SAN-A CO (2659) Q2 2024 earnings summary

Executive summary

• H1 FY2024 operating revenue ¥114,850 million, up 7.5% YoY; operating profit ¥8,446 million, up 50.3%, exceeding the initial budget by 34.7%.

• Results benefited from recovering out-of-home demand, more inbound tourists and higher prices; utility-cost inflation was more contained than expected.

Financial highlights

• H1 sales ¥106,163 million, up 7.1% YoY; gross profit ¥33,504 million, up 8.5%, with gross margin rising to 31.6% from 31.2%.

• Operating income ¥8,686 million, up 12.7%; selling, general and administrative expenses ¥33,744 million, up 2.4%.

• Ordinary profit ¥8,634 million, up 48.5%; net income attributable to owners of parent ¥5,608 million, up 46.9%.

Outlook and guidance

• FY2024 revised sales forecast ¥206,940 million, up 4.9% YoY; operating profit ¥14,140 million, up 26.4%; ordinary profit ¥14,470 million, up 25.2%.

• Revised net income forecast ¥9,480 million, up 25.2%; EBITDA ¥21,230 million, up 14.3%.

• Full-year existing-store sales growth target raised to 104.9% of prior year from the initial 104.0%; H1 actual was 106.7%, with H2 planned at 103.0%.

• Forecast revisions reflect stronger sales and gross profit; wage increases and bonuses add personnel costs, while energy savings and public subsidies moderate electricity costs.