Toyo Tire (5105) Q2 2024 earnings summary

Executive summary

• Achieved record-high net sales of ¥273.5B and operating income of ¥47.6B for Q2 FY2024, driven by favorable forex, lower freight costs, and strong sales of priority products.

• Ordinary profit reached ¥59.8B and profit attributable to owners of parent was ¥42.0B, both record highs for the second quarter.

• Interim dividend per share increased to ¥50, up ¥30 year-over-year.

Financial highlights

• Net sales rose 3.0% year-over-year to ¥273.5B; operating income up 78.3% to ¥47.6B; ordinary income up 54.2% to ¥59.8B.

• Profit attributable to owners of parent increased 44.2% year-over-year to ¥42.0B.

• Operating margin improved to 17.4% from 10.0% year-over-year.

• Gross profit increased to ¥114.7B from ¥98.1B year-over-year.

• Comprehensive income reached ¥70.6B, up from ¥48.7B year-over-year.

Outlook and guidance

• FY2024 net sales forecast revised to ¥560.0B (+1.3% YoY); operating income forecast raised to ¥81.0B (+5.3% YoY).

• Profit attributable to owners of parent forecast at ¥50.0B, down 30.8% YoY due to prior year one-time gains.

• Annual dividend per share forecast increased to ¥105.