T Hasegawa (4958) Q4 2024 earnings summary

Executive summary

• FY2024 net sales reached a record ¥71,645 million, up 10.4% YoY; operating profit rose 24.8% to ¥9,371 million and parent-attributable profit rose 7.9% to ¥7,201 million.

• Growth across operating bases, favorable product mix and an improved cost-of-sales ratio supported results; overseas sales were 48.5% of consolidated sales.

• Sales and profit exceeded FY2024 targets; FY2025 guidance forecasts further growth.

Financial highlights

• Gross profit was ¥29,643 million, up 15.4%; ordinary profit rose 18.8% to ¥9,723 million and EBITDA rose 18.8% to ¥14,392 million.

• Versus plan, revenue exceeded target by ¥5,145 million, operating profit by ¥1,071 million and net profit by ¥451 million.

• Cost of sales ratio improved 1.8 percentage points to 58.6%; SG&A rose 11.5% to ¥20,272 million.

• Comprehensive income fell 25.0% to ¥5,846 million, reflecting negative foreign currency translation and lower valuation differences on available-for-sale securities.

• Operating cash flow increased to ¥13,947 million from ¥8,012 million; year-end cash and cash equivalents were ¥31,952 million.

Outlook and guidance

• FY2025 guidance: net sales ¥74,300 million (+3.7%), operating profit ¥9,970 million (+6.4%), ordinary profit ¥10,450 million (+7.5%) and parent-attributable profit ¥7,580 million (+5.2%).

• EBITDA is forecast at ¥15,254 million (+6.0%); revenue and operating profit forecasts include negative FX impacts of ¥973 million and ¥93 million.

• U.S. growth following the ABELEI acquisition and steady China demand are expected to support growth; strategy prioritizes the USA, China and Southeast Asia.

• FY2027 plan: revenue ¥80,200 million, operating profit ¥10,040 million, net profit ¥7,820 million and overseas sales share of 50.2%.