SAN-A CO (2659) Q4 2024 earnings summary

Executive summary

• FY ended Feb. 2024 operating revenue was ¥227,581m; operating profit rose 47.1% YoY to ¥16,464m, supported by sales growth and lower utility costs.

• FY2025 plan targets continued revenue growth and operating profit of ¥16,670m, up 1.3% YoY, amid recovering tourism and higher labor and electricity costs.

Financial highlights

• FY2024 sales were ¥210,190m, up 6.5% YoY; gross profit was ¥66,723m, up 8.7%, and SG&A was ¥67,649m, up 1.9%.

• Operating profit was ¥16,464m, up ¥5,273m YoY; ordinary profit was ¥16,893m and net income attributable to owners of parent was ¥10,683m.

• Sales growth reflected recovering customer traffic during holidays and events, increased tourism, and higher unit prices amid inflation; utility expenses fell to 90.0% of the prior-year level.

Outlook and guidance

• FY2025 plan: operating revenue ¥236,120m, sales ¥218,385m, operating profit ¥16,670m, ordinary profit ¥17,043m, and net income ¥11,185m.

• Planned gross margin is 31.7%, unchanged YoY; EBITDA is ¥23,384m, 98.9% of FY2024.

• Existing-store sales are forecast at 104.6% of FY2024; drivers include tourism recovery, stronger consumer spending, inflation-driven unit-price gains, and contributions from renovated stores.

• Personnel expenses are expected to rise with regular raises, base-pay increases, and higher minimum wages; utility costs are forecast at 113.2% of FY2024, reflecting electricity price increases from May usage.