Tama Home (1419) Q1 2024 earnings summary

Executive summary

• Q1 FY2024 net sales fell 9.4% YoY to ¥53,237 million; operating profit declined 51.4% to ¥1,380 million and profit attributable to owners of parent fell 51.7% to ¥932 million.

• Custom-home deliveries fell, while detached-home subdivision deliveries and profit increased; custom-home profitability showed an improving trend.

• Total assets were ¥98,178 million at August 31, 2023, versus ¥111,508 million at May 31, 2023; the equity ratio was 31.1%.

Financial highlights

• Net sales were ¥53,237 million versus ¥58,762 million YoY; gross profit was ¥11,925 million versus ¥13,498 million, and SG&A was ¥10,544 million versus ¥10,655 million.

• Operating profit was ¥1,380 million versus ¥2,842 million; operating margin was 2.6% versus 4.8%. Ordinary profit was ¥1,531 million versus ¥2,949 million.

• Profit before tax was ¥1,531 million versus ¥2,949 million; profit attributable to owners of parent was ¥932 million versus ¥1,928 million, and basic EPS was ¥32.17 versus ¥65.83.

• Comprehensive income was ¥882 million versus ¥1,910 million YoY.

Outlook and guidance

• FY2024 forecast: net sales ¥257,000 million, operating profit ¥14,100 million, ordinary profit ¥14,100 million and profit attributable to owners of parent ¥9,200 million; guidance was unchanged.

• FY2024 forecast basic EPS was ¥317.37; forecast YoY changes were +0.4% for net sales, +6.3% for operating profit, +4.6% for ordinary profit and +5.6% for parent profit.

• Q1 progress against the FY2024 plan: net sales 20.7%, operating profit 9.8%, ordinary profit 10.9% and net income 10.1%.