Rion (6823) Q2 2024 earnings summary

Executive summary

• H1 FY2024 revenue and profit reached record highs, with revenue up 12.1% YoY to ¥12,101 million and operating profit up 61.1% to ¥1,694 million.

• Hearing-aid and medical-testing replacement demand lifted Medical Equipment sales; semiconductor-related demand sustained strong Particle Measurement performance.

Financial highlights

• Gross profit rose 21.2% YoY to ¥6,345 million; SG&A increased 11.2% to ¥4,651 million, below the pace of sales growth.

• Ordinary profit increased 63.0% to ¥1,757 million; net income attributable to owners rose 107.8% to ¥1,258 million.

• H1 operating cash flow was ¥2,035 million; period-end cash and cash equivalents were ¥5,563 million, down ¥2,593 million from the prior-year period.

Outlook and guidance

• FY2024 forecast: revenue ¥25,750 million, up 7.9%; operating profit ¥3,000 million, up 5.5%; net income ¥2,200 million, up 22.3%.

• Full-year forecast assumes sales growth across all segments and record-high revenue; operating margin forecast is 11.7% versus 11.9% in FY2023.

• Medium-term forecasts call for revenue of ¥27,050 million and operating profit of ¥3,250 million in FY2025, rising to ¥28,150 million and ¥3,850 million in FY2026.

• Longer-term management targets include ¥30 billion in consolidated revenue, 15% operating margin and 10% ROE.