Sumitomo Forestry (1911) Q3 2024 earnings summary

Executive summary

• Net sales for the nine months ended September 30, 2024, rose 21.0% year-over-year to ¥1,492.3 billion, with operating income up 46.0% to ¥142.6 billion and net income attributable to shareholders up 34.1% to ¥85.6 billion.

• Growth was driven by strong US single-family homes, improved margins in Australia, and a weaker yen, with new consolidation of a US real estate development company.

• The acquisition of Metricon positions the group as Australia's top home builder, expanding its overseas housing business, with the transaction scheduled for November 1, 2024.

• Full-year forecasts remain unchanged, with robust demand in key markets and stable outlooks for the US and Australia.

Financial highlights

• Net sales for 3Q FY12/24 were ¥1,492.3B, up 21.0% year-over-year; operating income rose 46.0% to ¥142.6B.

• Net income increased 34.1% to ¥85.6B; recurring income up 43.5% to ¥142.9B.

• Comprehensive income decreased 26.8% year-over-year to ¥117.3B.

• Net income per share for the period was ¥418.06, up from ¥315.71 in the prior year.

• Total assets reached ¥2,018.9B, up ¥206.2B from the previous year-end, mainly due to expansion in U.S. spec home business.

Outlook and guidance

• Full-year net sales forecast at ¥2,095.0B (+20.9% YoY), operating income at ¥180.0B (+22.7%), and net income at ¥115.0B (+12.2%).

• Dividend per share forecast raised to ¥145 (from ¥125 prior year).

• No changes to segment forecasts; robust demand expected to continue in US and Australia.

• Recurring income projected at ¥193.0B (up 21.1%).