The Japan Wool Textile Co Ltd (3201) Q4 2024 earnings summary

Executive summary

• FY2024 saw net sales increase 1.7% to ¥115,438 million and operating profit rise 5.7% to ¥11,640 million, driven by M&A contributions despite a reduction in the Human & Future Development business portfolio.

• Profit attributable to owners of parent surged 17.4% to ¥8,970 million.

• All planned targets for net sales, operating profit, and other profits were achieved for FY2024.

Financial highlights

• Net sales rose to ¥115,438 million, up 1.7% year-over-year; operating income increased 5.7% to ¥11,640 million; ordinary profit grew 4.0% to ¥12,098 million.

• Profit attributable to owners of parent grew 17.4% to ¥8,970 million; ROE improved to 7.6%.

• Operating margin reached 10.1%, up 0.4 percentage points year-over-year.

• Basic earnings per share increased to ¥130.10 from ¥108.55 year-over-year.

• Extraordinary losses increased to ¥728 million.

Outlook and guidance

• FY2025 sales forecast at ¥128,000 million (+10.9% YoY); operating income projected at ¥12,000 million (+3.1% YoY); ordinary profit at ¥12,400 million (+2.5% YoY); profit attributable to owners of parent forecast to decline by 5.2% to ¥8,500 million.

• Basic earnings per share forecasted at ¥123.26 for the next fiscal year.

• Growth anticipated in non-woven fabrics and felt sectors, with full-year contributions from recent M&A.

• Operating margin expected to decrease to 9.4%.