Toshiba Tec (6588) Q1 2024 earnings summary

Executive summary

• Achieved year-over-year growth in net sales, operating profit, ordinary profit, and profit attributable to owners of parent in 1Q FY2024.

• Net sales rose 15% year-over-year to ¥140,169 million, driven by strong domestic POS and MFP sales and favorable foreign exchange rates.

• Operating profit surged 232% year-over-year to ¥4,276 million, with significant improvement in MFP profitability and domestic POS performance.

• Completed formation of ETRIA joint venture with Ricoh and transferred inkjet head business to RISO KAGAKU CORPORATION on July 1.

• Both Retail and Workplace Solutions Business Groups reported improved performance compared to the previous year.

Financial highlights

• 1Q FY2024 net sales: ¥140.2B (+¥17.8B YoY); operating profit: ¥4.3B (+¥3.0B YoY, 3.1% margin); ordinary profit: ¥4.6B (+¥4.2B YoY, 3.3% margin); profit attributable to owners: ¥3.4B (+¥3.4B YoY, 2.5% margin).

• Gross profit increased to ¥57,319 million from ¥49,264 million year-over-year.

• Comprehensive income was ¥4,189 million, a 59.1% increase year-over-year.

• Basic earnings per share rose to ¥65.03 from ¥0.70 year-over-year.

• Total assets increased to ¥349,726 million, with net assets at ¥97,994 million as of June 30, 2024.

Outlook and guidance

• FY2024 consolidated net sales forecast: ¥565.0B (+¥16.9B YoY); operating profit: ¥18.0B (+¥2.1B YoY, 3.2% margin); ordinary profit: ¥15.0B (+¥4.0B YoY); profit attributable to owners: ¥20.0B.

• Dividend forecast maintained at ¥45 per share.

• Foreign currency exchange rates for FY2024 2Q onward: US$150/¥, EUR160/¥.

• Segment sales forecasts raised for both Retail and Workplace Solutions due to exchange rate impacts.

• Profit attributable to owners of parent projected at ¥20,000 million, with basic EPS of ¥377.86.