Sakata INX (4633) Q2 2024 earnings summary

Executive summary

• Sales and profits rose in 1H FY2024, driven by volume growth in Asia, stable raw material prices, and strong performance in Europe and the Americas.

• Net sales rose 9.9% year-over-year to ¥121,084 million for the six months ended June 30, 2024.

• Operating income increased 42.9% to ¥7,253 million, with net income attributable to owners up 39.5% to ¥5,318 million.

• Upward revision of full-year forecasts reflects robust first-half results and positive sales and cost trends.

• Interim dividends were increased and treasury stock purchases totaling JPY1.0 billion were completed.

Financial highlights

• Net sales for 1H FY2024 reached ¥121.0B, up 9.9% year-over-year (1.4% excluding FX effects).

• Operating income rose 42.9% to ¥7.2B (28.6% excluding FX), with net income attributable to owners up 39.5% to ¥5.3B.

• Gross profit improved to ¥29,007 million from ¥23,423 million year-over-year.

• Earnings per share increased to ¥106.26 from ¥76.20 year-over-year.

• Equity ratio improved to 53.0% as of June 30, 2024, from 50.9% at end-2023.

Outlook and guidance

• Full-year FY2024 net sales forecast revised to ¥245.0B, up 7.3% from FY2023.

• Operating income projected at ¥14.0B (+22.3%), net income at ¥9.4B (+25.9%), and EPS at ¥188.61.

• Dividend forecast revised upward to ¥55.00 per share for FY2024.

• Segment outlook: Japan expects gradual recovery in package sales but higher costs; Asia and Americas anticipate continued strong sales; Europe aims for profit return ahead of FY2026.