Toyo Tire (5105) Q4 2024 earnings summary

Executive summary

• Achieved record-high revenue of ¥565.4 billion for FY2024, driven by strong sales of key products and favorable exchange rates.

• Operating profit reached ¥94.0 billion (+22.2% YoY), net income ¥74.8 billion (+3.5% YoY), both all-time highs since the 2013 fiscal period change.

• Net sales rose 11.2% year-over-year to 552,825 million yen, with significant growth in both tire and automotive parts segments.

• Operating income surged 74.6% year-over-year to 76,899 million yen, and profit attributable to owners of parent increased 50.7% to 72,273 million yen.

• FY2025 guidance projects revenue of ¥585.0 billion (+3.5% YoY), operating profit of ¥85.0 billion (−9.6% YoY), and net income of ¥50.0 billion (−33.2% YoY).

Financial highlights

• FY2024 revenue: ¥565.4 billion (+2.3% YoY); operating profit: ¥94.0 billion (+22.2% YoY); net income: ¥74.8 billion (+3.5% YoY).

• Gross profit increased to 216,511 million yen from 197,976 million yen year-over-year.

• Ordinary income grew 68.6% year-over-year to 86,047 million yen.

• Free cash flow positive at ¥345 billion; capital investment for FY2024 was ¥341 billion.

• ROE reached 20.2%, well above capital cost (WACC 5.3%).

Outlook and guidance

• FY2025 revenue forecast: ¥585.0 billion (+3.5% YoY); operating profit: ¥85.0 billion (−9.6% YoY); net income: ¥50.0 billion (−33.2% YoY).

• Operating margin expected to decrease to 14.5%; dividend payout ratio to remain above 30%.

• Assumes USD/JPY at 146 (vs. 151 in FY2024), EUR/JPY at 156 (vs. 164).

• Capital ratio improved by 7.7 points to 61.2%, reflecting a stronger financial position.