Seibu Giken (6223) Q4 2024 earnings summary

Executive summary

• FY2024 net sales rose 11.6% year-over-year to JPY 32,069 million, driven by strong demand in Japan and Europe, offsetting declines in China.

• Operating profit decreased 6.2% year-over-year to JPY 4,030 million, with margins pressured by lower high-margin sales in China and increased costs.

• Net profit attributable to shareholders was JPY 3,336 million, down 2.8% year-over-year.

• Comprehensive income was JPY 4,345 million, up 0.2% year-over-year.

• Annual dividend maintained at JPY 70 per share; share buyback up to JPY 1 billion or 700,000 shares planned.

Financial highlights

• Gross profit margin declined to 34.0% from 38.9% year-over-year.

• EBITDA was JPY 4,993 million (15.6% margin), down from JPY 5,191 million (18.1% margin) in FY2023.

• Cash and cash equivalents increased to JPY 14,442 million as of December 31, 2024.

• Total assets grew to JPY 42,795 million from JPY 39,334 million year-over-year.

• Free cash flow for FY2024 was JPY 4,070 million.

Outlook and guidance

• FY2025 net sales forecasted at JPY 34,632 million (+8.0% YoY), with operating profit expected to decline to JPY 3,552 million (10.3% margin).

• Profit attributable to owners of parent projected at JPY 3,111 million, down 6.7% year-over-year.

• Growth in Japan expected to offset continued weakness in Europe and Korea; China sales to recover modestly.

• Annual dividend to remain at JPY 70 per share; share buyback program continues.

• Basic earnings per share forecasted at JPY 154.76 for FY2025.