Sakata INX (4633) Q4 2024 earnings summary

Executive summary

• Net sales rose 7.5% year-over-year to ¥245,570 million in FY2024, driven by strong overseas sales, digital and specialty products, and favorable currency effects.

• Operating income increased 15.0% to ¥13,161 million, supported by higher overseas sales and stable raw material costs, despite one-time U.S. acquisition expenses.

• Net income attributable to owners of parent grew 20.6% to ¥9,006 million, aided by extraordinary income from the transfer of interests in Chinese subsidiaries.

• Royalty income was reclassified from non-operating income to net sales starting FY2024, with FY2023 figures restated for comparison.

• Advanced Medium-term Management Plan 2026, focusing on sustainable products and expanded U.S. presence through a major acquisition.

Financial highlights

• Operating income margin improved to 5.4% from 5.1% year-over-year; net income margin increased to 3.7%.

• Earnings per share rose to ¥180.64 from ¥149.22 year-over-year.

• Net assets per share increased to ¥2,264.08 as of December 31, 2024.

• Gross profit increased to ¥58,633 million from ¥50,376 million year-over-year.

• Comprehensive income rose 34.3% year-over-year to ¥18,515 million.

Outlook and guidance

• FY2025 forecast: net sales ¥268,000 million (+9.1%), operating income ¥15,500 million (+17.8%), net income attributable to owners of parent ¥10,800 million (+19.9%).

• Operating income margin expected to rise to 5.8%, and EPS to reach ¥217.67 in FY2025.

• Full-year dividend forecast for 2025 is ¥90 per share, up from ¥70 per share in 2024.

• The U.S. dollar exchange rate is assumed at ¥150 for 2025 forecasts.