T Hasegawa (4958) Q1 2024 earnings summary

Executive summary

• Q1 FY2024 net sales rose 5.8% YoY to ¥16,413 million; operating profit increased 19.3% to ¥1,828 million and profit attributable to owners of parent rose 27.9% to ¥1,331 million.

• Higher sales and an improved cost-of-sales ratio supported operating profit growth; ordinary profit also benefited from lower foreign exchange losses.

Financial highlights

• Gross profit was ¥6,691 million versus ¥6,100 million YoY; SG&A was ¥4,862 million versus ¥4,568 million.

• Ordinary profit rose 29.2% YoY to ¥1,854 million; EPS was ¥32.35 versus ¥25.30, and diluted EPS was ¥32.22 versus ¥25.22.

• Comprehensive loss narrowed to ¥1,069 million from ¥2,502 million, mainly reflecting a smaller negative foreign currency translation adjustment.

• FY2024 dividend forecast is ¥62 per share, comprising ¥31 at the second-quarter end and ¥31 at fiscal year-end; FY2023 total was ¥61.

Outlook and guidance

• FY2024 forecast remains unchanged: net sales ¥66,500 million, operating profit ¥8,300 million, ordinary profit ¥8,800 million, parent profit ¥6,750 million and EPS ¥164.05.

• Forecast YoY changes are sales +2.5%, operating profit +10.6%, ordinary profit +7.5% and parent profit +1.2%.