Toshiba Tec (6588) Q3 2024 earnings summary

Executive summary

• Net sales for the first nine months of FY2024 rose 7% year-over-year to ¥425.5B, with operating profit up 24% to ¥11.8B and ordinary profit up 74% to ¥11.2B.

• Profit attributable to owners was ¥27.2B, reversing a prior year loss, mainly due to gains from business transfers.

• Retail business saw increased net sales and operating profit; workplace business increased net sales but experienced a decrease in operating profit.

• Retail business remained steady in Japan, with narrowed losses overseas; workplace business Q3 sales declined year-over-year due to strong first-half sales and negative FX impact.

• Full-year FY2024 forecast remains unchanged for profits, with sales guidance raised, but uncertainty persists in overseas business.

Financial highlights

• FY2024 1Q-3Q consolidated net sales: ¥425.5B (+¥28.8B YoY); operating profit: ¥11.8B (+¥2.3B YoY); ordinary profit: ¥11.2B (+¥4.8B YoY); net profit attributable to owners: ¥27.2B (+¥41.9B YoY).

• Gross profit for the nine months was ¥167.5B, up from ¥161.0B YoY; SG&A rose by ¥4.2B; FX changes negatively impacted operating profit by ¥5.8B.

• Basic earnings per share reached ¥513.47, compared to a loss per share of ¥269.95 in the previous year.

• Total assets increased to ¥349.0B as of December 2024, with net assets at ¥113.5B and a capital adequacy ratio of 30.6%.

• Quarterly net sales and operating profit showed sequential improvement, with Q3 net sales at ¥140.2B and operating profit at ¥4.3B (3.1% margin).

Outlook and guidance

• FY2024 full-year forecast: net sales ¥572.0B (+¥23.9B YoY), operating profit ¥18.0B (+¥2.1B YoY), ordinary profit ¥15.0B (+¥4.0B YoY), net profit attributable to owners ¥24.0B (+¥30.7B YoY).

• Dividend forecast maintained at ¥45 per share for FY2024 and FY2025.

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

• FX sensitivity: 1 yen depreciation in USD impacts annual net sales by +¥1.8B and operating profit by -¥0.15B.