Sumitomo Forestry (1911) Q2 2024 earnings summary

Executive summary

• Sales and income rose sharply year-over-year, driven by robust US single family home business, yen depreciation, and strong Global Construction and Real Estate performance.

• Net sales for the six months ended June 30, 2024, rose 20.2% year-over-year to ¥981.4 billion, with operating income up 43.0% to ¥93.3 billion and profit attributable to owners up 24.3% to ¥55.7 billion.

• Comprehensive income increased 52.4% year-over-year to ¥181.6 billion.

• Full-year forecasts were revised upward, reflecting continued strength in overseas operations and improved domestic housing margins.

Financial highlights

• Net sales for 2Q FY12/2024 increased 20.2% year-over-year to ¥981.4 billion; net income rose 24.3% to ¥55.7 billion.

• Operating income grew 43.0% to ¥93.3 billion; recurring income up 41.3% to ¥95.2 billion.

• Gross profit for the period was ¥241.2 billion, up from ¥185.2 billion year-over-year.

• Net income per share increased to ¥272.22 from ¥223.17 year-over-year.

• Total assets grew to ¥2,111.5 billion from ¥1,812.7 billion at the previous year-end.

Outlook and guidance

• Full-year net sales forecast raised to ¥2,095.0 billion (+20.9% YoY); net income forecast at ¥115.0 billion (+12.2% YoY).

• Operating income projected at ¥180 billion (+22.7%), recurring income at ¥193 billion (+21.1%).

• Year-end dividend forecast increased by ¥15 to ¥145 per share, reflecting higher earnings.

• Domestic custom-built housing orders and profit margins expected to remain strong; US and Australia housing forecasts revised upward.