Tamron (7740) Q3 2024 earnings summary

Executive summary

• Net sales rose 32.2% year-over-year to ¥68,456 million for 3Q FY2024, with operating income up 64.3% and net income up 53.7% year-over-year.

• Surpassed previous full-year record for operating income and met first-year targets of the new medium-term plan ahead of schedule.

• Comprehensive income increased 23.3% year-over-year to ¥13,119 million.

• Implemented shareholder-friendly actions: ¥2 billion treasury share repurchase, 2-for-1 stock split, and increased dividend forecasts.

Financial highlights

• Gross profit margin improved to 45.5% (+0.7pt YoY); operating income margin rose to 24.4% (+4.7pt YoY).

• Gross profit increased from ¥23,218 million to ¥31,144 million year-over-year.

• EPS (basic) was ¥295.77, up from ¥190.29, reflecting a 2-for-1 stock split effective July 1, 2024.

• Total assets grew to ¥96,412 million from ¥87,062 million at FY2023-end; net assets rose to ¥77,539 million.

• Favorable foreign exchange rates contributed ¥4.85 billion to net sales and ¥1.34 billion to operating income for 1Q–3Q.

Outlook and guidance

• Full-year FY2024 guidance revised upward: net sales ¥89,000 million (+24.6% YoY), operating income ¥19,600 million (+44.0% YoY), net income ¥14,430 million (+33.5% YoY).

• Net profit per share forecast at ¥349.28 for FY2024, post stock split.

• Expects to exceed first-year targets of the "Value Creation 26" medium-term plan in sales, operating income, and ROE.

• Segment forecasts: double-digit sales growth in Photographic Products, 25% sales growth in Surveillance & FA Lenses, and 1.3x sales growth in Mobility & Healthcare Products.