Roland (7944) Q4 2024 earnings summary

Executive summary

• FY12/2024 saw year-over-year declines in revenue and profit due to post-pandemic dealer inventory adjustments, global economic uncertainty, and slow demand recovery; market began gradual recovery in H2/2024.

• Medium-Term Plan (FY2023-2025) targets will not be achieved due to environmental changes; focus shifted to addressing post-pandemic challenges and selective investments.

• Strategic focus included new product launches, market expansion, and foundation strengthening, such as ERP upgrades and new R&D initiatives.

• FY12/2025 is expected to mark a transition to a re-growth phase, with anticipated YoY increases in revenue and profit despite adverse FX assumptions.

Financial highlights

• FY12/2024 sales: JPY 99.4bn (-2.9% YoY), operating profit: JPY 9.95bn (-16.2% YoY), net income: JPY 5.98bn (-26.7% YoY), EBITDA: JPY 12.84bn (-12.2% YoY).

• Gross margin: 42.8%, operating margin: 10.0%, net margin: 6.0%.

• Total assets increased to JPY 83.18bn, net assets to JPY 46.68bn, equity ratio 56%.

• FY12/2025 forecast: sales JPY 100.9bn (+1.5% YoY), operating profit JPY 10.1bn (+1.5% YoY), net income JPY 7.2bn (+20.5% YoY), EBITDA JPY 13.22bn (+2.9% YoY).

• Dividend payout ratio was 79.2%, with annual dividends maintained at JPY 170 per share.

Outlook and guidance

• FY12/2025 expects a re-growth phase with sales and profit increases in major regions and categories; plans +4.2% YoY sales growth excluding FX impact.

• No major extraordinary gains or losses expected for FY12/2025.

• H1 FY12/2025: sales JPY 46.4bn (-0.7% YoY), operating profit JPY 3.8bn (-14.2% YoY); H2: sales JPY 54.5bn (+3.4% YoY), operating profit JPY 6.3bn (+14.1% YoY).

• Annual dividend forecast for FY12/2025 is JPY 170 per share.