥76 per share, payout ratio 108.7%.

• Net assets rose to ¥84,607 million.

Outlook and guidance

• FY2025 forecast: net sales ¥109,700 million (+5.3% YoY), operating income ¥12,900 million (+6.3% YoY), net income ¥8,400 million.

• Overseas business expected to remain growth driver; new business areas targeted to reach ¥10 billion in sales.

• Ordinary income is forecast to decrease 2.9% year-over-year to ¥12,900 million.

• Dividend per share maintained at ¥76 for FY2025.