Tokai Rika (6995) Q1 2024 earnings summary

Executive summary

• Q1 FY2024 revenue and profit reached record highs for a first quarter, supported by recovering production at major customers and improved cost recovery and control.

• Full-year guidance was raised following Q1 results.

Financial highlights

• Q1 revenue was ¥148.6bn, up 19.1% YoY; ¥4.1bn was attributed to FX and ¥19.7bn to underlying growth.

• Operating income was ¥8.7bn versus a ¥0.7bn loss; operating margin rose to 5.9% from negative 0.6%.

• Ordinary income was ¥14.3bn, up ¥10.2bn, and net income attributable to owners was ¥10.3bn, up ¥7.5bn YoY.

Outlook and guidance

• FY2024 revenue forecast is ¥580.0bn, up 4.9% YoY; operating income ¥20.0bn, up 20.1%, with a 3.4% margin.

• Forecast ordinary income is ¥21.0bn, down 12.7%, while net income is ¥13.0bn, up 19.3% YoY.

• Operating income guidance was raised ¥3.0bn from the initial forecast to ¥20.0bn.