Toagosei (4045) Q4 2024 earnings summary

Executive summary

• FY2024 net sales rose 5.2% year-over-year to ¥167.6 billion, operating income increased 13.9% to ¥14.2 billion, and ordinary profit grew 10.3% to ¥16.0 billion.

• Profit attributable to owners of parent was ¥12.18 billion, up 2.5% year-over-year, while net income remained flat at ¥11.9 billion.

• Shareholder returns were robust, with a 60 yen annual dividend (up 13.2%) and a 116.1% total return, including a buyback and cancellation of 4 million shares.

• The business environment was mixed: strong US and Japanese economies, steady Europe, but weak China and sluggish overseas acrylic ester markets.

• Comprehensive income declined 9.9% year-over-year to ¥15.34 billion.

Financial highlights

• Net sales: ¥167.6 billion (+5.2% YoY); operating income: ¥14.2 billion (+13.9% YoY); ordinary profit: ¥16.0 billion (+10.3% YoY).

• Net income per share: ¥104.56 (+1.7% YoY); annual dividend: ¥60.0 (+13.2% YoY).

• Free cash flow dropped to ¥6.6 billion from ¥18.1 billion due to higher investment activities.

• Cash and equivalents at year-end: ¥40.4 billion, down from ¥47.6 billion.

• Return on equity was 5.6%, and the equity-to-asset ratio stood at 76.5%.

Outlook and guidance

• FY2025 forecast: net sales ¥165.0 billion (down 1.6%), operating income ¥15.0 billion (+5.4%), ordinary profit ¥16.1 billion (+0.7%), net income ¥13.0 billion (+6.7%), and annual dividend ¥65.0.

• Basic earnings per share forecast for FY2025 is ¥119.00.

• Focus on profit growth in mobility, lithium-ion batteries, and semiconductor-related products; early profitability in medical and next-gen battery materials.

• Management targets ROE of 8% and PBR over 1x by 2027.