Toyo Tanso (5310) Q4 2024 earnings summary

Executive summary

• Net sales for FY2024 rose 7.8% year-over-year to ¥53,093 million, with operating profit up 31.8% to a record ¥12,238 million, and profit attributable to owners increasing 32.7% to ¥9,960 million, driven by favorable product mix, exchange rates, and strong demand in electronics and mobility applications.

• The company accelerated its shift to high value-added products and improved cost competitiveness.

• ROE improved to 11.2%.

Financial highlights

• Operating profit margin increased to 23.1% from 18.8% year-over-year, with ordinary profit rising 32.4% to ¥13,480 million.

• Gross profit increased to ¥21,489 million from ¥17,722 million YoY.

• Basic EPS climbed to ¥474.95 from ¥357.91.

• Total assets grew to ¥113,190 million, and equity ratio remained strong at 83.2%.

• Net cash from operating activities increased to ¥9,489 million.

Outlook and guidance

• FY2025 net sales are forecast to decline 2.1% to ¥52,000 million, with operating profit expected to decrease 18.3% to ¥10,000 million due to higher costs and less favorable exchange rates.

• Profit attributable to owners is projected to fall 29.7% to ¥7,000 million, and ROE to 7.3%.

• Dividend per share is forecast at ¥145, maintaining a payout ratio above 30%.

• The company expects continued demand in electronics, mobility, and energy, but anticipates an adjustment phase for SiC semiconductor applications.